The African Export-Import Bank (Afreximbank) and Ecobank have signed a memorandum of understanding worth US$500mn to finance private sector projects and trade finance transactions amongst Afreximbank member countries where Ecobank is present. Afreximbank currently has 41 member countries across the African continent, while Ecobank is present in 36. The agreement is aimed at promoting intra-African trade and facilitate industrial and export development. Under the agreement, the banks have committed to designing joint innovative tailor-made financial instruments and solutions to support private sector corporates, select strategic public sector institutions, as well as SMEs.
Creates Efficiency in Trade Financing: The Partnership will lead to a more efficient way of channeling trade finance towards supporting growth of intra-African trade and industrial development. The enhanced access to these funds would revamp local companies as it opens up more opportunities for local businesses to access financing for their trading activities. It is expected that, export oriented companies operating within the partnership zone would benefit greatly, as access to trade financing become readily available and easily accessible
Increased Investment Inflows through Export Development: With the agreement focusing particularly on transactions involving trade and investments, it is expected that overall economic growth will be spurred, resulting in increased productivity and employment opportunities.
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