Ecobank Group Secures E100 Million Credit Facility with European Investment Bank to Support African SMEs

Strategic Insights -

The European Investment Bank (EIB) and Ecobank Group have signed a long-term credit facility worth E100 million to support business investment across Africa, with a focus on sectors hardest hit by the COVID-19 pandemic. The facility will be used to provide financing to Small and Medium-sized Enterprises (SMEs) in Africa, with a particular emphasis on supporting female-owned and female-focused businesses. The agreement marks a significant milestone in the joint efforts of Ecobank Group and the EIB to enhance private sector access to finance in Africa.

Key Takeaways:

  • The E100 million credit facility is a 9-year long-term loan from the European Investment Bank to Ecobank Group, with the aim of supporting business investment across Africa.
  • The facility will be split into three regional facilities: West & Central Africa, Eastern Africa, and Southern Africa.
  • Funding will be provided through Ecobank affiliates for investment projects undertaken by private sector companies, with a focus on sectors most impacted by the COVID-19 pandemic.
  • The loan will also be accompanied by technical assistance under the AWRI program of the EIB, which includes gender finance-focused training and capacity building for lending to women entrepreneurs.
  • Ecobank Group and EIB recognize the importance of ensuring access to finance by female-owned and female-focused businesses, particularly during times of economic and investment uncertainty related to COVID-19.
  • The facility agreement follows on from the EIB's signing of a E12.5 million loan to Ecobank Malawi in December 2020 to improve access to finance for SMEs in Malawi's agricultural sector.
  • Ecobank Group and EIB are also working on a E15 million "SME Access to Finance" Risk Sharing Facility Agreement granted by the EU's European Fund for Sustainable Development (EFSD) to support loans to SMEs worth E95 million.

Statistics:

  • E100 million: The value of the long-term credit facility from the European Investment Bank to Ecobank Group.
  • 9 years: The duration of the credit facility.
  • E12.5 million: The value of the loan signed by the EIB with Ecobank Malawi in December 2020.
  • E15 million: The value of the "SME Access to Finance" Risk Sharing Facility Agreement granted by the EU's European Fund for Sustainable Development (EFSD) to support loans to SMEs worth E95 million.
  • E95 million: The total value of loans supported by the "SME Access to Finance" Risk Sharing Facility Agreement.

Sources:

  • European Investment Bank (www.EIB.org)
  • Ecobank Group (www.ecobank.com)
  • APO Group (Distributed by APO Group on behalf of European Investment Bank (EIB))
  • European Commission (Director-General for International Cooperation and Development, Koen Doens)
  • Agence Française de Développement (Rémy Rioux)