A US$50 million trade-finance facility has been created to help support Africa’s economic recovery amid the adverse effects of the COVID-19 pandemic on markets.

The facility is expected to help strengthen financial support for local banks and businesses by promoting the import of essential goods, commodities and capital equipment, and help expand access to goods and services.

It could potentially generate between US$70 million and US$140 million in additional trade annually.

The partnership – between Ecobank International, the Paris subsidiary of Togo-based Ecobank, and the CDC Group, the UK’s Development Finance Institution, which is providing the facility – will increase economic opportunities and promote inclusive growth in countries such as Togo, Burkina Faso and Chad, taking advantage of Ecobank’s footprint print across 33 countries on the continent.

The trade-finance risk-sharing facility will support the liquidity needs of local banks, while the CDC will provide further credit support and trade finance in order to preserve commerce.

20 July 2021
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