Ghana International Bank Plc (GHIB) has signed a Confirming Bank Agreement with the African Development Bank Group (AfDB) under its Transaction Guarantee Instrument, in a move aimed at strengthening trade finance capacity and supporting cross-border commerce across Africa.
The agreement, announced in Abidjan, positions GHIB among a select group of financial institutions approved under AfDB’s eligibility criteria, enabling it to expand its role in facilitating trade flows, particularly in underserved and higher-risk markets across the continent.
The facility is expected to significantly enhance GHIB’s ability to support importers, exporters and local banks by confirming trade finance transactions, thereby reducing risk and improving access to international markets.
It also aligns with broader efforts to bridge Africa’s persistent trade finance gap, widely seen as a major constraint to economic growth and regional integration.
Chief Executive Officer of GHIB, Ian Greenstreet, described the agreement as a milestone in the bank’s strategic expansion across Africa’s trade corridors.
“This agreement with the African Development Bank represents a significant milestone for Ghana International Bank and our clients,” he said. “It strengthens our ability to support businesses engaged in international trade and reinforces our commitment to facilitating economic growth and investment across Africa.”
He noted that GHIB’s unique positioning as a UK-regulated bank with deep African roots allows it to act as a conduit between African markets and global capital.
“We are delighted to partner with the African Development Bank in support of increased trade, investment and economic opportunity across the continent,” Greenstreet added.
The AfDB also sees the partnership as a critical intervention to support regional trade, especially in low-income and transition states where access to trade finance remains constrained.
Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure and Industrialisation, said the collaboration would help extend trade finance support to countries including Sierra Leone, The Gambia, Guinea and Liberia.
“AfDB is delighted to partner with GHIB to support trade across Africa, especially in low-income countries and transition states,” he said.
“GHIB’s strength in providing confirming bank support to local banks in these and other African countries is perfectly aligned with AfDB’s mandate of promoting regional integration.”
The agreement comes at a time when the implementation of the African Continental Free Trade Area (AfCFTA) is gaining momentum, increasing the need for stronger financial systems to underpin intra-African trade.
The AfDB has identified enhancement of confirming bank capacity as a key strategy to reduce the trade finance gap and enable African financial institutions to play a greater role in supporting cross-border transactions.
“With the increasing implementation of AfCFTA, AfDB has the strategic objective of reducing Africa’s trade finance gap,” Quaynor said. “We look forward to building a broader and stronger partnership with GHIB.”
Industry observers note that access to trade finance remains one of the biggest bottlenecks for African businesses, particularly small and medium-sized enterprises (SMEs), which often struggle to secure guarantees and credit lines needed to participate in international trade.
By leveraging AfDB’s guarantee framework, GHIB will be able to take on more risk and extend its confirming services to a wider range of financial institutions and markets. This, in turn, is expected to deepen trade flows, strengthen supply chains and improve resilience across Africa’s import-export ecosystem.
GHIB has long played a pivotal role in facilitating trade and investment between Africa, the United Kingdom and global markets.
Headquartered in London, the bank serves a diverse clientele including financial institutions, corporates, SMEs, and members of the African diaspora.
Trade finance remains at the core of GHIB’s operations, complemented by services in correspondent banking, corporate banking and treasury. The bank has in recent years intensified efforts to expand its capabilities and forge strategic partnerships to enhance its offerings across the Africa–international corridor.
The agreement is expected to drive increased transaction volumes, improve access to financing for businesses and strengthen GHIB’s long-term ambition of becoming a leading banking partner for Africa-focused trade and investment.
As African economies continue to integrate under AfCFTA, initiatives such as this are expected to play a crucial role in unlocking new opportunities, fostering private sector growth and accelerating sustainable economic development across the continent.
Source: businesspostonline
