The African Development Bank (AfDB) has signed a 50 million dollars Risk Participation Agreement (RPA) with investment and corporate bank Natixis to boost trade finance in Africa.
A statement by the Communication and External Relations Department of AfDB on Thursday, indicated that 50/50 risk-sharing agreement covered a portfolio of commercial transactions totaling 100 million dollars.
Natixis is the international financing institution, investment, asset management, insurance and financial services division of Groupe BPCE, the second-largest banking group in France, with 31 million customers through its two networks, Banque Populaire and Caisse d’Epargne.
Natixis has expertise in four business areas: Asset and Wealth Management; Corporate and Investment Banking; Insurance; and specialized financial services, it supports its financial institutions and institutional investors’ clienteles around the world.
It explained that the agreement would support commercial operations worth 600 million dollars in Africa over the next three years.
According to the statement, the AfDB’s Director of Financial Sector Development, Stefan Nalletamby, the RPA will meet the growing demand of African markets for trade finance in key economic sectors such as agribusiness, health, services and industry.
“In addition, it will promote the diversification of the economy, generating growth, jobs and additional tax revenues for several African states.
“The agreement will notably benefit African commercial banks as well as SMEs on the continent, by guaranteeing them better access to financing for their foreign trade operations.
“Today’s signing is important as it responds to our desire to develop financial partnerships with strong non-regional banks, to boost trade finance in Africa and further support intra-African trade, as outlined in our Trade Finance Programme endorsed in 2018.
“This agreement will allow us to extend our support to African SMEs, but also to local banks in French-speaking countries and some transition states,” it said.
The statement also quoted Mr Marc Jaskowiak, Senior Banker, who signed the agreement on behalf of Natixis as saying “this historic agreement allows us not only to better support our clients in Africa, but also to further strengthen the strategic relationship that we have the privilege of developing with the AfDB.” (NAN)