TUNIS, Tunisia, May 23, 2013/African Press Organization (APO)/ – The Board of Directors of the African Development Bank (AfDB) (http://www.afdb.org) approved on Tuesday, May 22 a USD 20 million Trade Finance Line of Credit for UT Bank Ghana (UT Bank) to support the trade finance activities of Small and Medium Enterprises (SMEs) and local corporates in Ghana.
As the Ghanaian economy continues to grow and diversify, there is increasing need to address critical market demand for Trade Finance by supporting businesses in key economic sectors such as agriculture and light manufacturing. This facility will therefore foster financial sector development, enhance regional integration through intra-African trade, and contribute to government revenue generation. Counting roll-overs, the Project is expected to facilitate approximately USD 140 million of trade in essential raw materials, intermediate and finished goods, and equipment to support economic growth in Ghana.
This 3.5-year facility is AfDB’s first trade finance intervention in Ghana since its participation in the Ghana Cocoa Board (COCOBOD) syndicated Commodity Finance Facility in 2009. The Project is designed to enhance UT Bank’s capacity to provide appropriate trade finance support to SMEs and local corporates, thereby promoting inclusive growth and contributing to Ghana’s economic progress.
The facility not only aligns with AfDB’s Ten-year (2013-2022) Strategy and Ghana Country Strategy, but also resonates well with UT Bank’s strategic intent to become a significant provider of trade finance solutions to SMEs in Ghana. AfDB’s additionality in this Project stems from its ability to provide UT Bank with medium term resources that are not readily available in the trade finance market under the prevailing economic environment.
About UT Bank Ghana: UT Bank is a mid-sized, indigenous Ghanaian bank headquartered in Accra, Ghana. Established in 1997 as a non-bank financial institution, UT Bank has over the years transformed into a full-fledged commercial bank that is recognized as a strong SME partner in Ghana. With strong shareholder support from institutional investors, including major Development Finance Institutions, UT Bank is listed on the Ghana Stock Exchange. It has approximately 600 employees and 26 branches across the country.
African Development Bank (AfDB)