African Development Bank Grants $7 Million Trade Finance Boost to Access Bank DR Congo

Aiming to bolster trade finance services and supporting economic growth in the Democratic Republic of Congo (DRC), the Board of Directors of the African Development Bank Group approved a $7 million trade finance guarantee facility grant to Access Bank DR Congo.

The approval, granted on 20th February 2024, signals a collaborative effort to enhance access to financing for small and medium-sized enterprises (SMEs) and local businesses in the region.

Under this initiative, the African Development Bank will provide up to a 100% guarantee to confirming banks for the non-payment risk associated with letters of credit and similar trade finance instruments issued by Access Bank DR Congo.

This guarantee is designed to facilitate trade activities and ensure smoother transactions, particularly benefiting SMEs and local businesses.

Over the next three years, the facility will also support the importation of vital goods and various inputs, with a focus on key economic sectors such as health and agriculture, alongside facilitating $40 million in trade.

Lamin Drammeh, Head of the Trade Finance Division at the African Development Bank, highlighted the significance of this facility, stating, "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."

Arinze K. Osuachala, CEO of Access Bank DR Congo, expressed enthusiasm for the partnership, emphasizing the bank's commitment to driving economic development in the communities it serves.

Osuachala stated, "Access Bank has always been passionate about the economic development of the communities we serve. 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."

This initiative underscores the collaborative efforts between financial institutions and development partners to promote inclusive economic growth and facilitate trade activities, ultimately contributing to the prosperity of the DRC and the broader African continent.

Source: Aayushya Ranjan / Tech Africa News