IFC boosts trade finance in West Africa with new bank partnerships

IFC has announced new partnerships with Coris Bank International in Benin and Togo and Banque El Amana in Mauritania that aim to expand trade finance to support sustainable economic growth and create jobs in the West Africa region.

The financial sector in West Africa has increased significantly in size and quality in recent years, with regional banking groups now playing a dominant role. However, insufficient access to credit facilities that finance import and export transactions is constraining the role of cross-border trade as a driver of development in the region. A 2022 study by IFC and the World Trade Organization found that only 25% of trade in key West African economies is supported by trade finance.

“There is significant potential for an economic boost in West Africa by harnessing intra-Africa trade. Increasing the availability of trade finance in the region is therefore critical to support businesses and job creation”, said Aliou Maiga, IFC’s Regional Industry Director.

The new partnerships were signed at the Africa CEO Forum, co-hosted by IFC and Jeune Afrique in Abidjan, Cote d’Ivoire, on May 12-13 to support a dynamic and forward-looking private sector in Africa, and included:

· Banque El Amana: A trade finance facility of up to US$10m to enable the bank to finance imports of essential goods to the country.

· Coris Bank International: Two agreements with Coris Bank International Benin and Coris Bank International Togo for trade finance facilities of up to US$10m each.

All three agreements fall under IFC’s Global Trade Finance Programme (GTFP), which aims to support trade in emerging markets by providing guarantees to cover payment risks for trade-related transactions. Thay are also part of IFC’s US$1bn Africa Trade and supply chain finance programme (ATRI), which aims at supporting Africa’s regional trade development and helping to reduce the continent’s reliance on imports.

Additionally, IFC announced an advisory agreement with Wegagen Bank SC, Ethiopia, to strengthen the bank’s risk and treasury management capabilities. This will contribute towards building a robust treasury and risk management framework for the bank and enhance the banks’ capacity to deliver trade financing, particularly in new or challenging markets where trade lines may be restricted.

About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record US$56bn to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilising private capital to create a world free of poverty on a livable planet.

About Coris Group
Coris Holding is a financial company operating in nine West African countries under the Coris Bank International banner. The third-largest banking group in the WAEMU, the pan-African Coris Banking Group aims to accelerate growth in the areas where it operates by actively participating in the financing of local economies, with an offer that effectively addresses all customer segments, particularly SMEs/SMIs. It operates in the infrastructure, agriculture, services, trade, mining and industry sectors, as well as in inclusive and Islamic finance for greater financial inclusion.

About El Amana
Banque El Amana is a leading financial institution in Mauritania, offering a wide range of banking products and services to its individual, corporate, and institutional clients. The bank is known for its commitment to innovation and its constant focus on improving customer experience.

About Wegagen Bank
Established in November 1996, Wegagen Bank S.C. emerged from the visionary mindset of sixteen founding members who recognized the pivotal role financial institutions would play in fostering sustained economic development. Wegagen Bank provides conventional and interest-free Wegagen Amana banking services offered through 443 branches nationwide, 394 ATMs, 457 point-of-sale (POS) machines, 4,800 agents, as well as through internet and mobile banking platforms.

Source: IFC