Ecobank empowers African SMEs by unlocking opportunities through AfCFTA
Thursday, October 17, 2024
Panelists during the recent AfCFTA Business Forum, ‘Biashara Afrika,’ held from October 9-11 in Kigali. Courtesy

Ecobank is enhancing its support for small and medium-sized enterprises (SMEs) to leverage the African Continental Free Trade Area (AfCFTA) by tackling key challenges and seizing new opportunities.

During the recent AfCFTA Business Forum, ‘Biashara Afrika,’ held from October 9-11, leaders, businesses, and policymakers convened to discuss strategies for boosting trade across the continent. For Ecobank, the forum provided an opportunity to highlight its innovative approach to promoting trade and economic integration.

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As the Panafrican Bank with the largest footprint across Africa, with a presence in 33 countries, Ecobank is utilizing its extensive footprint to address one of the major trade barriers—market access.

"Ecobank introduced the ‘Single Market Trade Hub,’ a digital platform designed to close the information gap that prevents African SMEs from accessing market opportunities," said Diagne Souleymane, Group Head of Trade Finance at Ecobank. "Open to both Ecobank clients and non-clients, the platform enables businesses to register and showcase their products and services at no cost. By connecting SMEs with potential buyers and suppliers across the continent, it facilitates easier trade and improves market visibility."

Panelists pose for a photo after discussing strategies for boosting trade across the continent

So far, over 6,000 SMEs have joined the platform, resulting in successful business connections, such as coffee, honey, and avocado trade between Rwanda and Ghana, corn seed trade between Togo and Côte d’Ivoire and fish exports from Senegal to Burkina Faso.

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"Access to finance remains a major bottleneck for SMEs, often due to challenges around collateral and formalization. We are proactively addressing these barriers by partnering with institutions like the Global Business School Network and Visa, and through our Ecobank Academy, to help SMEs build capacity and meet financial requirements," Souleymane added.

Ecobank has also introduced targeted financial products to support SMEs. One such initiative is the ‘Ellevate&039; programme, which focuses on financing women-led businesses by offering credit facilities at discounted interest rates with reduced collateral requirements, addressing the unique challenges faced by female entrepreneurs.

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The bank is also working closely with government agencies and public authorities to establish standardized criteria for financing, enabling low-risk, collateral-free loans for qualifying SMEs.

Additionally, Ecobank’s investment in digital banking technologies has greatly expanded financial inclusion and access to trade finance across Africa. With platforms like Ecobank Omni Lite, Omni Plus for businesses, and Rapid Collect, the bank enables traders and entrepreneurs to conduct business seamlessly, even across borders. Rapid Collect, in particular, offers a 'One Bank' experience, allowing businesses to manage domestic or cross-border collections through a single account, aligned with each country’s regulatory framework. This eliminates the need for multiple accounts, with services accessible through any Ecobank branch."

Our Rapidtransfer service, available through the Ecobank Mobile App, 883#, Ecobank Online, Xpress points, and branches, provides a convenient solution for instant money transfers across Ecobank’s extensive African network, facilitating the movement of funds essential for trade and investment flows. This service is available to both Ecobank and non-Ecobank customers.

Souleymane Diagne speaks during the Forum. Diagne shared key insights on overcoming trade finance challenges
The three day conference brought together leaders, businesses, and policymakers to discuss strategies for boosting trade across the continent