United Kingdom’s Development Finance Institution and impact investor, CDC Group has announced a $50 million trade finance facility for Ecobank International (EBI SA), the Paris based member of the Ecobank Group.
The development marks CDC’s first partnership with EBI SA 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.
CDC facility is expected to support the continent’s economic recovery process and generate between US$70 – $140 million 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 impact of the pandemic.
The facility contributes to the UN Sustainable Development Goals Zero Hunger (SDG 2) and Decent Work and Economic Growth (SDG 8).
