Ecobank, Proparco Sign €10m Trade Finance Pact To Boost SMEs

The Ecobank Group and Proparco, the private sector arm of the French Development Agency (AFD Group), have signed a €10m trade finance guarantee facility to support small and medium-sized enterprises (SMEs) in Africa.

The agreement, signed on the sidelines of the Africa Financial Industry Summit (AFIS) 2025, marks a significant expansion of the Ecobank–Proparco Trade Finance Programme, bringing the total guarantees extended to the Ecobank Group since 2018 to €125m.

According to a joint statement, the new facility, which integrates Ecobank Chad into the trade finance programme, is expected to facilitate imports of essential raw materials, particularly those required for local industrial and agricultural production.

This is part of ongoing efforts to stimulate domestic value creation, enhance food security, and bolster economic resilience in one of Africa’s most vulnerable regions.

The programme addresses supply gaps not covered by the local market and aligns with the Food & Agriculture Resilience Mission (FARM) initiative, launched in 2022 by France in collaboration with the European Union, the G7, and the African Union. FARM aims to improve food security and agricultural resilience in developing economies facing high supply risks.

The guarantee facility is also aligned with the Choose Africa programme, spearheaded by the AFD Group through Proparco and Expertise France, to provide financing solutions to African entrepreneurs, startups, and MSMEs through local financial intermediaries.

Ecobank Group Chief Executive Officer, Jeremy Awori, described the agreement as a reflection of both institutions’ commitment to sustainable development and inclusive growth across Africa.

“This renewed partnership with Proparco reflects our shared commitment to strengthening the economic resilience of Chad and the wider region, contributing to the implementation of Chad’s new National Development Plan,” Awori said.

“By facilitating access to essential raw materials, we are supporting local industrialisation, food security and value creation on the continent. Using the combined expertise of our pan-African network and Ecobank International in France, we will continue to facilitate trade and strengthen risk management to build sustainable growth,” he added.

Also speaking, Proparco Deputy Chief Executive Officer, Djalal Khimdjee, expressed optimism about the partnership’s impact on regional trade and SME development.

“We are very pleased to welcome Ecobank Chad to the trade finance programme we co-developed with the Ecobank Group since 2018. This new partnership will benefit local businesses, enabling them to import raw materials and integrate into international value chains to better meet the needs of local communities,” Khimdjee said.

“This transaction brings the total volume of trade finance guarantees granted to the Ecobank Group to €125m,” he added.

The partnership underscores the growing importance of trade finance as a catalyst for SME growth in Africa, where limited access to foreign exchange and credit often constrains business expansion.

Through guarantee schemes such as this, financial institutions are able to mitigate risk and unlock funding for sectors that drive local employment and production.