Ecobank gets $35m risk-sharing facility from AfDB for affiliates

A $35 MILLION UNFUNDED risksharing facility has been made available to Ecobank International affiliates, EBI SA, by the African Development Bank (AfDB), after the AfDB board of directors gave its approval.

The facility is to support trade financing activities in Africa, according to a statement by Kwasi Kpodo of the communication and external relations department of the AfDB.

Stefan Nalletamby, director for financial sector development, AfDB, is quoted as saying the renewal of the partnership with Ecobank, a pan-African bank and holding company, comes at a time when most African issuing banks are battling with the negative impacts of the COVID-19 pandemic.

“Institutions are facing severe constraints in obtaining adequate facilities from international banks to support African small businesses and local corporates involved in international trade.

“The facility will support more than 50 issuing banks operating in 35 African countries and is projected to catalyse close to $300 million worth of trade transactions over a threeyear period,” he said.