AfDB approves US$30 million financing for small enterprises in Kenya

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Afdb
Afdb

African Development Bank (AfDB) said Tuesday it has approved a 30-million-U.S. dollar trade & small and medium enterprise (SME) finance facility for Family Bank Limited (FBL) in Kenya to spur regional trade.

The lender said the money is expected to boost intra-Africa trade, promote regional integration and contribute to the reduction of the trade & SME finance gap in the East African nation.

AfDB’s Acting Director for Financial Sector Development Ahmed Rashad Attout said the facility will allow the FBL to play a significant role in providing funding as is necessary for the post-COVID-19 economic recovery of Kenya.

“We are excited about finalizing this facility with FBL as a partner and which will aid FBL in scaling-up its trade & SME finance offerings in Kenya to help meet the ever-increasing trade & SME finance gap,” Attout said in a statement.

The lender will provide up to 10 million dollars to support the FBL’s short-term trade finance activities of SMEs and local corporates, an up to 10 million dollars Transaction Guarantee Facility to support the confirmation of trade finance transactions of the FBL and up to 10 million dollars targeted line of credit to support medium-term financing for SMEs in the health, renewable energy, and agriculture sectors. The facilities will also support women-owned businesses.

The Facility will provide a trade finance line of credit to support the FBL’s short-term trade finance activities, a Transaction Guarantee, which will provide a risk-covered strategic platform to enable confirmation of trade transactions originating from FBL, as well as a targeted line of credit through the Bank’s Africa SME Program.

The AfDB estimates the trade finance gap for the African continent at 82 billion dollars. Enditem

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