Shs341b for East African businesses

Business people like this woman will benefit. File photo 

By MONITOR REPORTER
 

 

Investment by companies across East Africa will benefit from three new lending programmes worth €101.5 million (about Shs341 billion) backed by the European Investment Bank.

Three local banks Chase Bank, the East African Development Bank and National Microfinance Bank PLC (NMB), will use European Investment Bank funding to finance investment by small and medium- sized companies to expand, modernise and start new operations.

The three initiatives were formally agreed in Nairobi last week by Mr Pim van Ballekom, the European Investment Bank vice president, responsible for lending in sub-Saharan Africa, Mr Paul Njaga, the chief finance and strategy officer of Chase Bank, MsVivienne Yeda, the EADB director general, and Mark Wiessing, CEO for NMB Bank.

Kenyan small and medium sized companies will be able to access low-cost loans in Kenyan shillings, US dollars and Euro under an initiative backed by EUR 6.5 million from the European Investment Bank and this landmark agreement marks the first time that Chase Bank has partnered Europe’s long-term lending institution.

Companies across the East African Community in Kenya, Tanzania, Uganda and Rwanda will benefit from € 25 million (about Shs84 billion) provided to the East African Development Bank.

The newe EIB-backed lending programme is the first joint engagement to improve access to investment loans by small and medium-sized companies since successful restructuring of the EADB.