The European Investment Bank (EIB) and the United Bank for Africa (UBA) have signed a 50 million Euro funding initiative to strengthen small and medium businesses in Africa.
The EIB says “the initiative will target at private sector enterprises, including small businesses in post-conflict countries such as Sierra Leone and Ivory Coast and will also be used for expanding and strengthening the under-developed financial sectors of Benin, Chad, Gabon and the Democratic Republic of Congo.”
Pim van Ballekom, the EIB’s Vice President, responsible for lending operations in sub-Saharan Africa says “The European Investment Bank is committed to supporting the private sector in Africa.
This significant partnership between UBA and the European Investment Bank will benefit small businesses seeking to expand and contribute to strengthening of the financial sector in 16 African countries. The ability to access harmonized financial services across borders will also encourage greater regional economic integration on the continent.”
The scheme is expected to assist UBA to strengthen its African regional network and represents the first time that the EIB has provided such facility to a Nigerian bank for on-lending to small and medium sized businesses across borders.
In his remarks UBA’s Group Managing Director and CEO,Phillips Oduoza, said “Our expansion across Africa in the last five years has been driven by our commitment to fostering economic integration on the continent and supporting the development of African businesses. The partnership with EIB provides us with an additional source of medium to long term funding and will enhance financial intermediation in key sectors such as agriculture, manufacturing, infrastructure, transport, energy, health, education and, other sectors where long term funding is required.”
The signing of the pact was done on Wednesday in Lagos by the two financial institutions.
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