To support financing for importers and exporters in Africa, especially in fragile and conflict-affected states, IFC has partnered with Deutsche Bank to establish a €215 million risk-sharing facility.
In 2022, Africa's trade in goods and services amounted to $1.1 trillion, 54% of its GDP. Yet African banks face cashflow challenges that limit trade finance availability.
This facility aims to maintain trade finance in African countries as many global banks reduce involvement, enhancing trade and aiding climate adaptation and food security.
IFC will share risks on Deutsche Bank's trade transactions with 40 issuing banks in 18 African countries, including 14 identified by the International Development Agency as small, fragile, or conflict-affected.
The initiative, part of the IFC Africa Trade and Supply Chain Recovery Initiative, is expected to encourage other financial institutions to support trade finance, promoting economic growth and job creation across the continent.
Article from Trade Finance Global. Read more here or in the PDF below.
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