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Business News of Saturday, 27 April 2019

Source: Myjoyonline.com

AfDB signs $50m agreement with Natixis to boost trade finance in Africa

The African Development Bank (AfDB) has signed a $50 million risk participation agreement (APR) with investment and corporate bank Natixis.

The 50/50 risk-sharing agreement covers a portfolio of commercial transactions totalling $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 Marc Jaskowiak, Senior Banker representing Natixis, who signed the agreement.

The RPA will meet the growing demand of African markets for trade finance in key economic sectors such as agribusiness, health, services and industry.

In addition, it will promote the diversification of the economy, generating growth, jobs and additional tax revenues for several African states.

The agreement will notably benefit African commercial banks as well as SMEs on the continent, by guaranteeing them better access to financing for their foreign trade operations.

"The signing is important as it responds to our desire to develop financial partnerships with strong non-regional banks, to boost trade finance in Africa and further support intra-African trade, as outlined in our Trade Finance Program endorsed in 2018," said AfDB Director of Financial Sector Development, Stefan Nalletamby.

"This agreement will allow us to extend our support to African SMEs, but also to local banks in French-speaking countries and some transition states."