|Approval Date||21 Sep 2016|
|Signature Date||07 Dec 2016|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The project is an Ecobank Transnational Incorporated (ETI) Trade Finance Credit Facility (TF-LOC) for retrocession to its subsidiaries, with a particular focus on Ecobank Nigeria which represents around 53% of the Group's revenue in 2015. Indeed, ETI is the parent company of a pan-African banking group headquartered in Togo with the status of an international organization. The Ecobank Group is present in 36 African countries and is listed on the West African Stock Exchange and the Ghana and Nigeria Stock Exchanges. ETI will use the $ 310 million LOC to support the commercial financing operations of its affiliates and subsidiaries in 36 Regional Member Countries (RMCs) across the continent. In turn, these institutions will finance commercial instruments issued to SMEs and local companies engaged in import-export activities. The project will finance exports, including various types of pre- and post-shipment credits, as well as the import of capital goods, raw materials and essential items, including medical and educational materials.
The project aims to help reduce the trade finance gap in Africa and promote broader economic growth, job creation, increased intra-African trade and regional integration. Specifically, it will support the following activities: (i) trade in underserved areas, including agribusiness, manufacturing and energy production; (ii) the issuance of irrevocable repayment commitments for financial institutions of LICs, countries in transition and countries emerging from conflict; (iii) stable funding for SMEs operating in ETI's sphere of influence and support to microfinance institutions outside the ETI network. At the enterprise level, one of the objectives of the project is to consolidate progress with the existing facility, further expand access to trade finance and promote financial literacy in sub-Saharan Africa.
The main beneficiaries of the project are Ecobank Transnational Incorporated (ETI), Small and Medium Enterprises, AfDB’s Regional Member Countries.
African Development Bank
|Last Update||28 Oct 2020|