AfDB grants $310m to Ecobank to boost trade finance in Africa
Ecobank has a presence in 36 countries.The African Development Bank (AfDB) has granted a $310 million loan to Ecobank to provide trade finance funding in the 36 countries where the pan-African bank is present.
It said the facility would foster financial sector development, provide a platform to support intra-Africa and regional trade, support financing of medium term infrastructure projects and enhance support to local enterprises.
This intervention comes at a time of falling commodity prices, which have caused shortages in foreign exchange supply and led to unmet demand for trade finance instruments.
"Through the Ecobank branch network across Sub-Saharan Africa, the project will mainly support small and medium-sized enterprises and local companies involved in import export activity," the AfDB said in a statement.
"The project will help address critical market demand for trade finance and dollar liquidity by supporting vital economic sectors such as agri-business, chemicals, construction, engineering, food processing, manufacturing and non-traditional exports."
According to estimates, the project will facilitate around $2 billion of trade over a three and a half-year period.