The African Development Bank signed a $50 million risk participation agreement (RPA) on Wednesday with investment and corporate bank Natixis.
The RPA aims to meet the growing demand of African markets for trade finance in key economic sectors such as agribusiness, health, services and industry.
“This historic agreement allows us not only to better support our clients in Africa, but also to further strengthen the strategic relationship that we have the privilege of developing with the African Development Bank,” Marc Jaskowiak, a Natixis representative, said.
Moreover, it will promote the diversification of the economy by generating growth, jobs and additional tax revenues for many African nations.
Additionally, the deal will benefit African commercial banks and SMEs by guaranteeing them better access to financing for their foreign trade operations.
The AfDB’s Director of Financial Sector Development Stefan Nalletamby noted the deal responds to the bank’s desire to develop financial partnerships with strong non-regional banks, boost trade finance in Africa and support intra-African trade.