The African Development Bank Group and the ECOWAS Bank for Investment and Development (BID) have signed an agreement for a dual currency line of credit, comprising $50 million and €50 million to support local agricultural businesses in West Africa.
Dr. George Agyekum Donkor, President and Chairman of the Board of Directors of EBID, and Solomon Quaynor, African Development Bank (AfDB) vice-president for Private Sector, Infrastructure, and Industrialisation, formalized the agreement during a signing ceremony at the African Development Bank’s Abidjan headquarters.
Dr. Donkor said, “This credit facility illustrates BID’s continued efforts to mobilize adequate resources to honour its commitment to the region’s transformation agenda through supporting and investing in key sectors, in this case, the agribusiness industry.”
The AfDB’s Board of Directors approved the dual currency line of credit for BID early in 2023.
The Africa Growing Together Fund, (ATF) managed by the AfDB, will provide an additional $30 million in co-financing. AGTF is sponsored by the People’s Bank of China.
The three-and-a-half-year facility will enable BID to offer direct financing to commercial banks and local businesses operating in the agriculture and soft commodity sector within its member states.
This aligns with BID’s strategic aim to support local businesses, particularly small and medium-sized enterprises (SMEs), local business cooperatives, and farmers in West Africa.
The credit lines are expected to strengthen food security, economic growth, and employment generation.
Mr Quaynor said, “This agreement underscores our strong commitment to harness the continent’s limited resources to deliver, with speed and at scale, quality investments to help address the ever-increasing trade finance gap in Africa while working with strategic regional partners like EBID and – through you – local commercial banks.”
The partnership between BID and the AfDB demonstrated the increasing cooperation among African Development Finance Institutions to bridge trade finance gaps and direct much-needed funds to economically challenged countries and sectors.