APA-Kinshasa (DRC) – The African Development Bank (AfDB) intends to support small and medium-sized enterprises, as well as other local businesses, through Access Bank DR Congo.
At its meeting in Abidjan (Cote d’Ivoire) on 20 February, the Board of Directors of the African Development Bank (AfDB) Group approved a seven million dollar trade finance guarantee facility for Access Bank RDC.
Under the facility, the financial institution will be able to “provide up to 100% guarantee to confirming banks against the risk of non-payment arising from the confirmation of letters of credit and similar trade finance instruments issued by Access Bank RD Congo in favour of small and medium-sized enterprises (SMEs) and other local companies,” according to a press release seen by APA.
In addition, the Trade Finance Guarantee Facility will support “imports of essential goods, various inputs in key economic sectors such as health and agriculture, and trade to the tune of $40 million over the next three years.”
According to Lamin Drammeh, head of the AfDB’s trade finance department, it will “help improve the supply of trade finance services by providing essential guarantees for the confirmation of letters of credit issued on behalf of SMEs, the target clientele of Access Bank RD Congo.”
Arinze K. Osuachala, Chairman and CEO of Access Bank RD Congo, said that the financial structure he heads “has always been passionate about the economic development of communities.” “Our main objective is to understand and respond to the real needs of the Congolese people in order to support the economic growth of the DRC. We are delighted to take this step, as the facility demonstrates the commitment of Access Bank RD Congo and the African Development Bank Group to promoting trade in Africa,” he added.
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