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Democratic Republic of the Congo: African Development Bank grants $7 million trade finance guarantee facility to Access Bank DR Congo to support SMEs and local businesses
The African Development Bank will now be able to provide up to a 100% guarantee to confirming banks for the non-payment risk from the confirmation of letters of credit
This facility will help improve the provision of trade finance services by providing essential guarantees for the confirmation of letters of credit issued for SMEs
On 20 February 2024, the Board of Directors of the African Development Bank Group (www.AfDB.org) approved a $7 million trade finance guarantee facility grant to Access Bank DR Congo.
The African Development Bank will now be able to provide up to a 100% guarantee to confirming banks for the non-payment risk from the confirmation of letters of credit and similar trade finance instruments issued by Access Bank DR Congo for the benefit of small and medium-sized enterprises (SMEs) and local businesses. Over the next three years, the Bank will also support the import of essential goods and various inputs in such key economic sectors as health and agriculture, as well as $40 million in trade.
"This facility will help improve the provision of trade finance services by providing essential guarantees for the confirmation of letters of credit issued for SMEs, Access Bank DR Congo's target client group," said Lamin Drammeh, Head of the Trade Finance Division at the African Development Bank.
"Access Bank has always been passionate about the economic development of the communities we serve," said Arinze K. Osuachala, CEO of Access Bank DR Congo. “Our main goal is to understand and respond to the real needs of the Congolese people, to support the economic growth of the DRC. We are thrilled to be taking this step, because the Facility demonstrates the commitment of Access Bank DR Congo and the African Development Bank Group to advancing trade in Africa”.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
The African Development Bank's trade finance guarantee facility granted to Access Bank DR Congo will support imports of essential goods and various inputs in such key sectors of the Congolese economy as health and agriculture
Media contact:
Alexis Adélé
Communication and External Relations Department
media@afdb.org
About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (ADB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). With country offices in 34 African countries and an external office in Japan, the AfDB contributes to the economic development and social progress of all its 54 regional member states in Africa. For more information: www.AfDB.org
The African Development Bank's Transaction Guarantee (TG) Instrument:
The transaction guarantee is one of the trade finance instruments that the African Development Bank offers to support commercial banks in Africa. Launched in 2021, the guarantee covers a range of trade finance instruments including confirmed letters of credit, commercial loans, irrevocable repayment commitments, endorsed drafts and promissory notes, among others. This instrument enables the Bank to leverage its AAA rating to mitigate country risk and counterparty risk for confirming banks. The facility is available to all banks that are registered and operating in Africa which have passed the Bank's due diligence process. In addition to transaction guarantees, the African Development Bank Group also offers credit lines to African commercial banks for trade finance to support importers and exporters.
Access Bank DR Congo:
A subsidiary of Access Bank Plc Nigeria, Access Bank DR Congo was launched in the DRC in 2009 after the acquisition of the Banque Privée du Congo, which had been in existence since 2002. It operates 17 branches in the Democratic Republic of Congo and employs 532 people, of whom 218 (41%) are women. Established in 1988 and listed on the Nigerian Stock Exchange as of 1998, Access Bank Plc Nigeria is a well-known partner of the African Development Bank, which has already granted it two finance packages – two lines of credit, one for $35 million in 2006 and another for $100 million in 2014.