The European Investment Bank (EIB) and the Trade Development Bank (TDB), which operates in eastern and southern Africa, have announced a 12-year investment of 81.5-million euros to support investment in fragile contexts across eastern and southern Africa.
The investment has two primary objectives: to provide targeted financing to support people and communities impacted by Covid-19, climate change, and social exclusion; and to provide business financing to back companies that support women, youth, and micro- small and medium enterprises (MSMEs), among others.
The EIB and TDB believe that access to finance by entrepreneurs and businesses with an impact on people in fragile situations across Africa will be bolstered by the initiative.
The investment is expected to unlock a further 163 million euros, and will serve as the EIB’s first-ever facility to be specifically dedicated to the support of private-sector interests in fragile contexts.
“The facility will focus on overcoming barriers hindering access to finance by socially excluded people and communities,” a statement said.
The initiative was formally launched in Nairobi yesterday by Werner Hoyer, president of the EIB, and Admassu Tadesse, TDB president emeritus and group managing director.
“Ensuring that entrepreneurs and communities across Africa can access finance is essential to tackle social exclusion and the impact of a changing climate,” Hoyer said.