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Abidjan, Ivory Coast, July 18, 2019 – The Board of Directors of the African Development Bank Group on Wednesday approved $ 8 million in financing for the Kenyan Credit Bank for Lending exclusively to small and medium-sized enterprises (SMEs) in the construction, agriculture and agriculture sectors. renewable energy and manufacturing.
The loan, which has a five-year term and a two-year grace period, is the first proposal presented as part of the Bank's new initiative to support SMEs in Africa. The Credit Bank is a privately held company dedicated to growing SMEs through funding and capacity building initiatives.
"It is financially sound and, as a well-capitalized Level 3 financial institution, has a strong reputation for SMEs, providing working capital and trade finance facilities. As such, it is well positioned to successfully deliver innovative long-term financial solutions to SMEs across multiple value chains, including strategic financial solutions in Kenya, "said Stefan Nalletanby, Director of the Bank Group for Africa. the development of the financial sector.
Nalletanby said the credit bank has supportive infrastructure and a strong presence in Kenya's key economic regions and is expected to support several small businesses in rural areas, thus producing a substantial impact on the economy. development.
The overarching goal of the project is to provide access to finance for SMEs, the "missing third" in Kenya, in order to reduce their funding gap. The facility's product will support operations aimed at improving their productive capacity, thereby enhancing entrepreneurship, job creation, income generation and sustainable growth, which will have a multiplier effect on growth. country's economy, "said the Bank.
This mechanism also aligns well with four of the Bank's five key strategic priorities: "Improving the quality of life of African people", "Feeding Africa", "Light and Power of Africa" and "Industrializing Africa".". It is also aligned with the financial sector development policy and strategy and will contribute to Youth Employment Program and the Positive Action Program for Women in Africa.
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