CBA to receive $90-million from AfDB to fund SMEs and boost trade finance in Africa
January 25 2017 – CBA’s funding of small and medium-sized enterprises (SMEs), is set to get a major boost following a US $90-million funding from the African Development Bank (AfDB). This is after the AfDB Board of Directors approved the financial package comprising US $50-million Line of Credit and US $40-million Trade Finance Line of Credit (TFLoC).
The funding is aimed at supporting SMEs and local corporates in infrastructure, tradable and other transformative sector transactions in Kenya. The financial package will provide liquidity support to expand financing to small and medium enterprises (SMEs) and local corporates involved in value-addition in the trading, manufacturing, agriculture, infrastructure, transport, and construction, among other sectors. In so doing, it will enhance job creation and facilitating financial access to businesses.
This intervention will contribute to CBA’s efforts to broaden access to its services, thus reduce financing constraints faced by SMEs and local Corporates in Kenya whilst also reducing Africa’s trade financing gap. This will also promote private sector development as well as supporting broad-based economic growth.
The financial package will also contribute to CBA’s endeavours to complement the efforts of various partners such as the Government of Kenya’s Long Term Development Strategic Agenda Vision 2030, which seeks to revitalize the economy by developing infrastructure and improving access to affordable credit for SMEs which is working towards supporting the economic transformation of Kenya’s economy to make it more resilient and diversified.
This intervention is well aligned with AfDB’s Ten Year Strategy 2013-2022, as well as the Bank’s High 5 strategic priorities, including Industrialize Africa, Integrate Africa, Feed Africa and Improve the quality of life for the people of Africa. It will help to increase enterprise development and competitiveness through expansion of the economic base. This will be made possible by enhancing access to financial services and expanding access to social and economic infrastructure which will thus contribute to inclusive growth.Back