The Board of Directors African Development Bank’s (AfDB) has approved a $50 million Trade Finance Unfunded Risk Participation Agreement (RPA) with Standard Chartered Bank.
The agreement was inked on September 8, according to a statement released by the bank on Tuesday. The agreement is anticipated to improve intra-African trade, promote regional integration, and help close Africa’s trade finance gap, according to the bank.
This is in keeping with the African Continental Free Trade Area Agreement’s implementation aims (AfCFTA).
According to the announcement, AfDB Director for Financial Sector Development Stefan Nalletamby expressed his satisfaction, adding that the deal would enhance intra-African commerce.
We are excited about finalising 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 catalyse more than 600 million dollars in value of trade finance transactions across multi-sectors such as agriculture, manufacturing and energy over the next three years”.