African Development Bank And Trade And Development Bank (TDB) Group Strengthen Trade Finance Partnership Through A Trade Finance Unfunded Risk Participation Agreement
African Development Bank Group (African Development Bank Group)African Development Bank website) and the Trade and Development Bank of Eastern and Southern Africa (TDB Group) signed a trade finance risk-free risk participation agreement (RPA) loan agreement worth US$150 million. The agreement was reached during the Africa Investment Forum in Rabat, Morocco.
RPA aims to promote intra-African trade, promote regional integration and contribute to closing the trade finance gap in Africa. The facility will provide guarantees of 50% to 75% for transactions in low-income countries (LICs) and countries in transition. The facility is expected to support approximately $1.8 billion in trade over the next three years.
TDB Group offers customized trade finance solutions such as import and export finance, structured commodities finance, pre- and post-shipment finance, issuance of letters of credit, guarantees and bonds, and supplier-centric working capital solutions. The beneficiaries of this mechanism are local and regional issuing banks in TDB Group member countries, as well as African SMEs who rely on these issuing banks to fulfill their trade finance commitments.
“TDB Group is pleased to strengthen its strategic partnership with the African Development Bank Group through a bespoke risk-sharing mechanism aimed at scaling up trade finance. As major international banks continue to withdraw from the continent, this important support will help narrow the scope of trade There is a huge gap in access to finance,” said Wegoki Mugeni, chief operating officer of TDB Group in Nairobi.
Attout Ahmed, Director of Financial Sector Development at the African Development Bank, added: “We are delighted to be working with TDB Group, a strong partner with extensive knowledge and networks in Africa, and we share the goal of supporting trade in the region.
“Supporting African trade is a top priority for the African Development Bank. Trade finance is an important driver of economic growth and is critical for cross-border trade, especially in emerging markets.”
TDB Group’s focus on key economic sectors such as agriculture, infrastructure, energy, construction and manufacturing is consistent with the African Development Bank’s ten-year strategy to promote trade and economic growth and its three strategic priorities “Feed Africa; Feed Africa”. ” “African Industrialization” and “African Integration”.
Distributed by APO Group on behalf of the African Development Bank Group (AfDB).
Media Contact:
African Development Bank Group
Romanik Olo Sheen
Department of Communications and External Relations
media@afdb.org
Trade Development Council:
Anne Marie Iskandar
senior communications officer
Anne-Marie.Iskandar@tdbgroup.org
About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It consists of three different entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). The bank operates in 41 African countries and has an external office in Japan, contributing to the economic development and social progress of its 54 regional member countries. For more information: African Development Bank website
