THE African Development Bank (AfDB) and the ECOWAS Bank for Investment and Development (EBID) have joined forces to provide vital support to local agricultural businesses in West Africa. In a significant agreement, a dual currency line of credit, totalling $50 million and €50 million, has been established to bolster the region’s agribusiness sector.
The agreement was formally sealed during a signing ceremony at the African Development Bank’s headquarters in Abidjan, with 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 Industrialisation, presiding over the event.
Donkor emphasised the importance of the credit facility, highlighting EBID’s commitment to supporting and investing in key sectors, specifically the agribusiness industry, to advance the region’s transformation agenda.
The African Development Bank’s board of directors had previously approved the dual currency line of credit for EBID early in 2023. An additional $30 million in co-financing will be provided by the Africa Growing Together Fund (AGTF), which is managed by the African Development Bank and sponsored by the People’s Bank of China.
Over the course of three and a half years, this facility will empower EBID to extend direct financing to commercial banks and local businesses operating in the agriculture and soft commodity sector across its member states. This initiative aligns perfectly with EBID’s strategic objective of supporting local enterprises, particularly small and medium-sized enterprises (SMEs), local business cooperatives, and farmers in West Africa. The credit lines are expected to have a positive impact on food security, economic growth, and employment opportunities in the region.
Vice President Quaynor stressed the commitment to addressing the increasing trade finance gap in Africa by harnessing the continent’s limited resources and delivering high-quality investments at scale. He emphasised the importance of collaboration with strategic regional partners like EBID and local commercial banks.
This partnership between EBID and the African Development Bank exemplifies the growing cooperation among African Development Finance Institutions in bridging trade finance gaps and directing essential funds to economically challenged countries and sectors.
