$140 million to boost intra-African trade

$140 million to boost intra-African trade
$140 million to boost intra-African trade

(Ecofin Agency) – The guarantee will support the trade financing operations of 7 African subsidiaries of Ecobank.

Ecobank Transnational Incorporated (ETI) signed this Friday, May 17, 2024 with the International Finance Corporation (IFC), a guarantee agreement of $140 million. This mechanism will strengthen the trade finance operations of Ecobank subsidiaries in Burkina Faso, Cameroon, Ivory Coast, Ghana, Malawi, Mali and Togo.

These entities will be able to increase their commercial lending to small and medium-sized enterprises (SMEs), while benefiting from coverage against risks emanating from these markets. Within targeted economies, trade lines may be limited for some businesses. ETI therefore hopes to develop new commercial partnerships with them.

Establishing this global trade finance program reinforces Ecobank’s objective to stimulate intra-African trade and support small and medium-sized businesses to engage in it with confidence “, underlined Alain Nkontchou, chairman of the board of directors at Ecobank. And to add: By removing financial barriers, we will leverage Ecobank’s borderless payments platform and our range of solutions so that these businesses can seize the opportunity offered by the single market of the African Continental Free Trade Area.”

Sérgio Pimenta, IFC vice-president for Africa, declared: “IFC’s renewed partnership with the Ecobank group will facilitate access to financing for businesses in Africa, support economic growth and stimulate job creation.”

In addition to the guarantee, IFC will provide advisory services to ETI and its subsidiaries, strengthening their non-financial support for SMEs, particularly for businesses owned or led by women.

Through this agreement, the two financial institutions strengthen their partnership which dates back to 1993.

Chamberline Moko

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