Miga backs African trade finance with €349mn guarantee.

TLDR:

• Miga sticks by €349mn guarantee for African trade finance
• World Bank’s investment guarantee agency renewed cover for a loan to TDB

The Multilateral Investment Guarantee Agency (Miga) has renewed a €349mn cover for a syndicated loan provided to the Eastern and Southern African Trade and Development Bank (TDB) by Standard Chartered, with a focus on financing trade transactions in Africa. This move aims to support TDB’s trade finance operations, close the trade finance gap in Africa, and attract foreign direct investment. Miga’s guarantees offer a crucial instrument to provide liquidity for low- and middle-income countries.

This development follows a partnership agreement between TDB and the African Development Bank (AfDB) to boost intra-Africa trade flows, supporting up to US$1.8bn in trade over three years. Additionally, Miga is set to finalize a €190mn trade finance facility with Standard Chartered for the government of Senegal, underpinning innovative trade finance solutions that drive sustainable development in the region.

Overall, Miga’s commitment to supporting trade finance in Africa through partnerships with financial institutions like TDB and Standard Chartered highlights the importance of bridging the trade finance gap and fostering economic growth in the region.