Ghana, alongside Senegal, Angola, and Botswana, is set to benefit from a $150 million facility aimed at derisking the financial ecosystem under the African Continental Free Trade Area (AfCFTA). This development is a result of a risk participation agreement signed between the African Development Bank (AfDB) and the Trade Development Bank (TDB) on the sidelines of the 2024 Africa Investment Forum in Rabat, Morocco.
According to Ahmed Rashad Attout, Director of the Financial Sector Development Department at AfDB, the agreement is a strategic partnership that will enable the two banks to catalyze approximately $1.8 billion in trade across Africa. This will support access to finance for businesses, including women-owned enterprises and trade products.
The facility is designed to share financing risks and support private sector companies expanding their operations across Africa. It will assist key sectors driving Gross Domestic Product (GDP) to deepen intra-African trade, support development, and uplift living standards.
The AfCFTA aims to create a single, unified market for the continent, boosting economic growth and development. With this facility, Ghana and other participating countries can expect increased access to finance, reduced trade barriers, and improved economic opportunities.
GNA/Ruth Abla ADJORLOLO
