• AfDB provides €5 million guarantee to secure trade finance operations

• Facility targets SMEs and key imports, including essential goods

• Move supports a banking sector with low financial inclusion

Ecobank Central African Republic, led by Félix Landry Ndjoumé, signed an agreement on April 29 with the African Development Bank (AfDB) for a €5 million guarantee facility, or about $5.8 million.

The mechanism aims to secure international trade transactions and improve access for local businesses to the financial tools needed for cross-border trade.

A targeted tool for trade finance

Under the agreement, AfDB provides Ecobank with a guarantee line covering instruments such as letters of credit and bank guarantees. The goal is to reduce risk for partner financial institutions, ease trade flows, and improve access to trade finance, particularly for small and medium-sized enterprises.

The facility will support imports and strengthen the capacity of companies engaged in international trade. It is expected to help increase the import of essential goods and equipment used in production.

The agreement follows a similar approval by AfDB in October 2024 for a facility of the same amount granted to Ecobank Central African Republic. That earlier mechanism allowed coverage of up to 100% of non-payment risk borne by confirming banks when validating letters of credit issued by Ecobank. It targeted sectors such as telecommunications, agro-industry, and manufacturing.

Support for a limited banking system

The initiative comes as financial inclusion remains low in the Central African Republic. During the Bangui Financial Days in December 2025, Félix Landry Ndjoumé, who also heads the country’s association of credit institutions, said the banking penetration rate stands at 7%.

He noted that about 70% of the population still operates in the informal sector, while only a small share of households holds a bank account.

In this context, strengthening Ecobank’s trade finance capacity could help meet the needs of the local economy. By improving access to guarantees and letters of credit, the partnership with AfDB may support trade flows, reinforce supply chains, and open new financing options for businesses.

Chamberline Moko