AfDB, StanChart sign $400m risk facility to boost trade in Africa

Turner and Essoka signing the deal.

Standard Chartered Bank has signed its first ever risk facility agreement with the African Development Bank (AfDB).

The $400 million Risk Participation Facility was signed between the two banks at the just-ended 48th Annual Meetings of the AfDB.

StanChart’s Chief Executive Officer for Southern Africa, Ebenezer Essoka and AfDB’s Director of Private Sector, Tim Turner, signed on behalf of their institutions.

The three-year facility, the two say, is to support trade flows of approximately $3.6 billion in Africa for both imports and exports across vital economic sectors including agriculture and food to corporate and financial institution clients.

Speaking to the press after the signing, Mr Tim Turner said; “Through our risk sharing facility with Standard Chartered, the programme will bolster the trade finance capacity of banks in Africa, and in turn, expand trade and regional economic integration.”

Mr Ebenezer Essoka said the focus of the facility will be more on SMEs. He added that the agreement will boost intra-African trade as well as help develop trade flows between the continent and the rest of the world.

The facility is based on a 50/50 risk sharing agreement.

By Ekow Quandzie back from Marrakech, Morocco

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