12 °c
London
Monday, August 15, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home AfDB

AfDB approves US$50M for Standard Chartered Bank

FurtherAfrica by FurtherAfrica
September 16, 2021
in AfDB, Africa, Banking, Development, Finance, Trade
Reading Time: 2 mins read
835 8
0
AfDB World Business Angels Investment Forum
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

The Board of Directors of the African Development Bank Group has approved a $50 million Trade Finance Unfunded Risk Participation Agreement (RPA) facility between the African Development Bank and Standard Chartered Bank.

The agreement is expected to boost intra-Africa trade, promote regional integration, and contribute to the reduction of the trade finance gap in Africa, in line with implementation aspirations of the African Continental Free Trade Area (AfCFTA).

The parties will share the default risk on a portfolio of eligible trade transactions originated by African Issuing Banks and indemnified by Standard Chartered Bank. Beneficiaries of this facility are issuing banks in Africa whose ability to grow their trade finance business has been constrained by inadequate trade confirmation lines from international banks, as well as small and medium enterprises (SMEs) and domestic firms who rely on these issuing banks to fulfill their trade finance commitments. The agreement was signed on Wednesday, 8 September 2021.

Speaking soon after the Board approval, the Bank’s Director for Financial Sector Development, Stefan Nalletamby, stated:

“We are excited about finalizing this facility with Standard Chartered Bank as it offers us the flexibility to use our strong AAA-rated risk-bearing capacity to increase access to trade finance and boost intra/extra- African trade on the continent, in support of the AfCFTA. This partnership is expected to catalyze more than $600 million in value of trade finance transactions across multi-sectors such as agriculture, manufacturing and energy over the next three years.”

The African Development Bank estimates the trade finance gap in 2019 for the African continent at $81 billion. Compared to multinational corporates and large local corporates, SMEs and other domestic firms have greater difficulty accessing trade finance.

Also read: AfDB financing the first “Industrialise Mozambique” programme in Cabo Delgado and Niassa

The Director General of the Bank’s Southern Africa region, Leila Mokadem, added: “The advent of Covid-19, coupled with stringent regulatory/capital requirements and Know Your Customer( KYC) compliance enforcement, has seen many global banks reduce their correspondent banking relationships in Africa, while some are exiting the market altogether. There is therefore an urgent need for financing to reenergize Africa’s trade, which requires more participation of institutions like the African Development Bank.”

The Risk Participation Agreement facility is aligned with the African Development Bank’s High 5 priority goals: (i) Light up and power Africa; (ii) Feed Africa; (iii) Industrialize Africa; (iv) Integrate Africa; and (v) Improve the quality of life for the people of Africa.

Standard Chartered Bank is a leading international banking group incorporated in England and Wales with limited liability and listed on the London, Hong Kong and Mumbai stock exchanges.

It is headquartered in London and strategically focused on Asia, Africa and the Middle East. Standard Chartered Bank has a deep-rooted heritage of over 160 years in Africa and is recognized as a leading provider of trade finance on the continent, with 15 subsidiaries and over 200 correspondent banking relationships. Its long-term ratings are A1 (Moody’s), A+ (Fitch) and A (S&P).

Related

Tags: afdbAfDB approves US$50M for Standard Chartered Bankafrican development bankintra-African tradeStandard Chartered BankTradeTrade Finance Unfunded Risk Participation Agreement
ScanSendShare337Tweet211Share59Pin76Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Agriculture

Largest fertiliser-producing countries in Africa and their output

by The Exchange
August 15, 2022
Financial Inclusion

The role of the youth in driving financial inclusion in Africa

by Emmanuel Chilamphuma
August 15, 2022
Energy

Zambia and Tanzania agree to revamp TAZARA, expand TAZAMA pipeline

by The Exchange
August 15, 2022
IMF, World Bank say Africa to get US$57B from official creditors in 2020
Finance

HAVAÍC backs FinAccess

by Africa Global Funds
August 15, 2022
Trade

Ethiopia expects US$1.8B revenue from coffee export this year

by FurtherAfrica
August 15, 2022
Angola Oil & Gas 2022
 
AFSIC 2022
 
Great Limpopo Transfrontier Park
 
MozParks

Translate this page

Read the Latest

Agriculture

Largest fertiliser-producing countries in Africa and their output

by The Exchange
August 15, 2022
0

Morocco tops the list of the largest-fertiliser producing countries in Africa. Other countries on the list are Egypt and Algeria....

Read more

The role of the youth in driving financial inclusion in Africa

August 15, 2022

Zambia and Tanzania agree to revamp TAZARA, expand TAZAMA pipeline

August 15, 2022
IMF, World Bank say Africa to get US$57B from official creditors in 2020

HAVAÍC backs FinAccess

August 15, 2022

Ethiopia expects US$1.8B revenue from coffee export this year

August 15, 2022

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 99,379 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?