- Provides systemic liquidity and supports vital supply chains across Africa’s markets
- Sustains and increases access to goods and services during the pandemic
- Bolsters economic opportunities and inclusive growth, in markets such as Togo, Burkina Faso and Chad
CDC Group, the UK’s Development Finance Institution and impact investor, has announced a US$50million trade finance facility for Ecobank International (EBI SA), the Paris-based member of the Ecobank Group.
This marks CDC’s first partnership with EBISA, with the commitment aimed at providing systemic liquidity to underserved markets and crucial trade finance support to local banks and businesses across Africa.
The COVID-19 crisis has had a significant adverse effect on trade flows, business operations and jobs in Africa’s markets. This CDC facility will support the continent’s economic recovery and is expected to generate between US$70 – US$140million in additional trade annually. The investment will enhance the import of essential goods, commodities and capital equipment, while also helping to expand access to goods and services in general.
EBI SA, the international subsidiary of Togo-based Ecobank Group, is an ideal partner to boost CDC’s impact across Africa and help strengthen financial support for local banks and the businesses that they serve. With the Ecobank Group’s extensive footprint and operations across 33 countries on the continent, the facility will broaden economic opportunities and inclusive growth – particularly in markets such as Togo, Burkina Faso and Chad.
The trade finance risk-sharing facility will meet the liquidity needs of local African banks at a crucial time, especially with the economic impacts from the pandemic. By committing capital to address these shortfalls, CDC is taking on additional risk and providing further credit support and trade finance lines to local banks, thus protecting commerce across the continent.
The facility contributes to the UN Sustainable Development Goals Zero Hunger (SDG 2) and Decent Work and Economic Growth (SDG 8).
Admir Imami, Director-Head of Trade & Supply Chain Finance, CDC Group said: “Our partnership with Ecobank presents an opportunity for CDC to provide trade support where it is most needed. Keeping trade flowing across the continent is a key objective in CDC’s COVID-19 response, and we are thrilled that our patient capital can support businesses which are at the centre of economic activities in our markets.
“We remain committed to playing our part in closing the trade finance gap in Africa – by helping to facilitate business and job growth, and building resilience for the long-term.”
Akin Dada, Ecobank Group Executive-Corporate and Investment Banking said: “Our partnership with CDC to enhance finance and capacity comes at a crucial time in Africa’s history, with much-needed recovery from the challenges of COVID-19 and the immense trade and investment opportunities being created by the African Continental Free Trade Area. We welcome the opportunity to work with development finance institutions such as CDC to help realise Africa’s potentials and sustainably drive its economic development”.
Jean Erwin NIZET, Ag. Managing Director at EBI SA said: “This partnership with CDC will allow EBI SA to provide further support for African trade. In this challenging COVID-19 environment, it represents an important step in increasing Ecobank’s trade capacity and better serve its clients in Africa. This will ensure that Ecobank continues contributing to the creation of value and sustainable growth across the continent”.
CDC Group is the UK’s impact investor with over 70 years of experience in successfully supporting the sustainable, long-term growth of businesses in South Asia and Africa. The company is a leading player in the fight against climate change, and has committed more than US$1billion of climate finance over the last four years. CDC is also a founding member of the 2X challenge, which has raised US$10bn to empower women’s economic development.
The company has investments in over 1,000 businesses in emerging economies and total assets of US$9.3billion. In 2020, CDC committed over of US$1.5billion to businesses in Africa and Asia, and aims to invest up to US$1.75billion in 2021 – with a focus on driving inclusive growth, job creation and supporting economic recovery from COVID-19.
CDC is funded by the UK government and is a champion of the UN’s Sustainable Development Goals. All proceeds from CDC’s investments are reinvested to improve the lives of millions of people in Africa and South Asia. CDC’s expertise makes it an ideal partner for private investors looking to devote capital to making a measurable environmental and social impact in countries most in need of investment.
Ecobank Transnational Incorporated (ETI) is the parent company of the Ecobank Group, the leading independent pan-African banking group. The Ecobank Group employs over 14,000 people and serves about 29 million customers in the consumer, commercial and corporate banking sectors across 33 African countries.
The Group has a banking licence in France and representative offices in Addis Ababa, Ethiopia; Johannesburg, South Africa; Beijing, China; London, the UK; and Dubai, United Arab Emirates. Ecobank International (EBI SA) is a banking subsidiary of ETI established in 2008 to capture cross-border flows between sub-Saharan Africa and the rest of the world, build a stronger relationship with international financial institutions and corporate customers and centralised Group affiliates with EUR and USD denominated deposits and FX hedging needs. ETI is listed on the Nigerian Stock Exchange in Lagos; the Ghana Stock Exchange in Accra; and the Bourse Régionale des Valeurs Mobilières in Abidjan.