Brussels, 09/11/2012 (Agence Europe) - On 7 October, the European Investment Bank (EIB) and United Bank for Africa (UBA), a leading pan-African financial institution, concluded an agreement aimed at strengthening small and medium-sized enterprises (SMEs) in Africa through a €50 million regional funding initiative.
The EIB loan will be used by UBA for on-lending to eligible customers in its countries of operation. The initiative will assist UBA to strengthen its African regional network and represents the first time that the EIB has provided such a facility to a Nigerian bank for on-lending to SMEs across borders.
The €50 million envelope will essentially target private sector enterprises, including small businesses in post-conflict countries such as Sierra Leone and Côte d'Ivoire, and will also be used for expanding and strengthening the under-developed financial sectors of Benin, Chad, Gabon and the Democratic Republic of Congo.
The EIB stresses in a press release that it is “committed to supporting the private sector in Africa” and seeks to foster “economic integration on the continent” and support “the development of African businesses”. (OL/transl.jl)