Trade Finance Program

18-Nov-2019

Africa Investment Forum 2019: African Development Bank signs $250-million risk participation agreement with ABSA, to address Africa’s trade financing gap

The African Development Bank has signed an unfunded $250-million Risk Participation Agreement (RPA) facility with ABSA - a pan-Africa financial institution with a solid presence in 12 African countries. The 3-year RPA facility was signed November 12, on the sidelines of the Africa Investment Form through its trade finance operations. Under this 3-year RPA facility, the Bank and ABSA will share default risk on a portfolio of eligible trade transactions originated by African Issuing Banks (IBs) and confirmed by ABSA. Leveraging the Bank’s  AAA rating, ABSA will underwrite trade...
20-Jun-2019

African Development Bank, MFW4A and BMZ/GIZ host International Workshop on Africa’s Trade Finance Market

The African Development Bank, Making Finance Work for Africa (MFW4A) and the German Cooperation (BMZ/GIZ) held a two-day international workshop in Frankfurt, Germany, to improve participants’ understanding of trade financing in Africa. The workshop, themed: “The Consolidation of International Correspondent Banking Relationships in Africa,” was attended by representatives of the main correspondent banks operating in Africa - Commerzbank, Deutsche Bank, Standard Chartered Bank, standard-setting bodies (FSB, SWIFT, GLEIF) and other international stakeholders. Its purpose was to discuss...
25-Apr-2019

African Development Bank signs $50 million agreement with Natixis to boost trade finance in Africa

The African Development Bank on Wednesday April 24, 2019 signed a US$50 million risk participation agreement (APR) with investment and corporate bank Natixis. The 50/50 risk-sharing agreement covers a portfolio of commercial transactions totaling US$100 million, which will support commercial operations worth US$600 million in Africa over the next three years. "This historic agreement allows us not only to better support our clients in Africa, but also to further strengthen the strategic relationship that we have the privilege of developing with the African Development Bank," said...
25-Apr-2019

South Sudan: African Development Bank, ATI support leads to US$ 27.62 million in commercial risk insurance cover

South Sudan has this month realised a record $27.62 million in commercial risk insurance cover through the efforts of the South Sudan government, the African Development Bank and the Africa Trade Insurance Agency (ATI). ATI has, to date, provided gross risk cover to facilitate investments in the electricity, gas, water supply and financial and insurance sectors. South Sudan is also expected to benefit from a $100 million trade facility from the Trade and Development Bank (TDB). The facility will focus on strategic commodities, budgetary support and other essential co-imports. It will...
10-Apr-2019

African Development Bank Board approves $4.8 million grant to accelerate African free trade

On 1 April 2019, the Board of the African Development Bank approved an institutional support grant of $4.8 million to the African Union (AU) to accelerate the momentum of the African Continental Free Trade Area Agreement (AfCFTA), which received its 22nd ratification on 2 April, bringing the agreement into force. The AfCFTA is a major force for continental integration. It will expand intra-African trade by up to $35 billion per year and usher in freedom of movement for goods, services and people across the continent’s internal borders, with a regime of reduced tariffs and non-tariff...
08-Jan-2019

African Development Bank approves US$14.12 million to support Nigeria’s membership in African Trade Insurance (ATI) Agency

The African Development Bank Group, through its Trade Finance operations, has approved a US$14.12 million facility to support the Federal Republic of Nigeria’s membership in the African Trade Insurance Agency (ATI). This is a critical and mandatory step to enable ATI commence its operations in Nigeria. Nigeria, as Africa’s largest economy, joins 14 other African countries that have already signed up to ATI membership. Once membership formalities in ATI are finalized, Nigeria could benefit from gross political and commercial risk insurance cover on total investments and trade amounting to...
29-Nov-2018

African Development Bank approves $100 million facility to enhance trade financing across Africa

The Board of Directors of the African Development Bank Group (the Bank), on Thursday, 29 November, 2018, approved a second unfunded $100-million Risk Participation Agreement (RPA II) facility for First Rand Bank Ltd (FRB).  Housed under the Trade Finance operations of the Bank, this facility will enhance FRB’s ability to underwrite trade finance transactions originating from issuing banks in transition states and low-income countries (LICs) across Africa.  It is estimated that the facility, when fully utilized, will support more than $600 million (double what was raised under the...
13-Jul-2018

African Development Bank and AfreximBank sign Strategic Factoring project to support African SMEs

The African Development Bank, through its Trade Finance operations, and Afreximbank today signed a Grant Agreement to support the development of factoring (a form of debtor finance in which a business sells its accounts receivable (invoices) to a third party (called a factor) at a discount) on the continent. This is a big step towards both institutions’ unrelenting drive and commitment to continue enabling extra and intra-Africa Trade. The Fund for African Private Sector Assistance (FAPA) hosted by the African Development Bank will invest US$500,000 towards the total deal size of US$950,...
31-May-2018

Ten-year CAD 60-million “Feed Africa” bond issued by the African Development Bank

The AAA-rated African Development Bank (Moody’s/S&P/Fitch/Japan Credit Rating Agency), issued its second “Feed Africa” bond for CAD 60 million, sold to Japan Post Insurance Co., Ltd., the sole investor in the transaction, with Citigroup Global Markets Limited acting as the arranger and lead manager of the transaction. As part of its High 5 priorities, the Bank adopted a “Feed Africa” Strategy for Agricultural Transformation in Africa 2016-2025, investing US $24 billion over ten years to help end extreme poverty; eliminate malnutrition; end dependency on food imports, and move Africa...
12-Apr-2018

African Development Bank’s Trade Finance Operation signs US $100-million soft commodity finance facility agreement with the Export Trading Group

The African Development Bank has signed a loan agreement for a soft commodity finance facility (SCFF) with the Export Trading Group (ETC). This Facility is innovatively structured as two successive loans of US $100 million, each with a tenor of up to 2 years, thus signifying the African Development Bank’s strong commitment to the promotion of agriculture in Africa. This SCFF is one of the core Trade Finance instruments in the Bank that will provide pre- and post-shipment finance along various stages of ETC’s commodity value chain operations in the 17 countries expected to benefit from the...
23-Mar-2018

African Development Bank pledges full support towards success of Continental Free Trade Area

The African Development Bank celebrates with Africa and pledges its full support to achieve the success of the recently launched Continental Free Trade Area, as part of its strategy to help Integrate Africa. To accelerate trade facilitation, the Bank has invested more than $20 million over the past five years in trade agreement support, and cross-border transport and energy soft infrastructure and is committing to support the building of the institutional and human capacities of the Continental Free Trade Area Secretariat. “The Continental Free Trade area will stimulate intra-...
06-Mar-2018

African Development Bank approves US $100-million Trade Finance Facility in Angola

The Board of Directors of the African Development Bank has approved a US $100-million Trade Finance Line of Credit to Angola’s Investment Bank (Banco Angolano de Investimentos, BAI). The funding will support international trade transactions of small and medium enterprises (SMEs) and local corporates in identified transformative sectors in Angola. In addition, a number of indirect benefits from this facility are expected to accrue to BAI’s subsidiaries in Cabo Verde and São Tomé and Príncipe through the strengthening of correspondent banking relationships by providing guarantees on their...
09-Feb-2018

NEPAD-IPPF supports African countries to strengthen regional infrastructure: Approves eight projects for US $14.83 million in 2016

The New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD-IPPF) has continued to support African countries to strengthen regional infrastructure connectivity by providing grants for project preparation and development for complex, cross-border regional infrastructure projects in energy, transport, ICT and trans-boundary water. This directly supports Africa’s integration and industrialization efforts as well as trade in goods and services and helps to improve the quality of lives of Africans by improving access to infrastructure services – electricity,...
09-Nov-2017

AfDB approves US$ 172 million financial package to Nedbank

The Board of Directors of the African Development Bank Group (AfDB) has approved a US$ 172-million financial package to Nedbank Group Limited of South Africa, to finance local and continental businesses. The package comprises of a ZAR 2-billion subordinated loan and a US$ 30 million unfunded Risk Participating Agreement (RPA) facility to benefit African issuing banks in 20 Regional Member Countries (RMCs). The sub-debt will strengthen Nedbank’s Balance sheet and contribute towards the realization of its strategy to finance among other sectors, infrastructure, SMEs; digital banking and...
06-Oct-2017

African Development Bank releases second Trade Finance in Africa survey report, “Overcoming Challenges”

The African Development Bank (AfDB) has released its second Trade Finance in Africa survey report: “Trade Finance in Africa: Overcoming Challenges”. Building on the findings of the maiden 2013 survey, this new report (covering the period 2013–2014) goes even further to gauge other aspects of bank-intermediated trade finance, such as the challenges encountered by SMEs and first time trade finance clients. The report is therefore based on the combined data from the 2013 and 2015 surveys. The report’s main findings are outlined below:   The value of bank-intermediated trade...
14-Jun-2017

AfDB approves US $100 million for Export Trading Group’s soft commodity value chain operations in sub-Saharan Africa

The African Development Bank has approved a US $100- million facility to finance Export Trading Group (ETG’s) soft commodity value chain operations in sub-Saharan Africa. This Soft Commodity Finance Facility (SCFF) is one of the core Trade Finance instruments in the Bank, innovatively structured to provide pre- and post-shipment finance along various stages of ETG’s commodity value chain operations in the 17 countries expected to benefit from the initiative. This intervention will help local farmers and soft commodity suppliers grow their revenues and produce quality crops for...
24-Apr-2017

Fostering Development Through Trade Finance Brochure - Full Version

Trade is the cornerstone of economic development by African countries. Botswana, Mauritius and Namibia have all transformed themselves from low income into middle income countries by improving their ability to trade in regional and global markets. Yet the continent as a whole can greatly strengthen its trading position in order to improve living standards and economic growth. Africa accounts for just 3 per cent of global trade and has a lower proportion of intra-regional trade than any other part of the world. The continent remains overly dependent on the export of raw materials, so that...
13-Apr-2017

AfDB approves USD18.15 million to support South Sudan’s membership in the African Trade Insurance Agency and Trade & Development Bank

The African Development Bank Group (AfDB) has approved a US $18.15 million facility to the Government of South Sudan (GRSS), to assist the country with the required resources for its African Trade Insurance (ATI) and Trade & Development Bank (TDB) (formerly known as PTA Bank) membership application. This is a critical step and a prerequisite for the respective institutions to commence their operations within South Sudan. The approved facility complements other AfDB’s ongoing and planned interventions geared towards building institutions and improving resilience and livelihoods for the...
30-Mar-2017

AfDB Approves a USD 450 million Trade Finance Package for the African Export-Import Bank (Afreximbank)

The Board of Directors of the African Development Bank (AfDB) approved on Wednesday, May 29, 2017 a USD 450 million Trade Finance Package for the African Export–Import Bank (Afreximbank). The facility consists of a 3-year USD 150 million unfunded Risk Participation Agreement (guarantees) and a 4-year USD 300 million Trade Finance Line of Credit. This composite facility will help to expand Afreximbank’s risk bearing capacity for the confirmation of letters of credit and to support more trade through the provision of increased liquidity to local financial institutions and corporates in Africa...
28-Feb-2017

Tunisie : une ligne de crédit de la BAD de 60 millions d’euros à la Banque de l’Habitat pour financer les PME

La Banque africaine de développement (BAD) et la Banque de l’Habitat (BH) ont signé, le 27 février 2017 à Tunis, l’accord de prêt préalable à l’octroi d’une ligne de crédit de 60 millions d’euros, destinée au financement des PME tunisiennes. Cette ligne de crédit devrait a à redynamiser les échanges économiques et commerciaux de la BH ; mais aussi soutenir la croissance de cet établissement bancaire sur le marché tunisien et renforcer sa présence en Afrique. Ahmed Rjiba, directeur général de la BH, a salué le caractère opportun de cette ligne de crédit : « En bénéficiant d’une source en...