AfDB approves $250m facility to ABSA Bank

The African Development Bank (AfDB) has approved an unfunded $250 million Risk Participation Agreement with South Africa-headquartered ABSA Bank.

AfDB's Financial Sector Development Director Stefan Nalletamby said: "This facility, through a 50/50 risk sharing approach, will help to promote broad-based economic growth on the African continent through the increased facilitation of import-export activities of African corporates and SMEs, and increase intra-Africa trade."

Forecasts estimate that the facility will catalyse about $2 billion worth of trade in three years.