CDC Group, the UK’s Development Finance Institution and impact investor, has announced a USD 50 million trade finance facility for Ecobank International (EBI SA).
EBI SA was created in Paris in 2008 as a spearhead for the international development of the Ecobank group and become a reference in the financing of international trade and the management of financial flows between Africa and the rest of the world.
The Covid-19 crisis has had a significant adverse effect on trade flows, business operations, and jobs in Africa’s markets.
This first partnership between CDC and Ecobank is aimed at providing systemic liquidity to underserved markets and crucial trade finance support to local banks and businesses across Africa.
The CDC facility will support the continent’s economic recovery and is expected to generate between USD70-140 million in additional trade annually.
The investment will enhance the import of essential goods, commodities, and capital equipment, while also helping to expand access to goods and services in general.
CDC explains that EBI SA is an ideal partner to boost its impact across Africa and help strengthen financial support for local banks and the businesses that they serve.
With the Ecobank Group’s extensive footprint and operations across 33 countries on the continent, the facility will broaden economic opportunities and inclusive growth.
The trade finance risk-sharing facility will meet the liquidity needs of local African banks at a crucial time especially with the economic impact of the pandemic.
Admir Imami, Director, Head of Trade & Supply Chain Finance, CDC Group, said: “Our partnership with Ecobank presents an opportunity for CDC to provide trade support where it is most needed. Keeping trade flowing across the continent is a key objective in CDC’s Covid-19 response, and we are thrilled that our patient capital can support businesses that are at the center of economic activities in our markets. We remain committed to playing our part in closing the trade finance gap in Africa, by helping to facilitate business and job growth, and building resilience for the long term.”
Akin Dada, Ecobank Group Executive Corporate and Investment Banking, said: “Our partnership with CDC to enhance finance and capacity comes at a crucial time in Africa’s history with much-needed recovery from the challenges of Covid-19 and the immense trade and investment opportunities being created by the African Continental Free Trade Area. We welcome the opportunity to work with development finance institutions such as CDC to help realise Africa’s potentials and sustainably drive its economic development.”
Jean Erwin NIZET, Ag. Managing Director at EBI SA, said: “This partnership with CDC will allow EBI SA to provide further support for African trade. In this challenging Covid-19 environment, this represents an important step in increasing Ecobank’s trade capacity and better serve its clients in Africa. This will ensure that Ecobank continues to contribute to the creation of value and sustainable growth across the continent.”