AfDB grants €308 million to the financing of SMEs in Africa

Mar 11, 2013

The African Development Bank (AfDB) has approved on February 20th two loans of 200 million dollars (€54 million) each, which will support the trade finance activities of Ecobank Group and Standard Chartered Bank in Africa.

The African Development Bank (AfDB) has approved on February 20th two loans of 200 million dollars (€54 million) each, which will support the trade finance activities of Ecobank Group and Standard Chartered Bank in Africa.

This support will supply Ecobank's subsidiaries with mid-term liquidities that will help them provide adequate funding to small and medium-sized enterprises (SMEs) as well as local businesses.

"The majority of African banks have small capital bases which constrain their ability to obtain adequate trade limits from international banks and to undertake sizeable transactions that have significant development impact," said the AfDB in a statement.

It added that these funds will foster financial-sector development and regional integration, and contribute to government revenue generation.

The AfDB has also granted on March 5th an eight million dollar credit line to the Development Bank of Rwanda to support the private sector and SME financing in the country.

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