African Export-Import Bank (Afreximbank) and Ecobank Group have signed a memorandum of understanding (MoU) to finance trade transactions and private sector projects in Afreximbank member states where Ecobank conducts banking business.
The understanding between the two banks will boost trade finance leadership, intra-African trade, industrial and export development in order to transform Africa.
With the MoU, both financial institutions will design joint innovative and tailor-made financial instruments and solutions to support private sector corporates and select strategic public sector institutions, as well as small and medium-sized enterprises (SMEs).
The MoU also contains the creation of US$500 million initiative designed for trade financing among Afreximbank member states where Ecobank is present. The two institutions will also explore other cooperation in financing trade operations through co-financing, a syndicate of loans and risk participation.
Speaking on this agreement, the Ecobank Group CEO Ade Ayeyemi said, "we welcome this win-win collaboration between Ecobank and Afreximbank. It is cooperation that will lead to a more efficient way of channelling trade finance towards supporting growth of intra-African trade and industrialization."
"Inadequate access to trade finance remains one of the greatest obstacles to Africa's economic development. This collaboration with Ecobank opens up more opportunities for African businesses to access much-needed financing for their trading activities. We are very proud at the opportunity to work with a Pan-African financial institution like Ecobank to deliver on our shared goal of enhancing access to trade finance in Africa" said Dr. Benedict Oramah, President of Afreximbank.