Rand Merchant Bank (RMB), a division of FirstRand Bank Limited, has achieved a significant milestone in Africa, by partnering with the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank, to extend short-term funding support on a trade-backed facility for the Republic of Côte d’Ivoire.
Through collaboration with MIGA and the Minister of Economy and Finance for Côte d’Ivoire, RMB facilitated a short-term loan to support crucial trade related initiatives.
Ben Bechet from RMB’s Trade and Working Capital, Structured Solutions team, said: “While RMB has a proud history of supporting sovereigns on the continent with their funding and capital markets requirements, this is a first of its kind facility for an African sovereign. This transaction will pave the way for further MIGA guaranteed short-term facilities across the continent to assist with developmental initiatives, critical projects and the importation of crucial goods such as food, fertilizer and medicines alongside other resources.”
MIGA was created in 1988 as a member of the World Bank to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $76 billion in guarantees across 123 developing countries, supporting more than 1,000 projects. Over the past decade, MIGA’s guarantees have generated more than 156,000 jobs in developing countries.
The Eastern and Southern African Trade and Development Bank (TDB), the Multilateral Investment Guarantee Agency (MIGA) and OCP Group also signed a Memorandum of Understanding (MoU) in October 2023, during the World Bank Group and International Monetary Fund Annual Meetings, to enhance collaboration in addressing agriculture and food security challenges in Africa.
The agreement among the three parties, has identified suitable areas for deploying MIGA’s risk mitigation instruments. This will focus on collaboration in trade finance transactions, using MIGA’s guarantees for the importation of strategic commodities such as fertilizers in Africa.
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