Aby Agina’s Post

Banks sign partnership agreement to strengthen trade finance in Africa https://lnkd.in/egwyEEs4 - The Cooperator News RABAT, December 7, 2024 — The African Development Bank [AfDB],  and the Eastern and Southern African Trade and Development Bank [TDB] have signed an agreement for a US$ 150 million Trade Finance Unfunded Risk Participation Agreement [RPA] facility. The agreement was concluded on the sidelines of the African Investment Forum in Rabat, Morocco. The RPA aims at bolstering intra-Africa trade, promoting regional integration, and contributing to the reduction of the trade finance gap in Africa.  The facility will provide guarantee cover of 50 percent and up to 75 percent for transactions in Low-Income Countries [LICs] and transition states. The facility …

Excited to continue deepening our relationship with African Development Bank Group as TDB aims to leverage on this agreement to catalyse an estimated $1.8 billion in trade finance across Africa.

It goes without saying but bears repeating: The Africa trade finance gap needs as much funding as it can get. I speak to this in my interview with CNBC on the recent signing of BII’s US$150m Trade Liquidity Program with Absa. #bii #absa #TradeFinance #AfricaTrade #TradeGap #Africa #AfCFTA https://lnkd.in/dVh_YRm7

++ African Development Bank Group and Trade and Development Bank Group - TDB Group Sign $150M Facility to Boost Africa’s Trade Finance ++ The African Development Bank Group and the Eastern and Southern African Trade and Development Bank (TDB Group) have signed an agreement for a $150 million Trade Finance Unfunded Risk Participation Agreement (RPA) facility. The agreement was concluded on the sidelines of the African Investment Forum in Rabat, Morocco. "TDB Group is delighted to strengthen its strategic partnership with the African Development Bank Group through tailored risk-sharing facilities aimed at scaling up trade finance. This crucial support will help bridge the significant gaps in trade finance access as major international banks continue retreating from the continent." – Wegoki Mugeni, Chief Operating Officer in Nairobi, TDB Group "We are delighted to work with TDB Group, a strong partner with extensive knowledge and network in Africa, on a shared ambition to support the region’s Trade. Supporting Trade in Africa is a key priority at the African Development Bank. Trade finance is an important driver of economic growth and is critical for cross-border trade particularly in emerging markets. TDB Group’s focus on critical economic sectors such as agriculture, infrastructure, energy, construction, and manufacturing align with the African Development Bank’s Ten-Year Strategy to promote trade and economic growth, and three of its High-5 strategic priorities of “feed Africa;” “Industrialize Africa” and “integrate Africa.” – Ahmed Rashad ATTOUT, Director of the Financial Sector Development Department, African Development Bank #techafricanews #africa #trade #finance #economic #sector #development #border #trade #infrastructure #growth

What we're reading: '(T)he trade finance gap in developing markets continues to worsen. In our view, an on-the-ground understanding of developing market MSMEs and their constraints, obtaining practical legal and IT help, liquidity, capital, grants and international collaboration are key to solving the problem.' #Africa #trade #tradefinance #SME #MSME #tradefinancegap

++ African Development Bank Group Approves $40M Guarantee Facility to Boost Dashen Bank’s Trade Finance in #Ethiopia ++ The Board of Directors of the African Development Bank Group has approved a $40 million transaction guarantee facility to support Dashen Bank’s trade finance activities in Ethiopia. "Supporting Trade in Africa is a key priority at the African Development Bank. Trade finance is an important driver of economic growth and is critical for cross-border trade, particularly in emerging markets. We are delighted to work with Dashen, a strong partner with extensive knowledge and network in Ethiopia, on a shared ambition to support the region’s Trade." - Nnenna Nwabufo, Director General for East Africa, African Development Bank "After fulfilling the stringent due diligence requirements of the African Development Bank, we are so delighted that its Board of Directors has approved a trade finance transaction guarantee facility of $40 million. This much-needed guarantee facility will be instrumental in expanding our bank’s trade services across the region and beyond. The best practices learned through our engagement and the due diligence exercise passed with the continent’s premier development financier has been invaluable in pursuit of Dashen Bank’s strategic aspirations to be a best-in-class bank in Africa. We look forward to further strengthening our partnership and benefiting more from the resources and extensive capabilities of the African Development Bank and its partners, as we endeavor to support Ethiopia’s thriving small and medium enterprises in productive economic sectors, including agriculture and manufacturing." - Asfaw Alemu (CM), CEO, Dashen Bank #techafricanews #africa #ethiopia #bank #facility #trade #finance #resources #sme #economic #sector

African Development Bank and Trade and Development Bank (TDB) Group strengthen trade finance partnership through a Trade Finance Unfunded Risk Participation Agreement https://lnkd.in/eRe_TR4M

The African Development Bank Group and #TDBGroup on 6th December 2024 have signed an agreement for a USD 150 million Trade Finance Unfunded Risk Participation Agreement (RPA) facility. The agreement was concluded on the sidelines of the African Investment Forum #AIF Meetings in #Rabat, #Morocco. The RPA aims at bolstering #intraAfricantrade, promoting #regionalintegration, and contributing to the reduction of the #tradefinance gap in #Africa. Beneficiaries of this facility are local and regional issuing banks in TDB’s member states whose ability to grow #tradefinance business is constrained by inadequate trade confirmation lines from international confirming banks with reduced appetite. The second group of beneficiaries are African #SMEs and domestic firms who rely on these issuing banks to fulfil their trade finance commitments. “TDB Group is delighted to strengthen its strategic partnership with the AfDB Group through tailored risk-sharing facilities aimed at scaling up trade finance. This crucial support will help bridge the significant gaps in trade finance access as major international banks continue retreating from the continent,” said Wegoki Mugeni, TDB Group COO, East Africa.

The article by Sergio Pimenta - IFC published on Euromoney explores Africa’s trade finance challenges, especially for small businesses, which face issues like limited access to capital, high costs and foreign exchange volatility. Efforts from organisations such the IFC and AfDB aim to improve financing access by strengthening regulations and fostering partnerships to promote sustainable economic growth. These initiatives support innovation and capacity building, crucial for overcoming barriers to trade finance in Africa. Soha Abou Zikry - CIB summed up the current state of trade finance in Africa as “challenging, but with lot of potential”

What Small Businesses Need to Know About Trade Finance in Africa - https://lnkd.in/d4_8CFVy Development Bank and Making Finance Work for Africa (MFW4A) in collaboration with the Africa Regional Committee (ARC) of the International Trade and Forfaiting Association