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The African Development Bank (AfDB) and the Natixis Investment and Enterprise Bank have signed a $ 50 million Risk Participation Agreement to support trade finance in Africa.
The 50/50 risk-sharing agreement covers a portfolio of commercial transactions totaling $ 100 million, which will support $ 600 million worth of commercial transactions in Africa over the next three years.
"This historic agreement not only helps us better support our clients in Africa, but also strengthens the strategic relationships that we have the privilege of developing with the African Development Bank," said Marc Jaskowiak, Natixis Senior Banker, who said signed the agreement.
The APR will meet the growing demand for trade finance in African markets in key economic sectors such as agribusiness, health, services and industry.
In addition, it will promote diversification of the economy, generating growth, jobs and additional tax revenues for several African states.
The agreement will notably benefit African commercial banks and SMEs on the continent by guaranteeing them better access to financing for their foreign trade operations.
"The signing is important because it reflects our desire to develop financial partnerships with strong non-regional banks, boost trade finance in Africa and further support intra-African trade, as outlined in our trade finance program. approved in 2018, "said ADB Director of Financial Sector Development, Stefan Nalletamby.
"This agreement will allow us to extend our support to African SMEs, but also to local banks in French-speaking countries and some countries in transition."
— Myjoyonline
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