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The Board of Directors of the African Development Bank Group (https://www.AfDB.org/) on Wednesday 13 July approved a €50 million risk-sharing partnership with Societe Generale to further support trade finance activities across Africa. This facility will contribute to reducing the trade finance gap in Africa by increasing Societe Generale’s risk-bearing capacity by up to fifty percent, enabling it to provide increased confirmation limits to local issuing banks on the continent.
The parties will share the risk of default on a portfolio of eligible trade transactions initiated by African Issuing Banks and indemnified by Societe Generale. Beneficiaries of this facility will be issuing banks in Africa who will benefit from additional support from international banks to grow their trade finance business, as well as small and medium-sized enterprises (SMEs) and domestic firms that rely on these issuing banks to meet their trade finance. obligations.
Stefan Nalletamby, director of financial sector development at the African Development Bank, said the partnership with Societe Generale will help support small African businesses and local corporations involved in international trade.
“The facility is well aligned with the acute market demand for trade finance in Africa in agriculture, transport, construction, healthcare and manufacturing. It is also in line with the African Development Bank’s high 5 strategic priorities, namely Industrialize Africa, Integrate Africa and Feed Africa. The Bank’s Financial Sector Development Strategy promotes greater access to finance for small businesses and the expansion and deepening of African financial markets,” Nalletamby said. “When fully deployed, the Partnership will support 40 local banks operating in 16 African countries and is expected to catalyze trade transactions worth approximately €600 million over a 3-year period.”
The African Development Bank’s Deputy Managing Director for West Africa, Joseph Ribeiro, said: “We are delighted about this partnership with Societe Generale as it offers flexible use of AfDB Group’s strong AAA-rated risk bearing capacity to increase access to trade finance on the continent, specifically , to support access to finance for SMEs and local businesses operating in fragile states.”
Societe Generale’s Global Head of Commodity Trade Finance, Pierre-Antoine Barreault, added: “With a presence in 19 countries, Societe Generale is a leading international bank in Africa and provides multidimensional support to SMEs and African companies, aiming to contribute responsible and sustainable path to the development of the continent. This partnership with the AfDB is crucial for Societe Generale to enhance its capabilities to help our clients and local economic actors procure vital food and energy products.”
Distributed by APO Group on behalf of the African Development Bank Group (AfDB).
Contact with the media:
Amba Mpoke-Bigg
Department of Communications and External Relations
[email protected]
Technical contact:
Mohamadou BA
Chief Trade Finance Officer
[email protected]
About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It consists of three different entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigerian Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and social progress of its 54 regional member states. For more information: j.mp/AFDB_Media
About Societe Generale:
Societe Generale is one of the leading European groups for financial services. Based on a diversified and integrated banking model, the Group combines financial strength and proven innovation expertise with a sustainable growth strategy. Committed to positive transformations of world societies and economies, Societe Generale and its teams strive day by day, together with their clients, to build a better and sustainable future through responsible and innovative financial solutions.
Active in the real economy for more than 150 years, with a solid position in Europe and connected to the rest of the world, Societe Generale has over 131,000 staff members in 66 countries and supports 26 million individual clients, business and institutional investors worldwide every day (figures as of 31 December 2021) offering a wide range of advisory services and customized financial solutions.
For more information, you can follow us on Twitter @societegenerale or visit our website www.SocieteGenerale.com.
This Press Release was issued by APO. The African Business editorial team does not monitor the content and our editorial team, proofreader or fact checker has not checked or verified the content. The publisher is solely responsible for the content of this publication.
