As Africa slowly finds its way back to economic recovery, the European Investment Bank and the Oesterreichische Entwicklungs Bank (OeEB) have launched a €100m investment initiative for the continent. Businesses across different sectors will be able to access financing from both banks.
The initiative will primarily focus on increasing the investment funds accessible to African businesses. This is expected to make the continent’s economy more resistant to the harsh impacts of the covid-19 pandemic as well as support businesses in creating more jobs.
The President of the European Investment Bank, Werner Hoyer, said, “Companies across Africa and Europe are faced by unprecedented challenges caused by COVID-19, with disruption to exports and the need to rapidly change business activity.”
The funds will be disbursed in the form of direct loans to companies as well as funding through local financial partners like banks.
This is not the first time that the OoEB is channelling funds to African businesses. In March, it announced the provision of $20 million to finance micro, small and medium-sized enterprises in Sub-Saharan Africa.
Like this €100 million investment, that fund is disbursed through microfinance institutions, non-banking financial institutions and local banks. Micro, Small and Medium-scale businesses in sub-Saharan Africa are also the targets of this fund.
Locally, there are investment initiatives that are also targeted at small businesses. Lagos State launched the N10 billion fund for entrepreneurs and SMEs to cushion the effects of the pandemic and promote business prosperity.
Similarly, Kwara State announced that Kwara-based businesses can apply for interest-free loans of up to N3 million. The businesses must have a clear problem that they are solving and applicants must be between 18 and 35 years old.
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