Ecobank Set To Increase Trade Flows

Between June 1999 and June 2000 volume of trade that passed through Ecobank transnational stood at US$45 million, reports reaching Business and Financial Times have indicated.

In his presentation to Exporters at a seminar organised by Ecobank and Ghana Export Promotion Council (GEPC) in Kumasi, Mr. Fitzgerald Odonkor said this shows how slow trade in the subregion is, comparing statistics of West African countries to South African Development Community (SADC). Mr Odonkor who is in charge of International Trade Finance at Ecobank said the sub-region currently has market for about 250 million people with a combined GDP of US$85 billion, compared to SADC which has 200 million people with a total GDP of US$183.9 billion.

He disclosed that in 1997, West Africa accounted for less than one percent of world trade.

Looking at the background, according to Mr. Odonkor, it is necessary a regional banking institution like Ecobank be set up.

To enhance the growth of Trade within the West Africa States, the bank has designed various products which can improve trade.

Among the products, is Ecotrade. Ecotrade is a regional bill discounting product which enables exporters to receive proceeds under deferred letter of credit or bill of exchange, regional currency payment which is also designed to facilitate payments in any of the eleven West Africa countries forming the Ecnobank Transnational.

Other products include Eco-Collection, Regional documentary credits and regional bills for collection.