Strengthening Trade and Economic Resilience in Africa
Proparco, a French development agency, and the Ecobank Group have entered into a significant trade finance guarantee agreement worth €10 million. This initiative is specifically designed to support Small and Medium-sized Enterprises (SMEs) across Africa. The agreement was announced on the first day of the Africa Financial Summit 2025, highlighting its importance in the region’s economic landscape.
The trade finance guarantee facility is directed towards Ecobank Chad, aiming to facilitate the import of raw materials that are crucial for value creation within the country. These imports will help address supply gaps that are not met by the local market, thereby supporting industrial growth and economic development.
This initiative aligns with the Food & Agriculture Resilience Mission (FARM), an effort launched in 2022 by France in collaboration with the European Union, the G7, and the African Union. FARM’s primary goal is to enhance food security in the most vulnerable African nations, ensuring that communities have access to essential agricultural products and resources.
Additionally, this guarantee is part of the Choose Africa programme, managed by the AFD Group. The AFD Group includes Agence Française de Développement, Proparco, and Expertise France. The programme provides tailored financing solutions to small African businesses, start-ups, micro-enterprises, and MSMEs. It supports these enterprises throughout their growth phases, leveraging the expertise of local partners backed by the AFD Group.
Strategic Partnership for Sustainable Growth
Jeremy Awori, Chief Executive Officer of the Ecobank Group, emphasized the significance of this renewed partnership with Proparco. He stated, “This renewed partnership with Proparco reflects our shared commitment to strengthening the economic resilience of Chad and the wider region, contributing to the implementation of Chad’s new National Development Plan.”
Awori further noted that by facilitating access to essential raw materials, the partnership is supporting local industrialization, food security, and value creation on the continent. He added that the combined expertise of Ecobank’s pan-African network and Ecobank International in France will continue to support customers by facilitating trade and strengthening risk management to build sustainable growth.
Djalal Khimdjee, Deputy Chief Executive Officer of Proparco, expressed his satisfaction with the partnership. He said, “We are very pleased to welcome Ecobank Chad to the Trade Finance programme that we have co-developed with the Ecobank Group since 2018. This new partnership will benefit local businesses, enabling them to import raw materials and become part of the international value chain to better meet the needs of local communities.”
Khimdjee also highlighted that this transaction brings the total volume of trade finance guarantees granted to the Ecobank Group since 2018 to €125 million. This underscores the long-term commitment of both organizations to fostering economic growth and resilience in Africa.
Expanding Opportunities for SMEs
The agreement between Proparco and Ecobank Group represents a significant step forward in supporting SMEs across Africa. By providing access to critical raw materials, the initiative helps local businesses integrate into global supply chains, enhancing their competitiveness and sustainability.
Through the Choose Africa programme, SMEs receive the necessary financial tools and support to thrive in challenging markets. This approach not only strengthens individual businesses but also contributes to broader economic development by creating jobs and stimulating local economies.
Moreover, the collaboration between Proparco and Ecobank Group demonstrates the power of strategic partnerships in driving meaningful change. By combining resources, expertise, and networks, these organizations are making a tangible impact on the ground, helping to build a more resilient and prosperous Africa.
As the Africa Financial Summit 2025 continues, the focus remains on innovative solutions and collaborative efforts to address the continent’s economic challenges. The €10 million trade finance guarantee is a testament to the growing momentum in supporting SMEs and fostering sustainable development across Africa.