An approval of $50 million and EUR 50 million Trade Finance Transaction Line of Credit for the ECOWAS Bank for Investment and Development (EBID) has been made by the Board of Directors of the African Development Bank Group (AfDB).
The approved funds seek to enhance food security and boost the product life cycle of agriculture in the region.
A statement released following the Board’s approval disclosed that 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 statement issued further indicated that the three-and-a-half-year facility will be used by EBID to provide direct financing to local corporates. Part of the facility will also be distributed through selected local banks for on-lending to key sectors such as agriculture, infrastructure, and transport. “Small and medium-sized businesses (SMEs), local enterprise cooperatives, and farmers in the West African region will be the ultimate beneficiaries,” it stated.
AfDB Discloses Its Readiness To Support EBID
Speaking after the Board’s approval, the Deputy Director General for the West Africa Region, Joseph Ribeiro noted that regional development finance institutions like ECOWAS Bank for Investment and Development (EBID) are key partners of the African Development Bank and as well serve markets and client segments critical to the overall development of the continent.
Mr. Ribeiro divulged that 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.
“AfDB plays 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.”
Joseph Ribeiro
Mr. Lamin Drammeh, the African Development Bank’s Head of Trade Finance, emphasized on the critical need for such support in the region.
Mr. Drammeh mentioned AfDB’s excitement to work with EBID to increase access to trade finance in the ECOWAS region with a special focus on the agriculture value chain, SMEs and women-owned businesses.
“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.”
Lamin Drammeh
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.
With AfDB’s mission to help reduce poverty, improve living conditions for Africans and mobilize resources for the continent’s economic, social and agricultural development, the bank communicated its availability and willingness to give its maximum support to EBID for the successful utilization and implementation of the funds to boost the agricultural sector.
EBID has a mandate to contribute to the sustainable development of its member countries through financing of regional and national (public and private) projects in agriculture, rural development and environment, infrastructure and basic amenities, social sector support, agro-industry and provision of financial services.
Read More : Government Invest GH¢660m To Promote 2023 PFJ Programs
