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Trade-Related Financial Services - AfDB

Trade-Related Financial Services - AfDB

Information dated: 2015
Contact

The Vice-President (Acting)

Operations III:

Infrastructure, Private Sector and

Regional Integration (OIVP)

Tel : +216 71 10 2802

+216 71 10 2002,

+216 71 10 3023

Fax: +216 71 33 2015

E-mail: f.konan [at] afdb.org

g.mbesherubusa [at] afdb.org

p.giraud [at] afdb.org

 

The Vice-President

Operations I: Country & Regional

Programs & Policy (ORVP)

Tel: +216 71 10 2801,

+216 71 10 2064,

+216 71 10 2429

Fax: +216 71 83 2737

E-mail: t.gueye [at] afdb.org,

z.sakala [at] afdb.org

 

The Director

Treasury Department (FTRY)

Tel: +216 71 10 2828,

+216 71 10 2028,

+216 71 10 2453

Fax: +216 71 33 0632

E-mail: n.mouihbi [at] afdb.org,

p.vanpeteghem [at] afdb.org,

m.akin-olugbade [at] afdb.org

 

Head of Trade Finance

Private Sector Department (OPSM)

African Development Bank

Tel: +216 71 10 2285,

Fax: +216 71 83 4178

E-mail : y.kuffour [at] afdb.org

M.Tambwer [at] afdb.org

L.Drammeh [at] afdb.org

 

Trade Finance (Non Transactional)

Chief Trade Finance Officer

NEPAD, Regional Integration &

Trade Department

Tel: +216 7110-1276

Fax: +216 71332694

Email: B.Nekati [at] afdb.org

The Trade Finance Program (TFP)

In addition to financing activities, the TFP will also link the Bank’s efforts to: (i) facilitate trade by reduc­ing/removing cross-border obstacles that currently constrain and increase the risks that undermine trade, (ii) build the regulatory capacity of governments, and (iii) undertake the upstream work of building capac­ity of the client institutions to manage risk and enhance access to trade finance.

The Trade Finance Program (TFP) is the successor to the Bank’s Trade Finance Initiative (TFI) that was launched in 2009 in response to the 2008/09 financial crisis. Encouraged by the success of the TFI and cognizant of Africa’s large and growing trade finance needs, the Bank is in the process of establishing a USD1 billion trade finance program to take its intervention beyond crisis response and consolidate its position as a major pro­vider of trade finance on the continent. The TFP brings the Bank in step with other Multilateral Development Banks (MDBs) who all have been operating trade facilitation programs for nearly a decade on average.

The TFP has the dual objective of addressing the shortage of trade finance for African corporates and SMEs by providing both funded and non-funded solutions; and providing rapid response, countercyclical support whenever normal trade finance facilities are constrained. At the outset the Program will offer three distinct but related products, namely: Risk Participation Agreement (RPA); Trade Finance Line of Credit (TFLOC); and Commodity Finance Facility (CFF).

Under the RPA, AfDB would share the credit risk (usually up to 50% of a transaction) on a portfolio of eligi­ble trade transactions originated by local banks and confirmed by international confirming banks. The prod­uct is designed to provide partial cover to regional and international commercial banks for assuming the credit risk of local banks who issue documentary letters of credit and similar trade instruments. The RPA is an unfunded facility and the Bank’s direct counterparties are the confirming banks. TFLOC will be provided directly to local banks for the financing of exclusively trade-related transactions in Africa, while the CFF will provide direct support to commodity aggregators such as commodity boards for the financing of the export and import of agricultural commodities and inputs.