AKA Ausfuhrkredit-Gesellschaft mbH and a German Banking Consortium Grant EBID €95m Lines of Credit
LOME, TOGO – 12 November 2020 – The ECOWAS Bank for Investment and Development (EBID) has secured two lines of credit worth 95 million euro from AKA Ausfuhrkredit-Gesellschaft mbH (AKA) and a consortium of German banks. Dr. George Agyekum DONKOR, President of EBID and Mr. Marck WENGRZIK, Chief Executive Officer (CEO) of AKA consummated the transaction via a symbolic virtual conference on Thursday, 12 November 2020. This unprecedented loan agreement marks the beginning of a mutually beneficial partnership between EBID and AKA.
The loan agreement comprises a line of credit in the amount of 45 million euro for a period of ten years and a 50 million euro one-year revolving line of credit. The purpose of these substantial credit facilities will be for the funding of projects within the export contract between the West African Fertilizer Association (WAFA) and Ferrostaal Equipment Solutions GmbH. These transactions will be covered by Euler Hermes, the German export promotion scheme.
The credit facilities will be used to construct warehouses and factories, as well as to procure fertilisers and farming equipment. The signing of the loan agreement is a significant milestone for the two institutions as it marks the onset of a bilateral cooperation in financing key import projects in the green finance sector as well as hydro, solar and wind energy.
This collaboration between West Africa and Europe has been fashioned to not only boost trade between the two regions, but to also provide countless opportunities for job creation, skills and technology transfer.
Also in attendance at the conference were Vice-Presidents of WAFA, Mr. Bakayoko ZOUMANA and Mr. Innocent OKUKU, the ECOWAS Commissioner for Agriculture, Mr. SANGARE, and General Manager of Ferrostaal Equipment Solutions GmbH, Dr. Manuel PROBST.
The new partnership between EBID and AKA will in no doubt help to intensify and accelerate EBID’s intervention in the agro-industry in ECOWAS and improve food security in the sub-region.