LOME, Feb. 14 (Xinhua) -- Ecobank Transnational Incorporated (ETI) and African Export-Import Bank (Afreximbank) on Tuesday signed a MOU purposed to finance private sector projects and trade transactions in Africa.
A release from the ETI headquarters in the capital Lome said on Tuesday that the agreement will focus on particularly transactions involving trade and investment in Afreximbank member countries where Ecobank also has a presence.
It underscored that the win-win collaboration between the two institutions would support efforts on promoting intra-African trade, facilitating industrial development and export development.
Besides, the cooperation will strengthen African trade finance leadership, with the ultimate goal of transforming the African continent.
According to the documentation, Afreximbank and Ecobank will design joint innovative and tailor-made financial instruments and solutions to support private sector corporates and select strategic public sector institutions, as well as small and medium enterprises.
The contemplated initiatives include the creation of a 500-million-U.S-dollar program dedicated to financing trade in Afreximbank member countries where Ecobank conducts banking business.
"It is a cooperation that will lead to a more efficient way of channeling trade finance towards supporting growth of intra-African trade and industrialisation", Ade Ayeyemi, Ecobank Group's CEO said.
According to Benedict Oramah, President of Afreximbank, the collaboration thus established opens up more opportunities for African businesses to access much-needed financing for their trading activities.
"Inadequate access to trade finance remains one of the greatest obstacles to Africa's economic development," he lamented.
Afreximbank is the foremost pan-African multilateral financial institution devoted to financing and promoting intra-and extra-African trade.
Headquartered in Cairo, Egypt, it was established in October 1993 by African governments, African private and institutional investors, and non-African investors.
Ecobank Transnational Incorporated (ETI), incorporated in 1988 in Lome, Togo, is the parent company of the pan-african banking group Ecobank which is currently operational in 36 African countries.