The Board of Directors of the African Development Bank (AfDB), a multilateral institution that provides loans and grants to governments and private companies in Africa, recently approved a 3.5-year line of credit in the amount of USD 20 million to UT Bank Ghana Limited (UT Bank), a commercial bank based in Ghana with 26 branches in Ghana and an unavailable number of subsidiary branches in West Africa and Europe. The line of credit is intended to enable UT Bank to “support the trade finance activities” of small and medium-sized enterprises (SMEs) in Ghana and is expected to facilitate approximately USD 140 million worth of trade in manufacturing equipment and raw, intermediate and finished materials and goods.
As of 2011, UT Bank employs approximately 600 staff. For the same year, UT Bank reported total assets of GHS 712 million (USD 378 million).
AfDB was established in 1964, and its shareholders consist of 77 member countries, including 53 African countries to which it commits an approximate total of USD 3 billion annually.
By Makai McClintock, Research Associate
About African Development Bank (AfDB)
Established in 1964, the African Development Bank (AfDB) provides loans and grants to governments and private companies in Africa. Owned and funded by member governments, the bank has a mandate to reduce poverty and promote sustainable development. AfDB shareholders consist of 77 member countries, including 53 African countries to which it commits an approximate total of USD 3 billion annually. Donald Kaberuka serves as president of AfDB as of 2012.
Sources and Additional Resources
African Development Bank Announcement, “AfDB Approves a USD 20 Million Trade Finance Line of Credit for UT Bank Ghana to Support SMEs and Local Companies,” http://www.afdb.org/en/news-and-events/article/afdb-approves-a-usd-20-million-trade-finance-line-of-credit-for-ut-bank-ghana-to-support-smes-and-local-corporates-11813/
MicroCapital: “MICROCAPITAL BRIEF: African Development Bank (AfDB) Microfinance Capacity Building Fund (MCBF) Offering up to $500k per Institution,” November 26, 2012, https://www.microcapital.org/microcapital-brief-african-development-bank-afdb-microfinance-capacity-building-fund-mcbf-offering-up-to-500k-per-institution/
MicroCapital: “MICROCAPITAL BRIEF: Yunus Social Business Fund Begins Financing Small and Medium-Sized (SMEs) in Haiti,” October 27, 2012, https://www.microcapital.org/microcapital-brief-yunus-social-business-fund-begins-financing-small-and-medium-sized-smes-in-haiti/
MicroCapital: “MICROCAPITAL BRIEF: Dr Muhammad Yunus, Indian Institute of Management – Ahmedabad to Raise $10m for Social Business in India,” February 21, 2012, https://www.microcapital.org/microcapital-brief-dr-muhammad-yunus-indian-institute-of-management-ahmedabad-to-raise-10m-for-social-business-in-india/
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