Ecobank Transnational Incorporated and the African Development Bank have signed a $200m trade finance facility.
According to a statement by Ecobank, the facility was signed at the AfDB Annual General Meeting in Kigali.
The facility comprises two components: a $100m unfunded risk-sharing facility to bolster Ecobank’s capacity as an international confirming bank for trade transactions originated by issuing banks in Africa; and another $100m trade facilitation loan which will be used by Ecobank to provide trade finance support to local corporate bodies and Small and Medium Scale Enterprises in Africa.
Over a period of 3.5 years, the facility will support approximately $1.8bn of trade transactions in Africa, the statement added.
The Group Chief Executive Officer, Ecobank Group, Mr. Albert Essien, said, “This facility will greatly support international and intra-regional trade in Africa. We look forward to an ever-deepening collaboration with the AfDB to provide vital trade finance support to promote regional integration and the development of SMEs across Africa.”
Source: Punch
