The African Development Bank Group and the ECOWAS Bank for Investment and Development (EBID) have come together to provide a dual currency line of credit worth $50 million and €50 million. This credit facility will support local agricultural businesses in West Africa and promote economic growth in the region.
The agreement was formalized during a signing ceremony at the African Development Bank’s Abidjan headquarters. Dr. George Agyekum Donkor, President and Chairman of the Board of Directors of EBID, and Solomon Quaynor, African Development Bank Vice President for Private Sector, Infrastructure, and industrialization, were present at the event.
Dr. Donkor expressed his satisfaction with the credit facility, stating that it demonstrates EBID’s commitment to supporting and investing in key sectors of the region’s transformation agenda, particularly the agribusiness industry. This financing will help strengthen the agricultural sector, enhance food security, and stimulate economic growth and employment generation.
Under this arrangement, EBID will be able to offer direct financing to commercial banks and local businesses operating in the agriculture and soft commodity sector within its member states. It aligns with EBID’s strategic aim of supporting local businesses, including small and medium-sized enterprises (SMEs), local business cooperatives, and farmers in West Africa.
The African Development Bank’s board of directors approved the dual currency line of credit for EBID earlier this year. In addition to the $50 million and €50 million from the African Development Bank, the Africa Growing Together Fund (AGTF), managed by the African Development Bank, will provide an extra $30 million in co-financing. AGTF is sponsored by the People’s Bank of China.
Vice President Quaynor emphasized the strong commitment of the African Development Bank to deliver quality investments that address the growing trade finance gap in Africa. The partnership with EBID and local commercial banks is a strategic move to mobilize resources and provide much-needed funding to economically challenged countries and sectors.
The collaboration between EBID and the African Development Bank highlights the increasing cooperation among African Development Finance Institutions. By bridging trade finance gaps, these institutions aim to support economic development and promote financial inclusion in Africa.
EBID, the development finance institution of the Economic Community of West African States (ECOWAS), is committed to financing developmental projects and programs across various sectors. With its private and public sector windows, EBID offers long, medium, and short-term loans, equity participation, lines of credit, refinancing, financial engineering operations, and related services.
The dual currency line of credit provided by the African Development Bank and EBID is a significant step towards promoting agricultural growth and economic development in West Africa. It showcases the importance of collaboration among development finance institutions to support local businesses and empower communities in the region.