Africa

CDC Group Announces $ 50 Million Trade Finance Service With Ecobank As Part Of Its Covid-19 Response

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CDC Group Announces $ 50 Million Trade Finance Service With Ecobank As Part Of Its Covid-19 Response

Provides systemic liquidity and supports vital supply chains in African markets; Maintains and increases access to goods and services during the pandemic; It reinforces economic opportunities and inclusive growth in markets such as Togo, Burkina Faso and Chad.

CDC Group, the UK’s Development Finance Institution and impact investor, has announced a $ 50 million trade finance facility for Ecobank International (EBI SA), the Paris-based member of the Ecobank Group.

This marks CDC’s first partnership with EBISA with a commitment to providing systemic liquidity to underserved markets and crucial commercial financial support for local banks and businesses across Africa.

The Covid-19 crisis has had a significant adverse effect on trade flows, business operations, and employment in African markets. This CDC facility will support the continent’s economic recovery and is expected to generate between $ 70 million and $ 140 million in additional trade annually. The investment will improve the importation of essential goods, commodities and capital equipment, while helping to expand access to goods and services in general.

EBI SA, the international subsidiary of the Togo-based Ecobank Group, is an ideal partner to drive CDC’s impact in Africa and help strengthen financial support for local banks and the businesses they serve. With the broad presence and operations of the Ecobank Group in 33 countries on the continent, the facility will expand economic opportunities and inclusive growth, particularly in markets such as Togo, Burkina Faso and Chad.

The risk-sharing mechanism of trade finance will meet the liquidity needs of local African banks at a crucial time, especially with the economic impact of the pandemic. By committing capital to address these shortcomings, CDC takes additional risks and provides more credit support and lines of commercial finance to local banks, thus protecting commerce across the continent.

The facility contributes to the UN Sustainable Development Goals Zero Hunger (SDG 2) and Decent Work and Economic Growth (SDG 8).

Admir Imami, Director, Head of Supply Chain Trade and Finance, CDC Group, said: “Our partnership with Ecobank presents an opportunity for CDC to deliver business support where it is most needed. Keeping trade flowing across the continent is a key goal in the CDC’s Covid-19 response, and we are delighted that our patient capital is able to support businesses that are at the center of economic activity in our markets. We remain committed to playing our role in closing the trade finance gap in Africa, helping to facilitate business and job growth, and building long-term resilience. “

Akin Dada, corporate and investment banking executive at Ecobank Group, said: “Our partnership with CDC to improve finances and capacity comes at a pivotal moment in African history with a much-needed recovery from the challenges of Covid-19 and the immense trade and investment opportunities that the Free Trade Area is creating. African Continental. We welcome the opportunity to work with development finance institutions like CDC to help realize Africa’s potential and sustainably drive its economic development. “

Jean Erwin NIZET, Ag. General Director of EBI SA, said: “This partnership with CDC will allow EBI SA to further support African trade. In this challenging Covid-19 environment, this represents an important step in increasing Ecobank’s business capacity and better serving its customers in Africa. This will ensure that Ecobank continues to contribute to value creation and sustainable growth across the continent. “

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