Signature(s)
Summary sheet
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The Multi Beneficiary Intermediated Loan (MBIL) to Banque Nationale d"Investissement (BNI) will enhance access to finance to eligible small and medium sized enterprises (SMEs) and mid-caps in the agriculture value chain, in particular in the sustainable cocoa sector, as well as to those supporting youth employment in the Ivory Coast.
The aim is to finance investments in agriculture value-chains (60% contractual target) and support youth employment (50% contractual target), in line with the "Agriculture and Food Systems Sustainability priority" as well as with the EU Multiannual Indicative Plan (MIP) 2021-2027 aiming at "contributing to the employability of young people. By focusing specifically on sustainable cocoa (30% contractual target), a Team Europe flagship initiative in the country, the MBIL will facilitate access to finance to agri-food SMEs and smallholder producers, often facing obstacles and lacking information when applying for funding, and therefore fill a gap in this market segment. Targeting businesses led and/or founded by young entrepreneurs or employing at least 40% of young people is in line with the MIP objective of "supporting private investment, particularly around sustainability issues, and policies that create quality jobs for young people".
MBIL to BNI of Côte d'Ivoire to facilitate access to markets and finance for agri-food SMEs and smallholder producers, with at least 60% of the loan amount targeting agriculture value-chains, such as yam, manioc, rice, cashew, plantain, etc., in line with the EU-Africa Global Gateway ambition by 2030 to enhance "resilience and sustainability of African food systems, in support of Africa's agriculture, fisheries and food development agenda".
At least 30% of the loan amount will target sustainable cocoa, a Flagship Initiative of the EU in Côte d'Ivoire, part of the EU Sustainable Cocoa Initiative which aims to deliver on European Green Deal priorities including promoting deforestation-free trade and ending the scourge of child labour. It contributes to the Team Europe Initiative on Deforestation-free Value Chains and the Global Gateway Initiative to protect forests and combat illegal logging in Côte d'Ivoire.
At least 50% of the loan amount will target companies that support youth employment, in line with the Global Gateway's overarching ambition to create sustainable growth and jobs for Africa's growing youth population. Moreover, BNI will be encouraged to allocate the loan from EIB to businesses that empower women, promoting gender equality and economic inclusion.
It will contribute towards addressing the market failure of imperfect information and the ensued obstacles to access to finance that SMEs are confronted with when applying for funding. The availability of longer-term funds in Euros will enable BNI to diversify its funding sources and extend the tenors of its underlying loans.
The intermediary has to take all the requisite measures to ensure that the procedures including procurement procedures carried out by the final beneficiaries for the sub-projects receiving BNI's financing will comply with national legislation and the ElB's Environmental and Social Standards as well as international treaties and conventions signed and ratified by or otherwise applicable and binding in the country, in particular ILO Conventions 138 (Minimum age) and 182 (Worst forms of child labour). By promoting the financial inclusion of agriculture value chain actors and SMEs, the project will deliver significant positive social outcomes through its thematic focus on the sustainable cocoa sector and youth employment. Moreover, support to food value chains under the scheme can contribute to increased self-reliance and therefore reduce vulnerability to external shocks.
The intermediary has to take all requisite measures to ensure that any procurement procedures carried out by the final beneficiaries are in accordance with the EIB's Guide to Procurement.
Under EFSD+ Guarantee