CDC Group has announced a Ksh. 5.4 billion ($50 million) trade finance facility with Ecobank International (EBISA), the Paris based member of the Ecobank Group, for supporting businesses in Africa. This marks CDC’s first partnership with EBISA aimed at providing systemic liquidity to underserved markets and trade finance support to local banks and businesses across Africa.
With the adverse effects on trade flows caused by the COVID-19 pandemic, this CDC facility will support Africa’s economic recovery and is expected to generate income in additional trade annually. The investment will enhance the import of essential goods, commodities and capital equipment, while helping to expand access to goods and services in general.
EBISA, the international subsidiary of Ecobank Group has been viewed as an ideal partner to boost CDC’s impact across Africa and help strengthen financial support for local banks and the businesses they serve. With Ecobank’s extensive operations across 33 countries in Africa, the facility will broaden economic opportunities and inclusive growth, particularly in markets such as Togo, Burkina Faso and Chad.
Commenting on the facility, Admir Imami, Director, Head of Trade and 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 that are at the centre of economic activities in our markets.”
On his part, Jean Erwin Nizet, Ag. Managing Director at EBI SA, said, “This partnership with CDC will allow EBISA to provide further support for African trade. In this challenging COVID-19 environment, this represents an important step in increasing Ecobank’s trade capacity and better serve its clients in Africa. This will ensure that Ecobank continues to contribute to the creation of value and sustainable growth across the continent.”