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Djibouti, April 27, 2021 - As the COVID-19 pandemic weighs on financial systems around the world, the International Finance Corporation (IFC) today signed a partnership with East Africa Bank (EAB) to help the bank based in Djibouti to strengthen its solidity and better control the financial risks which have been accentuated by the crisis.
As part of this technical assistance program, IFC will help EAB improve its risk, trade and credit management framework and capabilities, in line with international best practices. This support aims to put the bank on a path to sustainable growth despite the negative effects of the COVID-19 pandemic on the global economy.
Founded in 2010, EAB now has seven branches in Djibouti. The bank respects the principles of Sharia law and offers Islamic financial services solutions to its clients in Djibouti and East Africa. Djibouti's financial sector is dominated by banks, which represent over 94% of the country's financial assets.
“EAB has experienced sustained growth over the years. This partnership with IFC reaffirms our commitment to growth and development and signals the dawn of a new era of strengthening our risk, trade and credit management capabilities. The objective is to strengthen our financial base and the range of services we offer, in particular to our clients who are at the heart of our action, ”said Ibrahim Jaffar, CEO of EAB.
"IFC's support will enable EAB to equip itself with effective risk and credit management systems to help it attract capital, limit losses and give confidence to regulators, investors and rating agencies", underlined for his part Cheick-Oumar Sylla, director of IFC for Djibouti. “Africa and the world need strong financial institutions to weather the economic shock caused by the COVID-19 pandemic. "
After a sustained growth rate over the past 20 years, Djibouti's economy stalled in 2020, like most other economies in the world, under the effect of the health crisis, according to a recent report by the World Bank . The country's GDP is expected to grow by 5.5% in 2021.
IFC, a member of the World Bank Group, launched its Global Technical Assistance Program on Risk Management Following the 2008 Financial Crisis to Help Address the Challenges of Managing Risk in Markets emerging, especially in Africa. The program aims to strengthen the capacities and risk management frameworks of financial institutions, improve the monitoring of loan portfolios and the management of non-performing loans, while supporting markets that face growing problems related to assets in difficulty.
This program proved to be even more relevant during the COVID-19 pandemic, which severely disrupted economies around the world and strained investor confidence.
Since 2009, IFC has delivered over 150 financial risk management workshops in Eastern Europe, Asia, Sub-Saharan Africa, the Pacific, Latin America and the Caribbean, and the Middle East and South Africa. North to help financial institutions strengthen their operations.
About IFC
The International Finance Corporation (IFC), a member of the World Bank Group, is the leading private sector-focused development institution in emerging markets. It is active in more than 100 countries and devotes its capital, skills and influence to creating markets and opportunities in developing countries. In FY2020, it invested $ 22 billion in private companies and financial institutions in developing countries, mobilizing the capacities of the private sector to end extreme poverty and promote shared prosperity. . For more information, visit www.ifc.org .
Follow IFC news www.facebook.com/IFCwbg www.twitter.com/IFC_org www.youtube.com/IFCvideocasts www.ifc.org/SocialMediaIndex www.instagram.com \ ifc_org About East Africa Bank Established in 2010 and approved by the Central Bank of the Republic of Djibouti, the East Africa Bank aims to systematically offer quality financial products and services in the interest of all its stakeholders, using best market practices dynamics on which it operates. For more information: https://eastafricabank.com/
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