The Ecobank group obtains a 100 million euro credit facility from the European Investment Bank to finance SMEs
The Ecobank Group, the leading pan-African banking group, has signed an agreement for a Long-term credit facility of 100 million euros over 9 years with the European Investment Bank (EIB). The facility affirms joint targeted support from the Ecobank Group and the EIB for business investment across Africa, with particular support to sectors most affected by the COVID-19 pandemic.
Ade Ayeyemi, Managing Director of Ecobank Group, said: “At Ecobank, we are fully committed to delivering a range of initiatives that support the growth and success of African small and medium enterprises and create employment opportunities. This informed the credit facility we have just secured from the EIB and which we believe will have a real impact in our common mission of developing SMEs across Africa. The € 100 million facility will support the recovery of African SMEs from the COVID-19 pandemic while helping them give them the momentum needed to seize the immense growth opportunities of the vast single market of the free trade area African mainland. We thank the EIB for its attention and commitment to the continent.“
Ambroise Fayolle, Vice-President of the European Investment Bank, said: “The EIB, as a member of Team Europe, works with leading banks and financial partners across Africa to improve private sector access to finance. This latest cooperation with the Ecobank group will help businesses better meet the challenges triggered by the COVID-19 pandemic, open up economic and social opportunities, especially for SMEs and women-owned and-led businesses, through the Sub-Saharan Africa in the coming weeks.. “
The latest cooperation between the Ecobank Group and the European Investment Bank to support private sector investments in Africa was formally agreed to the EU Delegation to Togo in Lomé, in the presence of Koen Doens, Director General of Cooperation international and development at the European Commission.
The announcement was made during a visit of Team Europe to Togo by EIB Vice-President Ambroise Fayolle, Rémy Rioux, Director General of the French Development Agency and Koen Doens.
The facility is divided into three regional facilities: West and Central Africa, East Africa and Southern Africa. Funding will be provided by Ecobank subsidiaries, for investment projects undertaken by private sector companies. The EIB made the facility available to private sector entities active in eligible productive sectors, through its COVID-19 Rapid Response Mechanism, with fewer than 3,000 employees.
The EIB loan will also be accompanied by technical assistance under the EIB’s African Women Rising Initiative (AWRI) program with gender-focused training and capacity building for loans to women entrepreneurs, closely aligned with the Ellevate by Ecobank initiative which supports women businesses across the continent. Ecobank Group and BEI both recognize the importance of ensuring access to finance for women-owned and women-focused businesses, especially in times of economic and investment uncertainty related to COVID-19. The Ecobank group and the EIB are also working on a € 15 million “SME access to finance” risk-sharing agreement granted by the European Fund for Sustainable Development (EDFD), which will support loans to SMEs of up to worth 95 million euros.
This facility agreement follows the signature by the EIB of a Loan of 12.5 million euros to Ecobank Malawi in December 2020, to improve access to finance for SMEs in the agricultural sector in Malawi in order to expand, upgrade and modernize their equipment.
About the European Investment Bank
Since its creation in 1958, the European bank has invested more than one trillion euros. While climate action is part of everything we do, our activities focus on the following priority areas: climate and environment, development, innovation and skills, small and medium-sized enterprises, infrastructure and cohesion. The EIB works closely with other EU institutions to foster European integration, promote EU development and support EU policies in over 140 countries around the world. For more information please visit www.bei.org
About Ecobank Transnational Incorporated (“ETI” or “The Group”)
Ecobank Transnational Incorporated (“ETI”) is the parent company of the Ecobank Group, the leading independent pan-African banking group. The Ecobank Group employs approximately 14,000 people and serves more than 29 million customers in the personal, commercial and commercial banking sectors in 33 African countries. The Group has a banking license in France and representative offices in Addis Ababa, Ethiopia; Johannesburg, South Africa; Beijing, China; London, United Kingdom and Dubai, United Arab Emirates. The Group offers a full range of banking products, services and solutions, including bank and deposit accounts, loans, cash management, advisory, trading, securities, wealth and asset management. ETI is listed on the Nigerian Stock Exchanges in Lagos, the Ghanaian Stock Exchange in Accra and the Regional Stock Exchange in Abidjan. For more information please visit www.ecobank.com