2023-07-03 11:31:34
Proparco and the International Finance Corporation (IFC) are committed to strengthening their investments in trade operations in Africa.
This common desire for collaboration was revealed on Thursday June 29, 2023 by the agency for financing the private sector in developing countries (Proparco).
Through this partnership, Proparco plans to participate up to 50% in selected IFC trade finance exposures in selected sub-Saharan African countries for a maximum amount of USD 500 million.
According to a press release from Proparco, a first tranche of 200 million US dollars will be devoted to food security.
For its part, the IFC will prioritize intra-African trade transactions, wherever possible.
“Through this initiative, the two institutions aim to increase access to trade finance in Africa. This will result in the training and capacity building of African financial institutions in trade financing”, chairs the Proparco agency.
In addition, the IFC and Proparco plan to mobilize financing to support importing and exporting SMEs through training on modules related to trade finance in Africa.
It should be noted that trade represents more than half of the GDP of the least developed countries. And yet, the cost of trade finance is six to seven times higher in Africa than in OECD (Organisation for Economic Co-operation and Development) countries.
Trade costs can sometimes reach 300% of the value of goods traded in Africa, and intra-African trade transactions remain very low.
In Côte d’Ivoire, Ghana, Nigeria and Senegal, the trade finance gap stands at US$14 billion per year.
Agnes Kayembe
1688384703
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