China grants African SMEs €730 million in loans
China is to establish a $1 billion dollar (€730 million) special fund for the development of small and medium enterprises (SMEs), financed by China Development Bank (CDB).The additional funding will increase the Special Loan for the Development of African SMEs to $2 billion, Deputy Head of the international department at CDB Liu Hao told Xinhua news agency.
SMEs will receive loans of up to $1 million with a maximum duration of five years.
The objective is to boost the growth of SMEs in Africa, broaden their financing sources, boost the local economy and contribute to job creation, Le Soleil newspaper reports.
CDB will establish rates depending on the importance of the project, the borrower's level of credibility and the results of the project's risk assessment.
The targeted sectors will include agriculture, export led industries, construction, health and medicine, irrigation, education, environment protection and energy savings.