The African Export Import Bank (Afreximbank) and the UK's development finance institution, CDC Group, have signed a US$100 million participation agreement to support the bank's Trade Facilitation Programme.

The agreement also commits CDC to supporting Afreximbank's Trade Confirmation Guarantee Programme, in which the bank takes direct risks on African banks by confirming letters of credit (L/Cs) issued by them on behalf of African importers.

Trade services

Under the agreement, the UK development institution will provide unfunded risk participation while the bank will provide trade confirmation services, guarantees and reimbursements.

Afreximbank's Trade Confirmation Guarantee Programme offers full guarantees to international banks to resolve the issue of lack of credit.

Afreximbank roadshow

The pan-African bank focused on trade is in the midst of a road show to 10 African countries to promote its trade finance offerings.

The road show takes in Senegal, Guinea, Ghana, Sierra Leone, Rwanda, Tanzania, Cameroon, Democratic Republic of Congo, Mali and Burkina Faso.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.