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Business Reporter

THE African Development Bank has approved a $310 million trade finance loan facility for Ecobank Transnational Incorporated, parent company of the Ecobank Group.The facility will provide critical trade finance to support the economies where Ecobank operates.Ecobank is registered and head-quartered in Lomé, Togo. It operates in 36 African countries, including Zimbabwe, and has representative offices in Beijing, Dubai, Paris and London.

The 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 to support ongoing structural changes in the respective economies in the sub-Saharan Africa.

Through the Ecobank branch network across Sub-Saharan Africa, the facility will mainly support small and medium enterprises and local companies involved in exports.

“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,” said AfDB.

“It will foster financial sector development, provide a platform to support intra-Africa and regional trade and support financing of medium term infrastructure projects, creating robust industries and employment opportunities for youth. It will enhance support to local enterprises in Sub-Saharan Africa, whose trading activities are being constrained by shortages in dollar funding. When fully utilised, including roll-overs, the interventions are expected to facilitate circa $2 billion of trade over a three and a half-year period.”

AfDB said the facility will contribute to the attainment of AfDB’s five operational priorities — its “High 5s” namely: Light up and power Africa, Feed Africa, Industrialise Africa, Integrate Africa and Improve the quality of life for the people of Africa. The project also aligns with AfDB’s 10-year strategy, particularly the Bank’s Financial Sector Development Strategy, which seeks to increase access to financial services for the under-served and broaden and deepen Africa’s financial systems. It also aligns with the AfDB’s Private Sector Strategy by contributing to the improvement of the investment and business environment in Sub-Saharan Africa, subsequently promoting regional trade.

Further, it will promote enterprise development through increased access to appropriate levels of trade finance for small and medium enterprises and local corporates.

ETI’s shares are listed on the Ghana Stock Exchange, the Nigeria Stock Exchange and the Bourse Régionale des Valeurs Mobilières serving countries of the West African Economic and Monetary Union.