Ecobank Transnational Incorporated is one of IFC's key long-term clients. Dating back more than fifteen years, the relationship now is stronger than ever, thanks to a recently-announced partnership to help strengthen Africa's banking sector, enhance regional trade, and help the Togo-based banking group increase lending to small and medium enterprises.
Supporting the development of a stronger and more inclusive financial sector is an important part of IFC’s work in Africa, helping attract more investments to the region and strengthening local economies.
Enabling financial institutions to expand the services they provide to people and businesses that have traditionally not targeted, including smaller and women-owned businesses, is also an important part IFC’s work with financial markets in Africa.
The latest partnership with Ecobank, which was signed in September, is in line with this strategy.
IFC is providing up to $213 million to the bank, consisting of a $100 million convertible loan to support its regional expansion, a $25 million loan and advisory services to Ecobank Nigeria to promote lending to smaller businesses, and up to $88 million in guarantees against the underlying trade transactions of several Ecobank subsidiaries—including those in Benin, Burkina Faso, Cote d’Ivoire, Mali, Niger, Nigeria, Senegal, and Togo.
"Working with Ecobank’s extensive network will enable us to have a greater development impact in West Africa," says Yolande Duhem, IFC Director for West and Central Africa. “The banking group is one of our key strategic partners in promoting the region’s financial system."
SUPPORTING IMPROVEMENTS
IFC's relationship with Ecobank started some 15 years ago with an investment in Ecobank Ghana. Since then, IFC has invested in a number of the group’s subsidiary, taking a stake in the group’s holding company in 1999.
IFC has also supported improvements in the group's governance structure and social and environmental standards. Ecobank is today one of Africa's foremost independent regional banking groups, with operations in 25 African countries and a listing on stock exchanges in Côte d’Ivoire, Ghana, and Nigeria. In addition to providing financing,
IFC’s latest partnership with Ecobank marks the start of an even deeper engagement with the banking group. Plans are being laid to collaborate on increasing financing for critical sectors of Africa’s economy, including agribusiness, education, health, housing, and infrastructure. IFC is also supporting the bank as it grows its microfinance loans and products in several countries, including Nigeria, Senegal, Ghana and Cameroon.
For more information contact:
Houtan Bassiri
Communications Officer
Johannesburg, South Africa
Tel: +27 11 731 3179
Email: hbassiri@ifc.org
