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The African Development Bank (AfDB) has signed a $50 million risk participation agreement (RPA) with Natixis, a French corporate and investment bank. The 50/50 risk-sharing agreement covers a portfolio of commercial transactions totalling $100 million, which is expected to support commercial operations worth $600 million in Africa over the next three years.

According to the AfDB, the agreement will benefit commercial banks as well as small and medium enterprises (SMEs) on the continent by guaranteeing them better access to financing for their foreign trade operations. The RPA will meet the growing demand of African markets for trade finance in key economic sectors such as agribusiness, health, services and industry. It will also promote the diversification of economies, generate growth, jobs and additional tax revenues for several African countries.

“This historic agreement allows us not only to better support our clients in Africa but also to further strengthen the strategic relationship that we have the privilege of developing with the African Development Bank,” Marc Jaskowiak, Managing Director and Senior Banker at Natixis Sub-Saharan Africa.

The AfDB’s Director of Financial Sector Development, Stefan Nalletamby, said the signing of the agreement is in line with the Bank’s Trade Finance Programme endorsed in 2018. The programme seeks to develop financial relationships with strong non-regional banks to boost trade finance in Africa and support intra-African trade.

Natixis – a subsidiary of Groupe BPCE, the second-largest banking group in France – has expertise in four business areas, including asset and wealth management, corporate and investment banking, insurance and specialized financial services. In addition to serving its institutional investors’ clientele across the world, Natixis also supports the individual, professional and SME clients of Groupe BPCE. Groupe BPCE serves over 31 million customers through its two networks: Banque Populaire and Caisse d’Epargne.