Burkina Faso: AfDB grants a €2.5 million credit line to support SMEs
AfDB has approved a credit line of €2.5 million to finance institution Fidelis Finance in Burkina Faso.AfDB has approved a credit line of
million to finance institution Fidelis Finance in Burkina Faso.
This credit line will allow the firm to boost its finance offering to small and medium-sized enterprises (SMEs) across the African nation through leasing, as well as short and medium term loans.
"The line of credit will help SMEs to develop business plans because they do not often have regular accounts and are reluctant to use traditional banks because of high transaction costs," said AfDB's
resident representative Ginette Nzau-Muteta, quoted by newspaper Sidwaya.
The funding "will increase the finance products available to finance
growth. These finance products include leasing, credit-equipment, etc.,"
said Fidelis Finance's CEO, Abdoulaye Sory.
The AfDB scheme also includes staff training on SME lending, the strengthening of
capacity to manage risk
and the implementation of a new information system.