The European Investment Bank has
extended a Sh10.45 billion (95 million Euros) loan to two local banks
for financing small and medium sized enterprises (SMEs) in the region.
The
European Investment Bank (EIB) yesterday signed a Sh8.25 billion loan
with Equity Group Holdings earmarked for three subsidiaries and another
one with HFC Ltd at Sh2.2 billion.
Under
the Equity kitty, Sh3.96 billion is for Tanzania, Sh2.2 billion for
Democratic Republic of Congo and Sh2.09 billion for Uganda.
Equity
will also benefit from a Sh220 million technical assistance programme
funded by the EIB to support its strategy of transforming its branches
into SME business centres.
Earlier, the group had signed a Sh5.5 billion loan facility for Kenya.
“Kenya
is increasingly becoming a hub for the region on many levels and we as
the bank must look at this from a very basic point of view: there is a
young and growing population with enormous potential, you need credit to
support that momentum,” said EIB vice president Pim van Ballekom.
Equity
Group chief executive James Mwangi said with the new loan the lender
will be in a position to support up to 1,000 regional companies with an
average loan of nearly Sh10 million each.
This will
contribute towards developing local entrepreneurs to compete at regional
level furthering integration and cross-border trade.
HFC
loan will support the much needed longer-term financing to private
enterprises and commercially operated public sector entities in
productive sectors.
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