Ecobank Group, Afreximbank to increase access to trade finance
BY NDUMBE BELL GASTON IN DOUALA
Joint corporate objectives by financing of private sector projects and trade Finance transactions in Afreximbank members states where Ecobank is operational, is now overly possible as product or result of a memorandum of understanding (MoU) signed by Ecobank Transnational Incorporated (parent company of the Ecobank Group) and the African Export-Import Bank also known as Afreximbank.
The ties between them will support efforts at promoting intra-African trade, facilitate industrial development, export development and strengthen African trade finance leadership, with the ultimate goal of transforming the continent.
In one of the clauses Ecobank 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 or medium enterprises or SMES. This will enable them to participate effectively in the production of value added goods and services in national, regional and continental value chains.
The creation of US$ 500 million program is in the works with the intention to finance trade among Afreximbank members countries where Ecobank is operational. Both parties hope to explore other cooperation ties in financial trade operations in the form of exports and imports among African countries especially operations which are eligible for Afreximbank’s interventions through co-financing syndication of loans, risk participation or through any other appropriate mode of cooperation.
Ecobank Group CEO Ade Ayeyemi welcomed “this win-win collaboration between us. It is cooperation that will lead to a more efficient way of channelling trade finance towards supporting growth of intra-African trade and industrialisation.”
“Inadequate access to trade financing remains one of the greatest obstacles to Africa’s economic development said Dr. Benedict Oramah, President of Afreximbank <this collaboration with Ecobank opens up more opportunities for African businesses to access much-needed financing for their trading activities. We are very proud…to deliver on our shared goal of enhancing access to trade finance in Africa.”