The African Development Bank partners with Access Bank Sierra Leone to extend support to Small and Medium-sized Enterprises (SMEs) and local firms.
The African Development Bank has approved a $4 million trade finance transaction guarantee for Access Bank Sierra Leone Limited (SL) to support small and medium-sized enterprises (SMEs) and local firms in Sierra Leone.
This AAA-rated guarantee will provide 100 percent cover to international confirming banks for the non-payment risk taken on ABSL’s trade finance transactions conducted on behalf of SMEs, local corporates, and women-led businesses in Sierra Leone, a transition state. It will enable Access Bank to support the importation of strategic consumer goods such as rice, cereals, cooking oil, and related soft commodities within key value chains. The facility is expected to support about $36 million of trade over the next three years and promote intra-Africa trade in line with the aspirations of the Africa Continental Free Trade Area (AfCFTA).
“This facility represents a pivotal moment for Sierra Leone's private sector development," said Lamin Drammeh, Head of Trade Finance at the African Development Bank. "By addressing critical financing gaps, we're enabling SMEs to participate more actively in regional and global trade, ultimately contributing to job creation and improved livelihoods," he emphasized.
“Access Bank is on a mission to build a strong global franchise focused on serving as a gateway for payments, investments, and trade within Africa and between Africa and the rest of the world. Positioning the African continent as a viable market for global trade. This AAA rated guarantee will help us to grow our trade finance book and support multinational corporations as well as small and medium-sized enterprises (SMEs) in Sierra Leone. Particularly it will support our issuances of trade finance transactions in critical sectors such as agribusiness (importation of strategic soft commodities) and trading of intermediate goods.” said Ganiyu Sanni, Country Managing Director at Access Bank (SL) Limited.
The Transaction Guarantee is one of the trade finance instruments offered by the African Development Bank to support local banks in Africa. It was launched in 2021 and covers an array of trade finance instruments, including confirmed letters of credit, trade loans, irrevocable reimbursement undertakings, avalized bills, and promissory notes. Through this instrument, the Bank leverages its “AAA” rating to mitigate country risk and local bank counterparty for confirming banks.
The facility is tailored to the needs of letter of credit (L/C) issuing banks that are often compelled to provide cash margin for their L/Cs, have used up their L/C confirmation lines with correspondent banks, or find it difficult to obtain those lines in the first place. Banks registered and operating in Africa can access it after passing the Bank’s due diligence process. The Bank also offers 3.5-year trade finance lines of credit to local banks to support importers and exporters.
About Access Bank Sierra Leone
Access Bank (Sierra Leone) Ltd, a subsidiary of Access Bank Plc, is a full-service commercial Bank operating through a network of 8 branches in the major commercial districts in the country. The Bank opened to the public November 2007 and has grown to rank among the top banks in the Sierra Leone by total assets.
Access Bank PLC, a wholly owned subsidiary of Access Holdings Plc, is a leading full-service commercial bank operating through a network of more than 700 branches and service outlets spanning 3 continents, 24 countries and over 65 million customers. The Bank employs over 28,000 thousand people in its operations in Africa, the United Kingdom, and Europe, with representative offices in China, Lebanon, India and the UAE.
Access Bank’s parent company, Access Holdings Plc, has been listed on the Nigerian Stock Exchange since 1998. The Bank is a diversified financial institution which combines a strong retail customer franchise and digital platform with deep corporate banking expertise, proven risk management and capital management capabilities. The Bank services its various markets through five business segments: Personal, Business, Operations and IT, Commercial and Corporate & Investment Banking. The Bank has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last 22 years, becoming one of the continent’s largest retail banks.
As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations. The Bank strives to deliver sustainable economic growth that is profitable, environmentally responsible, and socially relevant, helping customers to access more and achieve their dreams.