Signature(s)
Summary sheet
- Credit lines - Credit lines
The project consists of a loan to Afreximbank for supply chain financing support to private sector entities in Africa. Under this operation, the financing solutions offered by Afreximbank directly, or via other financial intermediaries, will be dedicated to support private sector loans primarily denominated in hard currency.
The purpose is to enhance access to finance for small and medium sized enterprises and MidCaps. This project contributes to several Strategic Development Goals and focuses on supporting intra and extra African trade.
The operation concerns a loan to the financial intermediary Afreximbank for supply chain financing support to private sector entities in Africa. The financing solutions offered by Afreximbank directly or via other financial intermediaries may include products like import finance, pre-export financing and prepayment financing. The project is expected to contribute towards addressing the market failure of imperfect information and the ensued obstacles to access to finance that Small and Medium Enterprises (SME) are confronted with when applying for funding by enabling SMEs to access hard currency financing, improve employment and reduce poverty. The provisioning of EIB funding at appropriate terms and conditions will contribute to strengthen the borrower's funding profile and will support its on-lending to SMEs in particular. The project falls under the remit of the European Union's (EU) external action, the Neighbourhood, Development and International Cooperation Instrument (NDICI) and its Investment Framework as well as the African Union's Agenda 2063 and the EU Sub-Saharan Africa Multi-Annual Indicative Programme 2021-2027, which supports a stronger regional and continental economic integration through inclusive economic growth and job creation. The operation will advance several Sustainable Development Goals (SDGs), especially SDG 8 (decent work and economic growth) and SDG 10 (reduced inequalities).
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.