ETI, Afreximbank Sign Pact to Promote Trade and Investment
Ecobank Transnational Incorporated (ETI), parent company of the Ecobank Group and African Export-Import Bank (Afreximbank) have signed a Memorandum of Understanding (MoU) to promote joint corporate objectives through the financing of private sector projects and trade finance transactions. The focus will be particularly on transactions involving trade and investment in Afreximbank member countries where Ecobank also has a presence.
The initiatives envisaged include the creation of a $500 million programme dedicated to financing trade among Afreximbank member countries where Ecobank conducts banking business. In a filing at the Nigerian Stock Exchange (NSE) made available yesterday, ETI said the cooperation between the two institutions will support efforts at promoting intra African trade, facilitating industrial development and export development, and strengthening African trade finance leadership, with the ultimate goal of transforming the African continent. “Under the agreement, Afreximbank and Ecobank will design joint inno- vative and tailor-made financial instruments and solutions to support private sector corporate and select strategic public sector institutions, as well as small and medium enterprises (SMEs).
This will enable the companies to participate effectively in the production of value added goods and services in national, regional and continental value chains. The two institutions will also explore other cooperation in financing trade operations in the form of exports and imports among African countries where Ecobank is present. Commenting on the development, ETI Chief Executive Officer, Ade Ayeyemi said: “We welcome this win-win collaboration between Ecobank and Afreximbank. It is cooperation that will lead to a more efficient way of channelling trade finance towards supporting growth of intra-African trade and industrialisation. Inadequate access to trade finance remains one of the greatest obstacles to Africa’s economic development.”
Speaking in the same vein, President of Afreximbank, Dr. Benedict Oramah said: “This collaboration with Ecobank opens up more opportunities for African businesses to access much-needed financing for their trading activities.