According to bank provided information, the project aims to increase access to trade finance for SMEs and other local enterprises in Benin by strengthening NSIA Banque Bénin’s capacity to provide foreign-currency financing for international trade transactions. More specifically, the facility seeks to address shortages of foreign-currency liquidity and trade finance, reduce financing constraints faced by local firms, support imports of productive equipment for manufacturing and agro-industry, strengthen domestic production and exports, and improve access to finance for women- and youth-owned or led enterprises. The project is also expected to contribute to private-sector development by expanding NSIA Banque Bénin’s trade finance offering and supporting enterprise growth.

The Trade Finance Facility for SMEs and Other Enterprises in Benin is a non-sovereign financial-sector operation designed to strengthen the trade finance capacity of NSIA Banque Bénin and expand access to foreign-currency liquidity for local enterprises engaged in international trade. The project consists of a EUR 25 million Trade Finance Line of Credit with a maturity of 3.5 years and a three-year principal grace period. The facility will support SMEs and other local companies active mainly in agribusiness, agro-industry, manufacturing and import-export activities. It will particularly finance imports of equipment for manufacturing and agro-industrial activities, with the aim of increasing domestic production capacity, improving local supply and supporting exports. The facility is expected to support low-carbon activities with limited vulnerability to climate risks. The African Development Bank will provide the full EUR 25 million trade finance line of credit to NSIA Banque Bénin. The document does not identify any direct co-financier for this specific operation. However, NSIA Banque Bénin has separately mobilized other resources as part of its broader funding diversification strategy, including a EUR 20 million portfolio guarantee from Proparco, a EUR 15 million line of credit from Swedfund, a EUR 15 million line of credit from FMO, and a EUR 5 million facility from the Global Climate Partnership Fund for green projects. These are separate financing arrangements and are not presented as co-financing of the AfDB facility. The borrower and implementing financial intermediary is NSIA Banque Bénin S.A. The Bank and NSIA Banque Bénin will sign a trade finance line-of-credit agreement governing the use of the proceeds and ensuring that the resources benefit SMEs and other enterprises involved in international trade.

Norine Sylvie MOUGONGAYE

n.mougongaye@afdb.org 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.afdb.org/en/disclosure-and-access-to-information/request-for-documents. Under the AfDBÕs Disclosure and Access to Information policy, if you feel the Bank has omitted to publish information or your request for information is unreasonably denied, you can file an appeal at https://www.afdb.org/en/disclosure-and-access-to-information/appeals-process. 

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at: https://www.afdb.org/en/independent-review-mechanism/