The African Export-Import Bank, widely known as Afreximbank, has approved a $100 million financing facility to support the rehabilitation and construction of more than 200 miles of roads across The Bahamas, expanding the lender’s footprint in the Caribbean under its Global Africa partnership strategy.
The funding has been extended to Bahamas Striping Group of Companies Ltd under a receivables discounting arrangement tied to government approved road contracts. The agreement was formalised within a broader cooperation framework signed with the Government of The Bahamas during the 48th Conference of Heads of Government of the Caribbean Community held in Bridgetown, Barbados, in 2025.
Under the structure, Afreximbank will provide advance financing against certified works completed by the contractor. These works include asphalt paving, road striping, safety enhancements and routine maintenance across several islands in the archipelago. The receivables discounting model allows the contractor to access liquidity based on payments due from the government rather than waiting for the full settlement cycle.
The Bahamas, an island nation of more than 700 islands and cays, depends heavily on tourism and inter island commerce. Reliable road networks are essential for linking airports, seaports, hotels and residential communities. Officials say modernising transport infrastructure is critical to improving road safety, maintaining competitiveness in the tourism sector and facilitating trade within the archipelago.
Okechukwu Ihejirika, Acting Chief Operating Officer of Afreximbank’s Caricom office, described the transaction as an innovative approach to structured finance within cross regional partnerships. He said the facility demonstrates the bank’s growing commitment to supporting infrastructure development beyond the African continent, particularly in Caribbean states with historic and economic ties to Africa.
The financing also builds on engagements held during Afreximbank’s 2024 Annual Meetings and the AfriCaribbean Trade and Investment Forum in Nassau, where policymakers and business leaders advocated deeper economic cooperation between Africa and the Caribbean.
Receivables discounting, sometimes referred to as factoring, is increasingly used in infrastructure projects to improve contractor cash flow. By monetising certified invoices, companies can pay workers, purchase materials and accelerate project timelines without relying solely on traditional bank loans. Supporters argue that such mechanisms reduce project delays and enhance execution reliability.
Bahamas Striping Group of Companies, founded in 2010, has delivered more than 200 projects across Nassau, Exuma and Eleuthera and employs over 300 people, including subcontractors. Company executives say the facility will enable faster rollout of works across multiple islands while strengthening support for local suppliers and service providers.
Beyond immediate construction activity, the road upgrades are expected to have broader socioeconomic effects. Improved infrastructure can enhance access to schools, healthcare facilities and commercial hubs, particularly in remote communities where connectivity challenges persist. For a tourism driven economy, efficient transport corridors are also vital to visitor experience and investor confidence.
While Afreximbank’s core mandate historically centred on intra African trade finance, the bank has in recent years expanded operations into the Caribbean, framing the engagement as part of a wider Global Africa agenda aimed at strengthening trade, investment and financial integration between the two regions.
The $100 million Bahamas facility signals a continued evolution of Afreximbank’s cross regional strategy, positioning infrastructure finance as a key lever for economic resilience and deeper Africa Caribbean collaboration.
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