The agreement includes the creation of a $500 million programme for financing trade among Afreximbank member countries where Ecobank also conducts its business.
Benedict Oramah, President, African Export-Import Bank
The African Export-Import Bank and the Ecobank Transnational Incorporated have signed a memorandum of understanding aimed at financing private sector projects and trade finance transactions that enhance intra-Africa trade, according to a statement released on Tuesday.
Under the agreement, Afreximbank and Ecobank said they will jointly design financial instruments to enable companies, strategic public sector institutions, and small and medium enterprises (SMEs) participate seamlessly in the production of goods and services in national, regional and continental value chains.
"Inadequate access to trade finance remains one of the greatest obstacles to Africa's economic development," said 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 at the opportunity to work with a Pan-African financial institution like Ecobank to deliver on our shared goal of enhancing access to trade finance in Africa."
The initiatives envisaged under the agreement include the creation of a $500 million programme dedicated to financing trade among Afreximbank member countries where Ecobank also conducts its business. The two organizations said they will also explore cooperation in financing trade operations among African countries where Ecobank alone is present. The projects under the agreement will be eligible for Afreximbank's interventions through co-financing, syndication of loans, risk participation, etc.
The cooperation between Afreximbank and Ecobank is aimed at promoting intra-Africa trade, facilitating industrial development and export development, and strengthening African trade finance leadership, with the ultimate goal of transforming the African continent.
"We welcome this win-win collaboration between Ecobank and Afreximbank," said Ade Ayeyemi, Ecobank's Group CEO. "It is cooperation that will lead to a more efficient way of channelling trade finance towards supporting growth of intra-Africa trade and industrialisation."