Ecobank, AfCFTA strike deal to unlock $3bn for African businesses, SMEs

Ecobank Group and the African Continental Free Trade Area Secretariat have signed a landmark Memorandum of Understanding (MoU) aimed at accelerating intra-African trade and narrowing the continent’s growing trade finance gap, with particular focus on small and medium-sized enterprises (SMEs), women-led businesses, and young entrepreneurs.

The agreement establishes a strategic partnership framework to support the implementation of the African Continental Free Trade Area (AfCFTA), which seeks to create a single African market of more than 1.3 billion people with a combined gross domestic product estimated at approximately $3.4 trillion.

The partnership was announced in a press release issued on Thursday and is expected to strengthen access to trade finance, market information, and cross-border business opportunities for African enterprises that have traditionally struggled to access formal financial support.

The MoU builds on Ecobank’s recent announcement at the Africa-Forward Summit in Nairobi, where the pan-African lender unveiled a $3 billion trade finance commitment to be deployed over the next three years in collaboration with Development Finance Institutions (DFIs).

Under the new arrangement, the AfCFTA Secretariat will help direct the financing toward businesses across the continent, ranging from major corporations to informal cross-border traders, many of whom remain underserved by traditional banking systems.

According to Wamkele Mene, improving access to affordable trade finance remains essential to unlocking the full benefits of the AfCFTA agreement.

“Access to trade and affordable finance remains critical to unlocking the full potential of the AfCFTA,” he stated.

“Through this partnership with Ecobank, we are strengthening the support available to African businesses, particularly SMEs, women-led enterprises, and young entrepreneurs, to enable greater participation in intra-African trade and value chains across the continent.”

For Ecobank, the agreement reinforces its long-standing mission of promoting African economic integration and cross-border financial connectivity.

Michael Larbie, Group Executive for Corporate and Investment Banking at Ecobank, described the partnership as a significant milestone in the bank’s four-decade commitment to Africa’s economic transformation.

“For 40 years, Ecobank has been built on a singular vision: to advance the economic development and financial integration of Africa,” he said.

“With our unmatched presence across 34 African markets and our digital capabilities, we are uniquely positioned to serve as a catalyst for the AfCFTA. This MoU formalises our commitment to connecting African businesses to the markets, finance, and knowledge they need to thrive.”

Under the agreement, the two institutions will collaborate across six key priority areas designed to deepen trade participation and reduce barriers facing African businesses.

The partnership will focus on supporting SMEs with tools, financing opportunities, and trade networks that enable them to benefit from AfCFTA opportunities across the continent.

The initiative will also promote Ecobank’s Ellevate Programme, which specifically targets women-led businesses operating within both formal and informal sectors.

Another major component involves strengthening Ecobank’s Single Market Trade Hub, a digital trade platform intended to reduce information gaps and improve access to market intelligence for businesses operating across African borders.

Additionally, both institutions plan to leverage the AfCFTA Trading Companies database and Ecobank’s continental network to facilitate business referrals and connect buyers with sellers more efficiently.

The MoU also includes joint policy advocacy efforts aimed at addressing non-tariff trade barriers, reducing cross-border payment friction, and improving regulatory harmonisation among African countries.

The two organisations further intend to collaborate on thought leadership initiatives, including business forums, conferences, and policy discussions focused on AfCFTA implementation and continental trade integration.

The agreement comes at a critical stage for the AfCFTA initiative. Although the free trade agreement officially became operational in 2021, implementation has faced challenges including payment bottlenecks, inconsistent regulations, inadequate infrastructure, and limited access to affordable trade finance for smaller businesses.

Analysts believe the partnership between Ecobank and the AfCFTA Secretariat could significantly improve intra-African trade participation by providing businesses with stronger financial support and broader market access opportunities.

The collaboration is also expected to contribute to the broader objectives of the African Union Agenda 2063 development blueprint, commonly referred to as “The Africa We Want.”

Although no detailed implementation timeline has yet been announced, both parties indicated that rollout of programmes and initiatives under the agreement would begin immediately.