The guarantee is expected to ease liquidity constraints, strengthen supply chains and improve access to essential goods ranging from foodstuffs to health and education materials.
Under the approved arrangement, the Bank will cover up to 100% of the non‑payment risk borne by commercial banks that confirm letters of credit and similar instruments issued by Ecobank Congo. This risk coverage will help international banks feel more confident in dealing with DRC importers, ultimately supporting trade in services, information and communication technology, transport, health, education and essential commodities such as sugar and cooking oil.
The guarantee addresses the DRC’s short‑term import needs at a time when domestic industrial capacity remains insufficient to meet national demand. The facility forms part of the AfDB’s broader trade finance initiative, launched in 2021, which offers transaction guarantees to eligible African banks after due diligence assessments.
These instruments support letters of credit, commercial loans and promissory notes to facilitate intra‑African and international trade.
Lamin Drammeh, Head of the Bank’s Trade Finance Division, said the deal reinforces efforts to strengthen Africa’s banking systems. He highlighted that hedging confirmation risks on Ecobank Congo’s letters of credit will help streamline trade processes, ease liquidity pressures and expand market access for DRC companies, particularly small and medium enterprises.
Ecobank Congo Managing Director Olivier Brou Kouamé welcomed the agreement, noting that it significantly enhances the bank’s ability to support customers engaged in cross‑border transactions. He said the guarantee will allow the bank to offer more competitive and secure trade finance solutions, contributing to the dynamism of the DRC economy.
Small and medium enterprises are expected to be the main beneficiaries of the guarantee, which will also target businesses owned by women and young entrepreneurs, as well as firms in green growth sectors. The AfDB says the initiative is designed to help diversify DRC’s economy and improve resilience amid fluctuating global market conditions.
–AfDB/ChannelAfrica–
