The Board of Directors of the African Development Bank (AfDB) has approved the sum of $310 million trade finance loan for Ecobank Transnational Incorporated, parent company of the Ecobank Group.
The intervention comes at a time of falling commodity prices which has 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 Sub Saharan Africa.
In a statement, AfDB said that the facility will provide critical trade finance funding to support economies in which Ecobank is present, primarily through support to SMEs and local companies involved in import-export activity.
According to the development bank, 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.
“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,” the bank said.
Ecobank Transnational Incorporated is registered and headquartered in Lomé, Togo, as a pan-African bank holding company. It has presence in 36 African countries, and has representative offices in Beijing, Dubai, Paris and London.