Comprehensive cross border solutions

Africa Correspondent Banking and Financial Institution Services

With Ecobank being present in 36 countries in Africa – more than any other bank in the world – the group’s affiliates can confirm and negotiate LCs to beneficiaries in those countries, as well as manage related payments and trade confirmations from banks outside Africa.

Export Credit Agencies

Benefit from credit enhancement from Export Credit Agencies and Multilaterals, including US Exim, IFC, etc. More flexible terms between the buyer and seller can be obtained, with competitive longer tenor financing.

EBI SA (Ecobank Paris) LC Confirmation Services

Ecobank’s wholesale bank in Paris, France, speedily confirms LCs to beneficiaries, enabling a competitive end-to-end solution from the group. EBI SA’s relationship with leading banks worldwide enables beneficiaries to be credited or advised of funds/trade documents.

Regional collections (EAC)

The increased growth of trade between African countries is creating significant regional business opportunities. However, these opportunities also spawn operational challenges related to the settlement of trade transactions. In 2014, Ecobank launched a regional collection solution to facilitate trade within the East Africa Community (EAC). Initially the bank had operations in Burundi, Kenya, Rwanda, South Sudan and Tanzania. The Democratic Republic of Congo (DRC) was added later.

 

By using a single collection account in the EAC country of preference, Ecobank’s customers are able to receive payments from all their buyers across the region. In addition to improving commercial relationships with buyers, other key benefits of Ecobank’s regional collection solution include:

• Improved collection processing efficiency
• Reduced delays/errors
• Lower overall transaction costs
• More accurate and timely collections information
• Full control of accounts receivable
• Greater ease of account management and monitoring

Ecobank works closely with clients in reviewing key factors regarding Transaction Processing, Settlement, Financing, Risk Mitigation and Credit Enhancement. Our customers benefit from well mitigated credit facilities and relevant services:

• Import Finance facilities
• Export finance facilities (pre and post shipment)
• Bill discounting
• Trade loans

Broad sector coverage and risk management for large transactions

Export Credit Agency & Multilateral Financing

Ecobank maintains strong relationships with a wide range of international, regional multilateral institutions and export credit agencies that provide Ecobank with an enhanced trade financing capacity and the ability to reach a wide range of sectors. The advantages of this financing are the relatively longer repayment periods including a grace period.

Structured Trade Commodity Finance (STCF)

Ecobank brings together considerable experience and expertise in agricultural commodities, energy and metals finance. We have a dedicated presence in all the major import and export markets in sub-Saharan Africa. This financing is highly structured and is based on ensuring automatic repayment of the advances from cash flows generated from the commodities being traded. Using structuring techniques Ecobank can control its level of risk through, for example, establishing and maintaining control of the commodity finance.

“Clubbed” or syndicated trade loans

For customers with unusually large trade transactions, Ecobank is well placed to offer trade structures for large ticket transactions allowing for sharing of credit risk between financial institutions and access to international financing. Our trade finance clients benefit from ready access to capital markets and a powerful distribution platform for primary and secondary markets.