VIENNA, (Pakistan Point News - 07th Jun, 2020) The OPEC Fund for International Development, OFID, has signed a US$50 million unfunded risk-sharing agreement with the eastern and southern African Trade and Development Bank, TDB, to improve access to trade finance in eastern and southern Africa.
TDB is a major provider of trade finance for its member states; it plays a critical role in addressing trade finance shortages and forex challenges in the region. It has succeeded in mitigating fuel shortages, securing the sourcing of strategic commodities, and facilitating greater intra and inter-African trade and regional integration, and in turn, socio-economic progress.
Via this agreement, the OPEC Fund and TDB will together support sustainable development in the region by working with partner financial institutions to fund the trade of commodities vital to the socio-economic progress of its economies.
"Improving access to finance for businesses supports SDG 8 on inclusive and sustainable economic growth and decent work for all. This is especially important in sub-Saharan Africa, where the number of people living in extreme poverty is still high. This agreement with TDB also ultimately supports progress toward SDG 1 on ending poverty and SDG 2 on ending hunger," said OPEC Fund Director-General Dr. Abdulhamid Alkhalifa.
In turn, TDB President and Chief Executive Admassu Tadesse, said, "With this agreement, we are delighted to elevate our partnership yet again with the OPEC Fund, one of our valued institutional shareholders since 2018.
In the past five years, TDB’s trade finance portfolio has grown two-fold to US$3.3 billion thanks to our growing partnerships with like-minded financial institutions such as the OPEC Fund, with which we continue to extend access to affordable finance to advance trade and sustainable development impact."
OFID was established in January 1976 by the then 13 member countries of OPEC; including the United Arab Emirates. It is the development finance institution established as a channel of aid to developing countries.
