The African Development Bank (AfDB) has approved a multinational trade finance risk participation agreement of 50 million dollars, or 27.8 billion CFA francs for the benefit of Standard Chartered Bank.

The Board of Directors of the African Development Bank Group has approved a Risk Participation Agreement (RPA) for Trade Finance. According to the statement issued in this context, the agreement is expected to boost intra-African trade, promote regional integration and contribute to the reduction of the trade finance gap in Africa, in line with the implementation aspirations of the Free Zone. - African continental exchange (ZLECAf). The parties will share the risk of default on a portfolio of eligible commercial transactions initiated by African banks of issue and indemnified by Standard Chartered Bank.

The beneficiaries of this facility are issuing banks in Africa whose ability to develop their trade finance activities has been limited by trade confirmation lines inadequate to the requirements of international banks, as well as small and medium-sized enterprises (SMEs) and domestic companies that rely on these issuing banks to fulfill their trade finance commitments. This partnership is expected to catalyze over $600 million in trade finance transactions across multiple sectors such as agriculture, manufacturing and energy over the next three years. The Risk Participation Agreement facility is aligned with the African Development Bank's 5 priority objectives: Light up and Power Africa; Feed Africa; Industrialize Africa; Integrate Africa; and Improving the quality of life of the people of Africa. Note that Standard Chartered Bank is a leading international banking group incorporated in England and Wales, limited liability and listed on the London, Hong Kong and Mumbai stock exchanges.