In efforts to bolster trade between the UAE and the lender’s member states in West Africa, Abu Dhabi Exports Office (ADEX), the export-financing arm of the Abu Dhabi Fund for Development (ADFD), has signed a financing agreement with the ECOWAS Bank for Investment and Development (EBID).
According to The National News, under the agreement, a line of credit of $20 million will be opened between the two entities, leading to an increase in the volume of trade between the UAE and Ecowas member states, the entities said in a joint statement on Tuesday.
Adex also aims to establish additional credit lines and boost joint financing to promote Emirati exports in the African market.
“The agreement underscores Adex’s effort to support the UAE in developing the export sector, diversifying the economy and enabling Emirati companies to expand their footprint into Africa,” Mohamed Al Suwaidi, Director General of ADFD, said.
The deal will enable Adex to offer a credit line to Ecowas bank to refinance its lending to importers from its member countries for the purchase of Emirati goods and services, he said.
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EBID is a regional development bank established by the 15 member states of the Economic Community of West African States (Ecowas), comprising Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.
It finances developmental projects and programmes covering infrastructure and basic amenities, rural development and environment, industry and social services sectors, through its private and public sector windows.
EBID offers long, medium and short-term loans, equity participation, lines of credit, refinancing, financial engineering operations and related services.
“Our partnership [with Adex] will contribute to charting a course for further economic development and enhanced trade between the two sides,” George Donkor, president and chairman of EBID, said.
“We will work together to take advantage of available opportunities and Adex’s financing facilities to enable importers in Africa to acquire goods and services from the UAE in an easier and safer way,” Mr Donkor said.
Adex was set up by ADFD to help drive international trade by providing loans and guarantees to overseas buyers seeking to import goods and services from the UAE.
In May last year, it signed a $30m trade finance agreement with the Eastern and Southern African Trade and Development Bank to boost trade.
“This will strengthen relations between the two entities, leading to fulfilment of common interests and acceleration of economic growth in West Africa and the UAE,” Mr Al Suwaidi added.
