Finance

Ghana International Bank to boost Africa trade

Ghana International Bank to boost intra-African trade. (Image source: Adobe Stock)

Ghana International Bank (GHIB) has signed a trade finance facility worth US$50mn to boost intra-Africa business across a number of sub-Saharan markets

The funding package covers Sierra Leone, Liberia, The Gambia, Benin, Democratic Republic of Congo, Rwanda and Tanzania.

It is supported by British International Investment (BII), the UK’s development finance institution.

Under a Master Risk Participation Agreement (MPRA), the US$50mn package will enable GHIB to support more businesses and facilitate trade flows in the target countries.

It addresses the general lack of credit appetite for frontier markets in Africa for reasons including high risk perception and comparatively lower volumes.“

At GHIB we believe our success over the last 65 years is rooted in a deep understanding of African risk,” said Dean Adansi, GHIB’s CEO.

“This partnership with British International Investment represents a viable path through which we can structure partnerships that leverage this deep knowledge of risk into profitable and impactful transactions.”

Increased trade finance can also enable local firms to import the commodities and equipment they need to sustain and grow their businesses.

The collaboration leverages GHIB’s extensive network and track record in trade finance and allows BII to engage in a partnership that addresses the expanding trade finance gap in African markets, especially under challenging economic conditions.

BII’s involvement brings essential foreign exchange dollar liquidity, critical for the import of key goods to GHIB’s operating markets.

“With this deal, we are employing a structure that uses our deep knowledge and access of the market, harnessed together with the superior scale and capacity of BII,” said Adansi.

“Together, we are bringing this to support and expand opportunity in these emerging markets enabling real GDP growth. Our research indicates that each dollar of trade unlocks about US$1.3 into the GDP of our markets. We will work to make this deal a success, as it will open the way for more liquidity injections into the market.”

BII’s country director for Ghana, Kwabena Asante-Poku, said many African countries have faced challenging economic conditions in recent years that have impacted growth and livelihoods.

“Trade remains a key driver of growth for African economies especially in frontier markets like Sierra Leone, Liberia and The Gambia. Enhancing the flow of trade credit and financial intermediation to these markets will ensure access to essential goods and services which in turn drives sustainable and inclusive economic growth,” said Asante-Poku.

BII seeks to strengthen economic resilience in Africa

Ecobank to boost Africa’s women entrepreneurs

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Ecobank is championing Africa's female entrepreneurs. (Image source: Adobe Stock)

Ecobank has expanded its innovative ‘Ellevate’ financing offer to further assist the growth of Africa’s women entrepreneurs

The bank has expanded its programme — now named ‘Ellevate 2.0’ to become “bigger, better and more inclusive”, it said in a statement, supporting individual entrepreneurs, including those in the formal and informal sectors.

“We recognise and applaud the role that women entrepreneurs play in driving socio-economic impact across Africa and are committed to supporting them at every stage of their entrepreneurial journey,” said Jeremy Awori, Ecobank’s CEO, Ecobank.

“Since the launch of the Ellevate programme we have made significant progress, disbursing over US$200mn in loans, providing business networking opportunities, and offering leadership and capacity-building training for businesswomen.”

From supporting corporate businesswomen, small and medium-sized entrepreneurs to individual entrepreneurs, and those in the informal sector, all can now benefit from its enhanced financial and non-financial solutions, he noted.

“Today, Ellevate 2.0 heralds in a new era for gender financing. It is bigger, better and more inclusive, delivering exceptional value to female entrepreneurs and women business leaders. Enhancing our products and solutions for women entrepreneurs to position Ecobank as their bank of choice is an integral component in accelerating the success of our Growth, Transformation and Returns strategy’s objectives. It also supports our group-wide objective of promoting gender equality and contributing to sustainable development.”

The initiative was first established to bridge the gender financing gap for Africa’s women entrepreneurs and to strengthen Ecobank’s commitment to women-owned, women-led, and women-focused businesses.

The enhanced Ellevate 2:0 offer now includes increasing access to finance with unsecured loans of up to US$50,000, competitive interest rates and favourable collateral requirements, as well as accommodating customers with a two-year track record instead of the industry-standard three years.

Ecobank has also pledged to help its clients identify new customers and access new markets across Africa through its innovative online matchmaking MyTradeHub platform.

The enhanced programme will be launched by nine of Ecobank’s affiliates in Burkina Faso, Cameroon, Côte d’Ivoire, Ghana, Guinea, Kenya, Senegal, Togo and Zimbabwe by the end of March 2025.

It will then be rolled-out in phases across all our other sub-Saharan African affiliates throughout the year.

The World Bank estimates that closing the gender gap in Africa could add US$2.5trn to the continent's GDP by 2025, underscoring the urgency of investing in women – not just for social justice, but for a more prosperous and equitable future for all Africans.

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Flutterwave expands payments in Zambia

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Flutterwave empowers businesses across multiple industries to streamline payments, lower transaction costs, and scale efficiently in both domestic and global markets. (Image source: Adobe Stock)

Flutterwave, a leading payments technology firm in Africa, has obtained a Payment System License to operate in Zambia

This approval enables Flutterwave to provide secure and cost-effective mobile money services to businesses in Zambia, fostering both local and international commerce while enhancing financial inclusion and economic growth.

Zambia presents a strong growth opportunity for Flutterwave, given the country’s rising internet penetration and widespread reliance on mobile money for daily transactions. Mobile money services account for nearly 70% of Zambia’s financial inclusion rate. With its mobile money collection and payout solutions, Flutterwave empowers businesses across multiple industries to streamline payments, lower transaction costs, and scale efficiently in both domestic and global markets.

“Zambia is a market with enormous potential for growth and innovation, so we are excited to bring our payment solutions here,” said Olugbenga ‘GB’ Agboola, founder and CEO of Flutterwave. “Our goal is to provide businesses across the entire African region with the tools they need to compete not just locally but globally. Flutterwave’s infrastructure now stretches across the majority of Africa and with our new license in Zambia, we are one step closer to achieving our mission. At Flutterwave, we believe that by simplifying payments, we can unlock new opportunities for businesses in Zambia and contribute to the country’s broader economic development.”

For international businesses expanding into Zambia, Flutterwave offers a dependable payment gateway, facilitating smooth local transactions and supporting a wide range of payments, including consumer and business-to-business transactions. Likewise, Zambian businesses seeking global market access can leverage Flutterwave’s cross-border payment solutions to receive payments from the diaspora and conduct international trade seamlessly.

“Acquiring the Payment System License in Zambia is a crucial step in our Pan-African expansion strategy,” said Oluwabankole Falade, chief regulatory officer at Flutterwave. “This license allows us to not only support Zambian businesses in growing and competing globally but also to ensure that our operations are in full compliance with local regulations. We are deeply grateful to the Bank of Zambia for their trust and for the opportunity to work within Zambia's financial ecosystem. We are committed to collaborating closely with the Bank of Zambia and other regulatory bodies to promote financial innovation and drive economic growth.”

With a presence in over 30 countries, Flutterwave has established itself as a trusted payments partner for businesses across Africa. Its expansion into Zambia underscores its dedication to empowering African enterprises and advancing economic growth through digital payments.

South Africa’s DMA on the acquisition trail

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South Africa's DMA on the acquisition trail. (Image source: Adobe Stock)

South Africa-headquartered DMA has agreed to acquire a majority stake in Saxo Australia from Saxo Bank, a leading online trading and investment specialist

DMA is a global leader in all-in-one software solutions for financial advisers and wealth managers.

As part of the acquisition and partnership, DMA will leverage Saxo Bank's platform and trading technology for clients for the Australian market.

The Johannesburg-based group will assume 80.1% ownership of Saxo's Australian business, subject to regulatory approval, with Saxo Bank retaining 19.9%.

With the transaction, Saxo's award-winning platforms, product range, competitive prices and interest rates will be complemented and strengthened by DMA's business-to-business knowhow, world-class adviser offering and track record of growth.

“We believe DMA’s platform offering will bring tangible benefits to Australian financial advisers and wealth managers, while the business will continue to focus on delivering high-touch, high-quality service for self-directed retail clients," said DMA's CEO, Richard North.

"It'll be the best of Saxo and the best of DMA and we think that adds up to the marketplace's best choice for investors and partners across the entire lifecycle.”

This transition represents an expansion of an existing partnership between DMA and Saxo in South Africa, the Netherlands and the UK.

In these regions, DMA already leverages Saxo's capabilities, outsourcing the brokerage business model, managing all aspects of trade orders, execution, settlement and post-trade operations.

Saxo's open architecture means that DMA can build additional interfaces, digital services and trading experiences for Australian clients.

Currently, more than 160 wealth managers and adviser networks across Africa, Europe, and the United Kingdom use DMA to access global markets.

Specifically for the Australian market, Saxo's banking as a service (BaaS) solutions paired with DMA's software solutions will enable Australian institutional partners, such as financial advisers and asset and fund managers, to connect front, middle, and back-office functions under one solution.

Saxo will deliver the best-in-class digital investing and trading platforms, and will also provide the back-office infrastructure, from clearing and settlement to execution and custody.

This will support financial services firms to reduce back-office cost and complexity and enhance client-facing services.

The new business will retain Saxo Australia's staff, led by its CEO, Adam Smith, while looking to bolster its Australia-based workforce to ensure clients get the best investing and trading experience.

The name and brand of the new business will be determined after a transitional period, with the business to continue operating as Saxo Australia in the meantime.

The sale comes after Saxo Bank in June 2024 announced a review of strategic opportunities in the Asia-Pacific, seeking to accelerate its growth in the region.

"We will ensure a smooth transition and aim to enhance the offerings and services provided,” said Smith. “The clients of Saxo Australia will notice absolutely no disruption in service, product range, or platform access. We are very pleased to partner up with DMA and believe that this will be a game changer for Australian clients.”

Libya joins Afreximbank to boost trade

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This partnership with Afreximbank offers a unique opportunity for Libya to expand its trade ties across the continent and drive economic growth. (Image source: Adobe Stock)

The State of Libya has officially joined the African Export-Import Bank (Afreximbank), becoming the 53rd member, marking an important step toward enhancing continental trade and economic integration

This accession reflects Libya’s commitment to advancing Africa’s integration agenda through trade and investments, particularly in North Africa.

This partnership opens the door for Libya and Afreximbank to collaborate on several key development projects, with a focus on trade facilitation, infrastructure, and financial support. Notable projects include financing the development of the Misurata Free Zone and the construction of a road linking Libya, Chad, and Niger, which is expected to boost intra-African trade. Afreximbank will also provide technical and financial support to the Sahel-Saharan Bank for Investment and Trade (BSIC) to expand its operations in East Africa and assist Libyan exporters in gaining access to trade finance and African markets.

Minister Al-Mabrouk Abdullah highlighted the strategic importance of this partnership for Libya’s economic reconstruction and diversification, stated, “This partnership will not only provide vital financial and technical support to Libya but will also enhance the country’s role in intra-African trade.”

Benedict Oramah, president and chairman of Afreximbank, welcomed Libya’s membership, emphasizing the country’s historical significance within the continent:
“We are excited to warmly welcome the State of Libya to the Afreximbank Global Africa family. Libya’s historical connections with the rest of the continent positions it as a crucial player in advancing continental trade and economic integration. By joining, Libya’s Public and Private Sector entities will gain access to our extensive range of funded and unfunded products and services, particularly those geared towards deepening Libya-Africa trade and investment relations, investing in trade-enabling infrastructure, as well as transforming the structure of the Libyan economy.”

Libya’s GDP reached US$50.49bn in 2023, ranking it as Africa’s 12th largest economy. However, less than 10% of its trade is with other African nations. This partnership with Afreximbank offers a unique opportunity for Libya to expand its trade ties across the continent and drive economic growth.