A $50 million and EUR 50 million dual-currency trade finance line of credit for the ECOWAS Bank for Investment and Development (EBID) has been approved by the Board of Directors of the African Development Bank Group.
The People's Bank of China (PBOC) will provide an extra $30 million in co-financing for the credit line via the Africa Growing Together Fund (AGTF).
The three-and-a-half-year facility will be used by EBID to offer direct finance to regional corporations. A portion of the facility will also be distributed through a chosen group of local banks for further lending to vital industries like transportation, infrastructure, and agriculture. Small and medium-sized businesses (SMEs), local enterprise cooperatives, and farmers in the West African region will ultimately benefit.
In a press release issued following the Board's approval, Joseph Ribeiro, the Deputy Director General for the West Africa Region, noted that regional development finance organisations like EBID are important allies of the African Development Bank and target markets and clientele crucial to the continent's overall development.
Mr. Joseph says the Bank is crucial in encouraging trade and regional integration and that, the Bank is providing EBID with its first funding support, which they expect an even greater partnership in the coming future.
“They play an important role in promoting trade and regional integration. This is the Bank’s first financing support to EBID, and we look forward to an even stronger partnership in the near future,” he said.
Lamin Drammeh, the Bank's Head of Trade Finance, emphasised the urgent need for such assistance in the area.
He says the ECOWAS region is eager to cooperate with EBID to enhance access to trade finance with a special focus on the agriculture value chain, SMEs, and women-owned firms.
“Regional institutions like EBID complement the Bank’s efforts to bridge the trade finance gap in Africa and serve as an effective conduit for channeling much-needed funds to underserved countries and sectors”, he said.
The African Development Bank estimates the annual trade finance gap for Africa to be around $81 billion. Compared to multinational corporates and large local corporates, SMEs and other domestic firms have greater difficulty in accessing trade finance.
Latest Stories
-
Which will you vote for in 2024 Election: Honesty, Character, or Campaign Promises?
3 hours -
The ball is in Iran’s court after US pressure pays off
3 hours -
‘Japa’ sweeps Nigeria’s hospitals
4 hours -
Obuasi: Catholic Voices GH choral peace concert unites NPP, NDC
4 hours -
Lordina Supports NDC campaign in Ketu North with donation of medical equipment to Afife Health Centre
4 hours -
MTN Foundation delivers crucial technology tools to Eastern Regional Hospital
4 hours -
Galien Forum Africa: Enhaning African women’s role in climate and environmental crises
10 hours -
7th Galien Africa Forum ends with emphasis on health, innovation, and climate action in Africa
10 hours -
Ruthless Barcelona thrash Real Madrid to go 6 points clear
10 hours -
National Farmers’ Day scheduled for November 8
11 hours -
Samson’s Take: Why over 75% vote but only 5% join protests
12 hours -
Krachi East Chiefs applaud Bawumia for campaigning on issues with evidence
13 hours -
National Security Ministry dismisses Reuters’ claims that militants are using Ghana as logistical base
13 hours -
BOST and its CEO win big at 8th Ghana Energy Awards
14 hours -
Accused person in protest over alleged $3m BOST scandal discharged
15 hours