Burkina Faso - €2.5 million loan to support SMEs' access to leasing
The AfDB has granted this line of credit to a leading leasing institution.The African Development Bank granted on July 30th a line of credit of CFAF1.64 billion (€2.5 million) to a leasing institution in a bid to finance the growth needs of small and medium-sized enterprises (SMEs) in Burkina Faso.
This six-year loan aims to strengthen Fidelis Finance's response capabilities, and is part of the $125 million African Programme for SMEs.
"We are planning to finance at least fifty projects that will create over 150 jobs", director of Finance Fidelis Kouafilann Abdoulaye Sory told Jeune Afrique.
According to the company, the Burkinabe leasing market is estimated at over CFAF30 billion per year.
The AfDB had already granted a €2.5 million line of credit to Fidelis Finance in July 2014 to enable it to boost its finance supply to SMEs.
It also aimed to help these companies develop business plans, as "they often do not have an accountant and are reluctant to use conventional banks because of high transaction costs", said Ginette Nzau-Muteta, an AfDB representative in Burkina Faso.