Opening the doors for creating more business opportunities in the African continent, the Abu Dhabi Exports Office (ADEX), the export-financing arm of the Abu Dhabi Fund for Development, recently entered into an agreement with ECOWAS Bank for Investment and Development (EBID) to open a line of credit of $20 million between them.
The deal was signed virtually by Khalil Al Mansoori, Acting Director General of ADEX, and Dr. George Agyekum Donkor, President and Chairman of the Board of Directors of EBID. The pact will lead to enhanced strategic cooperation and an increase in trade between the UAE and the Economic Community of West African States (ECOWAS) member states. Also, the additional credit lines and the provision of easier means for joint financing will boost Emirati exports in the African market.
Flexible, Reliable Financing
“The agreement is a continuation of ADEX’s effort to expand the scope of its partnerships with African countries. It complements the agreement signed last year by ADEX with the Eastern and Southern African Trade and Development Bank (TDB). The latest partnership agreement will consolidate our effort to support and develop national exports through the provision of flexible and reliable financing, thereby strengthening the presence of Emirati companies in West Africa,” said Khalil Al Mansoori.
The Emirates’ foreign trade grew up to 27 percent in 2021 compared to 2020 and about 11 percent against the pre-pandemic levels of 2019 with a value of nearly $545 million. The national non-oil exports also recorded a growth of 47.3 percent over the pre-pandemic average and a growth of up to 17 percent during Q1 2022. With the latest agreement creating additional credit facilities and innovative solutions, exporters and importers will have more liquidity and cash to see an uptick in trade volumes.
Amplifying Economic Activities
“This novel partnership between EBID and ADEX is a further illustration of the bank’s continued efforts to mobilize and diversify its resources to amplify economic activities within the ECOWAS sub-region as well as between the region and the rest of the world. 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,” stated Dr. George Agyekum Donkor.
EBID is a regional development bank established by the 15 member states of ECOWAS, comprising Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. 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 $30 million trade finance agreement with the Eastern and Southern African Trade and Development Bank to boost trade.
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