AATIF signs USD 25m funding and risk sharing agreement with BancABC
BancABC agreement with Africa Agriculture and Trade Investment Fund sees USD 25 million funded risk sharing facility becoming available to agriculture
ABC Holdings Limited, the parent company of BancABC, has announced that following an agreement with the Africa Agriculture and Trade Investment Fund (AATIF), it will increase lending to the agricultural sector across Botswana, Mozambique, Tanzania, Zambia and Zimbabwe.
Making the announcement today Mr Francis Dzanya, Chief Operating Officer of BancABC, said that the agreement signed with AATIF would see USD 25 million made available through BancABC subsidiaries to a wide range of participants in the agricultural sector.
“The mission of the AATIF is to help Africans maximise the potential of the continent’s agricultural production, manufacturing, service provision and trade activities for the benefit of the poor. By making loan capital available the Fund aims to help stimulate agricultural output, production levels and add value across the entire chain of agricultural activities. Knowledge and skills transfer is a major focus that is promoted through AATIF support for contract farming operations”, Dzanya said.
The Chairman of AATIF Thomas Duve added, that the AATIF risk sharing will allow BancABC to increasingly step into transactions along the entire agricultural value chain ideally with longer term funding and fair collateral policies. The 45 % AATIF pari passu risk participation initially covers an incremental agricultural lending portfolio of up to USD 11m, with the remainder being extended as senior loan. This risk participation limit may be raised going forward, subject to a successful roll out of the program.
“BancABC will manage the entire credit assessment and lending relationship with beneficiaries, while sharing the risk equally with the AATIF. The agreement between the two institutions was natural and offered benefits for both parties”, Dzanya said.
BancABC operates in key markets in sub-Saharan Africa and has the network and experience required to ensure that funding is effectively and efficiently channelled through to the agriculture sector.
“We have enjoyed exponential growth across our retail and other operations and, as a bank born in Africa for Africans, have the capabilities to assist AATIF in achieving their objectives. We are proud to be acting as an intermediary for the organisation and being able to play a part in creating a vibrant, competitive agriculture sector on our continent.”
ABC Holdings Limited is the parent company of a number of banks operating under the BancABC brand in Southern Africa, with operations in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe. A representative office as well as group management support services company is located in Johannesburg, South Africa.
ABC Holdings Limited is registered in Botswana which has a primary listing on the Botswana Stock Exchange and a secondary listing on the Zimbabwe Stock Exchange.
Our vision is to be Africa’s preferred banking partner by offering world class financial solutions. We will realise this by building profitable, lifelong customer relationships through the provision of a wide range of innovative financial products and services to benefit all our stakeholders.
The Group offers a diverse range of products in corporate banking, treasury services, Retail & SME Banking, asset management and stockbroking.
For more information visit www.bancabc.com.