Africa, Asia Development Banks sign trade financing agreement

The African Development Bank (AfDB) and the Asian Development Bank (ADB) have signed an agreement which will boost African trade.

A statement from the AfDB on June 27, 2011 says the ADB will cooperate and help the AfDB set up a “trade finance program to boost African trade, and, more broadly, South-South trade.”

The AfDB said “Under the just-signed Memorandum of Understanding, ADB will share all legal document templates, operation manuals, information technology, and know-how related to its Trade Finance Program with AfDB.”

ADB, which operates a Trade Finance Program, provides guarantees and loans in support of trade in developing Asia through over 200 partner banks and has provided support for $2.8 billion worth of trade in 2010, up from $1.9 billion in 2009.

Speaking at a signing ceremony which took place in Tunis, Tim Turner, the Director at AfDB’s Private Sector Department said “By leveraging the experience of strategic partners, such as ADB, AfDB will not only be reducing the financial commitment necessary to ramp up its activities but also facilitate the expansion of African trade with Asia.”

By Ekow Quandzie