FirstRand Bank Joins Proparco's Trade Finance Program to Enhance Intra-African Trade
published on 25 November 2024
Proparco's Trade Finance Guarantee Program is broadening its scope across Africa. FirstRand Bank (FRB) becomes the first Southern African bank to join Proparco’s Trade Finance program as a confirming bank. This partnership will enable FRB’s corporate and investment (CIB) business Rand Merchant Bank (RMB) to further strengthen its confirmation capabilities through Proparco’s network of issuing banks, ultimately increasing its import capacity and promoting intra-African trade.
This collaboration builds on the established relationship between Proparco and FRB, which was further reinforced by Proparco’s USD 100 million climate-finance credit facility granted in November 2022. In addition to supporting intra-African trade, FirstRand Bank is highly engaged in the Asia-Africa trade corridor, leveraging RMB’s presence in India which is particularly focused on facilitating trade between the two regions. Through accessing increased financing capacity RMB can increase its participation in intra-African trade flows, with the objective of reducing the trade finance gap in Africa by leveraging Proparco's extensive network of existing issuing banks.
For Gonzague Monreal, Head of Proparco’s Financial Institutions: "Proparco is pleased to continue building on its partnership with FirstRand, by supporting the bank in its trade finance activities in Africa. This project follows the AFD Group’s ambitious inequality reduction strategy, and further illustrates Proparco’s strong commitment to reducing the trade finance gap in Africa.”
For Louis Du Plessis, Head of Trade and Working Capital at RMB “This strategic partnership with Proparco will enhance our trade finance capabilities and our commitment to provide meaningful funding support to our clients across Africa. To navigate Africa’s diverse opportunities, these types of partnerships will enable RMB to navigate complexity with well thought out solutions for more seamless trade across the continent, driving growth and unlocking opportunities.”
