African Development Bank Group’s Post

On Risk Participation Agreements and how they help reduce constraints for local banks promoting intra-African trade.

African Development Bank Group Partners with Standard Bank Group. Big news for Africa’s economy! The African Development Bank Group has just approved two key facilities for Standard Bank to strengthen trade and empower #SMEs: $200 Million Trade Finance Facility: Helping local banks support businesses, close trade finance gaps, and boost intra-African trade. ZAR 3.6 Billion Social Bond: A groundbreaking initiative to fund SME lending in South Africa, listed on the Johannesburg Stock Exchange. This partnership is all about driving real impact. As Solomon Adegbie-Quaynor, the Bank’s Vice President for Private Sector, said: “We’re committed to creating opportunities for Africans to thrive by supporting SMEs and sustainable trade." Kenny Fihla from Standard Bank agrees: “This is a game-changer for SMEs and trade finance, helping us move closer to financial inclusion across the continent." It’s part of the African Development Bank’s Ten-Year Strategy (2024–2033) to build a more prosperous, integrated #Africa. #AfricaRising #SMEFinance #SustainableGrowth #TradeInnovation

AfDB Group to extend facilities worth US$ 200mln and ZAR 3.6bln to Standard Bank Group to increase trade in Africa and support SMEs https://lnkd.in/djCmDYVU - The Cooperator News PRETORIA, December 13, 2024 — The Board of Directors of the African Development Bank Group [AfDB] has approved two financial facilities for South-Africa based Standard Bank Group to support economic development in Africa. The first is a US$ 200 million trade finance risk participation agreement [RPA] for Standard Bank of South Africa Limited; the second is a ZAR 3.6 billion investment in a social bond issued by the Standard Bank Group [SBG]. The partnership will bolster Standard Bank Group’s capital, increase support for small and medium-sized enterprises [SMEs] in South Africa and expand trade across the African continent. The social …

Standard Bank Group has signed an agreement with the IFC - International Finance Corporation to expand local currency lending and accelerate development projects across Africa. Kayode Solola, Head, Global Markets Africa Regions at Standard Bank Group says: “Driven by positive market reforms and attractive returns, global investors have shifted their gaze to Africa. There is also growing interest in sub-Saharan countries with investors recognising the continent’s potential. The agreement with IFC further entrenches Standard Bank’s ability to make a real difference in the countries in which we operate, allowing deeper participation of local stakeholders in their own economy.” Read more: https://lnkd.in/dGnHqcQk #africa

The Standard Bank Group has signed an agreement with the International Finance Corporation (IFC) to expand local currency lending and accelerate development projects across Africa. 

EIB Finance in Africa 2024: Fintech Growth, Climate Challenges, and Gender-Responsive Banking Amid High Funding Costs #EIB #africa #finance #fintech #economy https://lnkd.in/gGeVKp3p

++ Crown Agents Bank and Invest Africa Ltd Launch ‘The Payments Exchange’ for Africa’s Economic Transformation ++ Crown Agents Bank, the specialist provider of foreign exchange (FX) and cross-border payments for hard-to-reach markets, and Invest Africa, a leading platform for business and investment opportunities in Africa, announces a new collaboration, ‘The Payments Exchange’. The campaign will drive new insight and understanding around the role of FX and payments in the economic transformation of Africa. It will also comprise a programme of events and content across 2024, that explores the integral role that payments and FX will play in realising the ambitions of the African Continental Free Trade Agreement and future trade and investment. "In partnership with Invest Africa, Crown Agents Bank is proud to launch The Payments Exchange Series, catalysing dialogue and action to empower Africa’s economic evolution through optimised payments infrastructure. Together, we will pave the way for inclusive growth, facilitating financial access and fostering investment opportunities across the continent." - Chris Partridge, Head of Banks & NBFIs, Crown Agents Bank "At Invest Africa, we recognise the pivotal role that payments infrastructure plays in driving economic growth and investment across the continent. Through our collaboration with Crown Agents Bank, we are committed to amplifying the conversation around payments, fostering collaboration, and championing initiatives that will enhance financial inclusion and enable businesses to thrive in Africa." - Chantelé Carrington, CEO, Invest Africa Ltd #techafricanews #africa #economic #transformation #investment #opportunities #collaboration #inclusion #payment

Afreximbank has disbursed a US$40-million Intra-African Investment Facility to Fidelity Bank Nigeria Plc. This funding will support Fidelity Bank’s acquisition and recapitalization of Union Bank UK, marking a significant step in its international expansion. The facility, provided in two tranches of US$20 million each, has already enabled Fidelity Bank to refinance the acquisition of 100% equity in Union Bank UK and to inject additional equity into the acquired bank, as approved by UK regulators. Mrs Kanayo Awani, EVP of Afreximbank’s Intra-African Trade Bank, highlighted that “Fidelity Bank’s acquisition of Union Bank UK aligned with Afreximbank’s Intra-African Investment Facility. It was a significant milestone for both institutions, reinforcing African ownership and control within the global financial landscape…By supporting this strategic transaction, we are not only bolstering Nigeria’s banking sector but also fostering greater financial integration between Africa and its Diaspora. “ For more on the facility, visit: https://lnkd.in/ePVu9DMV #Afreximbank #FidelityBank #IntraAfricanTrade #Agenda2063

Finance in Africa 2024 The European Investment Bank’s annual Finance in Africa report was published today. It addresses critical topics across the banking and financial sectors. Some of the key messages are below.   Availability of finance Following a difficult 2023, financial market conditions have improved somewhat in 2024 and banks are enjoying strong profitability. However, access to finance remains a huge barrier to investment and industrialisation. Private sector credit declined from 56% of GDP in 2007 to 36% of GDP in 2022 in sub-Saharan Africa. Climate Many banks report that climate has had a limited impact on asset quality, often because they have low exposure to agriculture, the sector most impacted by climate risk. Moreover, about half of banks are weakly engaged on climate. These banks are less likely to offer green finance products compared to the other half of banks which are highly engaged on climate. Financial inclusion The share of adults in Africa with access to financial services continues to grow. This is driven by access to digital financial services. The fintech sector has expanded rapidly, with the number of active fintech companies reaching 1,263 in 2024, up from 450 in 2020. Gender lending The share of banks with a gender strategy was 72% in 2024, with another 17% planning to introduce one. Banks continue to report better loan performance among female-led firms, with nearly 70% of banks observing lower rates of non-performing loans for these businesses. Once again, a huge debt of gratitude is owed to all those who worked on the report, both internally and in partner institutions. A great team effort! Thank you. Finance in Africa: Unlocking investment in an era of digital transformation and climate transition https://lnkd.in/eh4q64hf

Finance in Africa -2024. Everything you want to know. Stabilising but still tight financing conditions, climate change risks increasingly perceived, but still capacity to address them to be developed. Digitalization in financial services, gender and more. European Investment Bank (EIB)