Ecobank Proparco Trade Finance

Ecobank Expands Proparco Trade Finance Support in Chad

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Ecobank has expanded its collaboration with Proparco by securing a new €10 million Trade Finance Guarantee facility for Ecobank Tchad.

The announcement was made on November 3, 2025, during Day 1 of the Africa Financial Summit (AFIS) 2025 in Casablanca, Morocco.

The new allocation lifts the Ecobank-Proparco Trade Finance programme to €125 million in total guarantees across seven African markets since 2018.

The programme began in West Africa, supporting countries such as Burkina Faso, Côte d’Ivoire, Guinea, and Mali, before extending to Malawi through a $10 million package in 2023.

With the latest approval for Chad, the facility continues its role in helping importers in fragile economies access essential goods and working capital.

The Trade Finance Guarantee facility for Ecobank Tchad will support small and mid-sized businesses that depend on overseas supply channels for raw materials and finished products.

According to Ecobank, the guarantee will help importers access inputs such as fertilizers, pharmaceuticals, machinery, and agro-industrial equipment, easing pressure on firms operating in sectors like cotton ginning and oilseed processing.

The funding also targets food supply continuity in a country where more than 80% of food and raw materials are imported.

By covering counterparty risks for international confirming banks, the programme enables Ecobank subsidiaries to issue letters of credit and other trade finance instruments without collateral constraints.

This offers working capital flexibility to local businesses that often struggle to access trade lines due to limited credit history, high risk perception, and liquidity barriers in global markets.

Chad faces persistent supply-chain challenges linked to its landlocked geography, political instability, and wider Sahel security and climate shocks.

With a GDP per capita of around $700, the country remains among the world’s least developed, and disruptions to international supply routes frequently affect availability and pricing of essential goods.

The €10 million facility is expected to help stabilize import flows and support industries dependent on imported raw materials.

The announcement took place at AFIS 2025, themed “Unlocking Africa’s Financial Power: Time to Channel Domestic Capital for the Future”. The summit brought together more than 1,200 leaders from ministries, central banks, development finance institutions, and fintech firms.

Hosted by Jeune Afrique Media Group in partnership with the International Finance Corporation (IFC) and the Kingdom of Morocco, the forum discussed how African economies can mobilize capital amid tightening global liquidity and an annual infrastructure financing gap exceeding $100 billion.

The latest facility continues Ecobank’s work with Proparco to widen trade funding access for businesses across the continent.

It also reinforces the bank’s focus on supply-chain resilience, particularly in markets highly dependent on imports for food, manufacturing inputs, and essential goods.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.

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