ABSA AND AFRICAN DEVELOPMENT BANK SIGN $250M RISK PARTICIPATION AGREEMENT

CAPE TOWN - Financial services group Absa and the African Development Bank Group (AfDB) have signed a $250-million (more than R3 billion) risk participation agreement (RPA) which, when fully utilised, is estimated to mobilise over $2 billion (more than R29 billion) worth of trade business over three years.

The RPA was signed on November 12, on the side-lines of the African Investment Forum held in Johannesburg.

The group said this facility, through a 50:50 risk-sharing approach, would help to promote broad-based economic growth on the African continent through increased facilitation of import-export activities of African corporates and small and medium-sized enterprises. It would furthermore increase intra-Africa trade and regional financial integration in line with the AfDB’s High 5 strategic priorities.

The group said this facility, through a 50:50 risk-sharing approach, would help to promote broad-based economic growth on the African continent through increased facilitation of import-export activities of African corporates and small and medium-sized enterprises. It would furthermore increase intra-Africa trade and regional financial integration in line with the AfDB’s High 5 strategic priorities.

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