The private sector in west Africa is poised for a fresh boost after the ECOWAS Bank for Investment and Development EBID and the African Trade Investment Development Insurance ATIDI inked an agreement to support economic activity in the region.
Signed on the sidelines of the African Development Bank annual meetings in Abidjan, the memorandum of understanding MoU provides a general framework for the two institutions to collaboratively de-risk private sector transactions in West Africa.
This new partnership is set to enhance efforts to attract private investment to the region, with a focus on expanding industrial capabilities, accelerating infrastructure development, and building regional value chains.
"In partnering with ATIDI, the Bank takes yet another step towards enhancing its risk management strategy, which will enable it to secure competitive resources to finance transformative development projects across West Africa," said Dr George Agyekum Donkor, President and Chairman of the board of directors of EBID, during the signing ceremony.
Mitigating risksDr Donkor highlighted the various macroeconomic pressures facing countries in the region, outlining challenges such as debt distress, high funding costs, high non-performing loans in the private sector, and the threat of credit downgrades by credit ratings agencies.