AfDB, Citi and IFC Enter New Agreement to Support Trade Finance in Africa

London - October 4, 2012 – The African Development Bank (AfDB) Group, Citi and International Finance Corporation (IFC), a member of the World Bank Group, have agreed to provide a $175 million thre-year revolving credit facility covering short-term trades for exporters and importers in Africa. This agreement builds on the success of a previous similar program launched in 2010 to help boost economic growth in the region.

The financing is part of the The Global Trade Liquidity Program (GTLP), a unique, coordinated global initiative launched in July 2009 by IFC, AfDB and Citi that brings together governments, development finance institutions (DFIs), and private sector banks to support trade in developing markets and address the shortage of trade finance resulting from the global financial crisis.

As Citi Economists expect Africa to more than double its share of world trade from 3% in 2010 to 7% in 2050, the program addresses the substantial increase in regional trade flows. Under the agreement, Citi will originate $175 million in trade finance transactions from 125 financial institutions across 32 countries in Africa. IFC and AfDB will jointly fund $70 million of the portfolio balance by Citi to provide additional liquidity while the local institutions, in turn, will extend trade financing to importers and exporters.

The short-term, revolving nature of the assets financed could mean a US$700 million total impact in trade financing under this program. The program, part of a larger strategy to transform trade finance in Africa, addresses increased demand in the region.

“We are pleased to expand our partnership with AfDB and IFC to enhance trade finance availability in Africa,” said Anurag Chaudhary, Managing Director, Global Head, Trade Distribution at Citi. “In the current challenging environment, we believe that this type of program is instrumental in driving much needed US$ liquidity and credit into the African trade finance market, thereby supporting global trade growth.” “Citi has been present in Africa for over 50 years and this transaction leverages our well-established local franchise as well as our global trade network while demonstrating our commitment to the region,” added Ade Ayeyemi, Head of Citi Transaction Services in Africa. “We conduct business in 23 countries across the continent and continuously invest in the region as we intend to play an integral part in the rise of Africa.”

“The African Development Bank (AfDB) is delighted to combine resources with Citi and IFC in this very important initiative,” said Timothy Turner, Director of Private Sector & Microfinance Department. “At a time when liquidity is constrained globally, it is imperative for us at AfDB to facilitate access to trade financing for African corporates and SMEs.”

“We recognize the strong link between trade and economic growth, which informs our commitment to supporting trade finance in Africa,” noted Yaw Kuffour, Head of Trade Finance, AfDB. “The Bank’s contribution of US$50 million to this Program is testimony to this commitment. And plans are underway to further strengthen it,” he concluded.

Georgina Baker, Director Trade and Supply Chain, IFC said: “While the impact of the crisis is felt throughout the global economy, the poorest are often those who are most affected by reduced growth, incomes and increased prices of critical goods. Trade finance is a key part of IFC’s integrated response to the current global financial situation and this facility with Citi will help protect trade flows and economic growth across Africa.”

1 Citi GPS (Global Perspectives & Solutions) “Trade Transformed: The Emerging New Corridors of Trade Power,” note authored by Citi’s Global Economics team, October 2011


About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit

About the African Development Bank (AfDB)
The African Development Bank is a multilateral development bank whose shareholders comprise 53 African countries (Regional Member Countries – RMCs) and 24 non-African countries (non-Regional Member Countries – non-RMCs). The Bank Group’s primary objective is to contribute to the sustainable economic development and social progress of its regional members, individually and jointly. This objective is met by financing a broad range of development projects and programs through: (i) public sector loans (including policy-based loans), private sector loans, guarantees and equity investments; (ii) providing technical assistance for institutional support projects and programs; and emergency assistance grants. The Bank Group approvals in 2011 amounted to USD 8.476 billion. Through its private sector window, the AfDB provides a range of financial products to the private sector to complement its traditional lending operations to Governments, including financial and technical assistance for viable projects. Private Sector project approvals reached US$2.0 billion in 2011. Infrastructure, especially energy, is the core of Private Sector Operations priorities. For more information, visit

About Citi
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

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About Citi Transaction Services
Citi Transaction Services, a division of Citi’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 95 countries, Citi’s Transaction Services supports over 65,000 clients. As of the second quarter of 2012, it held on average $396 billion in liability balances and over $12 trillion in assets under custody.