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Ecobank Group and the African Development Bank last week signed a $200 million Trade Finance Facility to bolster its trade finance capabilities on the continent.The facility was signed at an official ceremony held during the AfDB Annual General Meeting in Kigali by Mr Albert Essien, Ecobank’s Group chief executive and Mr Alex Rugamba, an AfDB director.

The facility comprises two components, a $100 million unfunded risk-sharing facility to bolster Ecobank’s capacity as an international confirming bank for trade transactions originated by issuing banks in Africa. Another $100 million trade facilitation loan which will be used by Ecobank to provide trade finance support to local corporates and Small to Medium Enterprises in Africa.

Over a period of three and half years, the facility will support approximately $1,8 billion of trade transactions in Africa.

“This facility will greatly support international and intra-regional trade in Africa,” said Mr Essien. “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 : The Herald