African Development Bank and ECOWAS Bank sign dual currency line of credit to boost West African Agriculture

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African Development Bank and ECOWAS Bank sign dual currency line of credit to boost West African agriculture: Ghana News

The Group (AfDB) and the Bank for Investment and Development (EBID) have formalized an agreement for a dual currency line of credit, consisting of $50 million and €50 million, aimed at supporting local agricultural enterprises in .

The signing ceremony took place at the 's headquarters in Abidjan, with Dr. George Agyekum Donkor, President and Chairman of the Board of Directors of EBID, and Solomon Quaynor, AfDB Vice-President for Private Sector, Infrastructure, and Industrialization, officiating the agreement.

Dr. Donkor highlighted that this credit facility reflects EBID's ongoing efforts to mobilize sufficient resources to fulfill its commitment to the region's transformation agenda, particularly by supporting and investing in vital sectors, such as the agribusiness industry.

The AfDB's Board of Directors had granted approval for the dual currency line of credit for EBID at the beginning of 2023. Additionally, the Africa Growing Together Fund (AGTF), managed by the AfDB and sponsored by the People's Bank of , will provide an extra $30 million in co-financing.

This three-and-a-half-year facility will enable EBID 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 EBID's strategic goal of supporting local businesses, particularly small and medium-sized enterprises (SMEs), local business cooperatives, and farmers in .

The credit lines are expected to strengthen , stimulate economic growth, and generate employment opportunities.

Mr. Quaynor emphasized the AfDB's commitment to leverage the continent's limited resources to deliver high-quality investments at scale and speed, addressing the growing trade finance gap in Africa.

He also highlighted the importance of collaborating with regional partners like EBID and local commercial banks to achieve these objectives.

The partnership between EBID and the AfDB showcases the increasing cooperation among African Development Finance Institutions to bridge trade finance gaps and channel essential funds to economically challenged countries and sectors in the region.

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