AATIF concludes EUR 25m senior loan with EBID to increase outreach and lending within the agriculture value chain in West Africa
EBID Press Release
On 17th May 2022, the first tranche of a EUR 25m senior loan was disbursed by AATIF to the ECOWAS Bank for Investment and Development (EBID), aimed at increasing outreach and lending to the agriculture value chain within least developed countries (LDCs) in West Africa.
Founded in 1975 as the Fund for Cooperation, Compensation and Development of the Economic Community of West African States (ECOWAS Fund), the fund was converted into the ECOWAS Bank for Investment and Development (EBID) in 1999. Today, the bank is 100% publicly owned by the ECOWAS member states, within which it provides financing to both public and private sector clients, promoting growth in the agricultural sector by funding companies and projects that would not have been financed on a standalone basis.
The bank’s well-diversified regional approach and support for LDCs allow it to target countries in West Africa that rely heavily on agriculture for economic growth and employment opportunities - countries where AATIF would otherwise be unable to establish direct exposure into. Leveraging on its strong presence in rural areas, the bank’s lending contributes greatly to development of the agriculture sector both directly and indirectly, including through providing necessary access to transportation, water, electricity, and communication infrastructure.
Additionally, EBID’s support for smallholder farmers through its investment in The West African Initiative for Climate-Smart Agriculture fund, geared towards improving the food security and income of 90,000 smallholder households, is just one of the bank’s impressive initiatives that AATIF is keen to align with and support.
AATIF’s loan with a tenor of seven years will be used increase the bank’s agriculture portfolio, providing long term funding and potential technical assistance to support the bank in improving it’s understanding of and outreach to the agriculture sector.
“Our investment with EBID represents a great opportunity to provide further access to finance for smallholder farmers in Least Developed Countries within the ECOWAS region in a systematic way. The Bank’s commendable commitment to enhancing and growing the local agriculture industry, especially in rural areas, is one we are proud to align with.”
The ECOWAS Bank for Investment and Development (EBID)
The ECOWAS Bank for Investment and Development (EBID) is the financial institution established by the 15 Member States of the Economic Community of West African States (ECOWAS).
The Africa Agriculture and Trade Investment Fund (AATIF)
AATIF is a public private partnership dedicated to promoting the food / agri sector across Africa by providing patient capital and technical assistance. The fund provides debt financing to small, medium and large-scale agribusinesses along the entire agriculture value chain as well as financial institutions active in the sector. Ticket sizes range from USD 3.5m up to USD 30m per project with a possible maximum tenor of 12 years.