African Development Bank Approves $40 Million Trade Finance Package for Bank One Limited Mauritius | African Development Bank

The board of directors of the African Development Bank Group has approved a $40 million trade finance package in favor of Bank One Limited of Mauritius. The financial package included a $25 million risk participation agreement and a $15 million transaction guarantee.

The Transaction Guarantee Facility allows the Bank to provide up to 100% guarantee on a transaction basis to confirming banks for the non-payment risk arising from the confirmation of trade finance instruments issued by Bank One. On the other hand, the risk participation agreement will provide up to 50% guarantee coverage on a portfolio basis to support trade finance transactions originating from issuing banks in regional Member States. This financial support is expected to help Bank One increase its capacity to support the trade finance needs of key industries, including small and medium-sized enterprises (SMEs) and local businesses in Mauritius and across the continent.

“Given the cross-sectoral nature of trade, the proposed facility, while leveraging Bank One’s footprint, is expected to strengthen the African Development Bank’s efforts to integrate Africa and improve the quality of life of Africa’s people,” said Lamin Drammeh, the bank. Head of Trade Finance, comments on the approval.

The Deputy Director General of the African Development Bank for Southern Africa, Kennedy Mbekeani, whose responsibilities also cover Mauritius, added: “This approval confirms the Bank’s support for financial integration as a cornerstone for private sector development across the globe. continent.”

The African Development Bank estimates Africa’s annual trade finance deficit at about $81 billion. Compared to multinationals and large local companies, SMEs and other domestic companies have more difficulty accessing trade finance. The transaction guarantee agreement and risk participation are some of the strategic tools used by the African Development Bank to narrow the continent’s trade finance gap.

About BankOne:

Bank One is a premier banking institution founded in 2008 in Mauritius. It is jointly owned by Kenya-based I&M Group PLC and Mauritian conglomerate CIEL Ltd. Bank One leverages the strong presence of its two equal shareholders to position itself as a leading Mauritian and regional banking power with continental and global reach.