Agriculture & Agribusiness Banking Economy News Extra Latest News Manufacturing

ECOWAS Bank, Franco-German Group Seal €40m Pact To Support SMEs

The ECOWAS Bank for Investment and Development (EBID) has signed a €40 million framework agreement with the ODDO BHF Aktiengesellschaft, a Franco-German financial services group with a longstanding track record and expertise in trade financing, to support Small and Medium Enterprises’ (SMEs’) recovery in the West African sub-region.

The agreement was signed by the President of the EBID, Dr. George Donkor and the Head of International and Corporate Banking at ODDO BHF, Mr. Florian Witt, on Tuesday via a video conference.

Specifically, the fund will be used to strengthen small and medium scale enterprises (SMEs) and industries and through it enable them to contribute to the continent’s economic growth and create jobs by financing projects in key areas of renewable energy, agribusiness and pharmaceutical production, amongst others.

Commenting on the deal, Donkor, said “the credit facility illustrates the commitment of the two institutions to the region’s transformation agenda through sustainable support to the vital sector of agribusiness.”

In his remarks, Witt said: “ODDO BHF AG, with its international banking division and its strong focus on Africa, has been supporting the West African region for many years and is very much looking forward to working with the EBID.”

The framework agreement consists of an uncommitted credit line of €40 million provided by the ODDO BHF AG to the EBID under which individual loan agreements could be concluded.

According to its terms, the credit line is designed for project-related transactions throughout the Economic Community of West African States (ECOWAS) sub-region, which included supplies from Europe officially supported by export credit agencies (ECAs) like the Atradius of the Netherlands, the Bpifrance Assurance Export of France and the Euler Hermes of Germany.

The parties described the cooperation between EBID and ODDO BHF AG as major contribution to the development of various industrial sectors, particularly the SMEs, in the ECOWAS region.

Spread the love

Leave a Reply

Your email address will not be published.