- OFID signs agreement with Ecobank to help bolster trade in Africa
OFID signs agreement with Ecobank to help bolster trade in Africa
July 20, 2015, Vienna, Austria. The OPEC Fund for International Development (OFID) has signed an agreement for an unfunded trade finance risk-sharing scheme with EBI SA, the Paris subsidiary of Ecobank Group. The program, in the amount of US$100m, will be split equally between the two partners. It will be used to help bolster trade in African countries, supported by a vast pan-African banking network across many countries. The program is expected to generate substantial incremental trade in excess of the ceiling amount due to the short tenor of the transactions.
The agreement was signed by OFID Director-General Suleiman J Al-Herbish and EBI SA, whose Managing Director is Christophe Jocktane-Lawson.
Trade finance is one of Ecobank’s key activities. OFID will co-confirm trade finance transactions from banks in Africa, which originate from Ecobank, through its subsidiary EBI S.A., Paris. This will allow importers and exporters to generate more business and form new business partnerships.
In facilitating trade finance, OFID helps developing countries export or import goods essential to their socio-economic development. All sectors will be covered by the program, including those in the vital areas of agriculture, energy and manufacturing. OFID started its unfunded trade finance program in 2007. To date, some 50 countries have benefitted from OFID’s unfunded transactions with either other development finance institutions or international commercial banks.