The African Development Bank (AfDB) has signed a $50 million Line of Credit Agreement with Nigeria’s First City Monument Bank (FCMB) to support access to finance for Small and Medium-Sized Enterprises (SMEs) and women-empowered businesses (WEBs).
FCMB will use the proceeds of the Line of Credit to finance SMEs and WEBs in Nigeria’s agribusiness, manufacturing, healthcare and renewable energy sectors.
The funds are intended to mitigate the effects of the challenges created by the COVID-19 pandemic on the business environment in which the beneficiary enterprises operate.
The AfDB will partner with FCMB through a technical assistance grant of $200,000 sourced from the Women Entrepreneurship Finance Initiative (WeFi) under its Affirmative Finance Action for Women in Africa (AFAWA) initiative.
FCMB will deploy the grant resources to provide non-financial services, including training and strengthening of its monitoring and reporting functions for WEBs.
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Other outcomes expected from this operation are improved access to finance for at least 50 enterprises, out of which 29 are envisaged to be in agribusiness and manufacturing, nine in renewable energy and 13 in the healthcare industry.
A minimum of 14 female entrepreneurs will be supported to access long-term funding and at least 1,000 jobs created or sustained.
SMEs account for up to 80% of employment in most African countries and women-empowered businesses typically face a considerable financing gap.
The economy has been hard hit by the COVID-19 pandemic and falling crude oil prices with a ripple effect on the broader economy.
AfDB’s Director General, Nigeria Country Department, Lamin Barrow, said: “The African Development Bank is pleased to partner with FCMB, a financial institution that has continuously demonstrated commitment to supporting and financing small and medium-sized enterprises and women entrepreneurs.
‘’This collaboration will further expand FCMB’s financial support to this underserved group and contribute to the growth of the Nigerian economy.’’
Managing Director FCMB Limited Yemisi Edun said: “We are happy to collaborate with the African Development Bank to create expanded opportunities and accelerate post-COVID-19 pandemic business recovery for small, medium-sized, and women-owned businesses in Nigeria through funding and technical support.
‘’We are intentional about collaborations that upskill entrepreneurs, drive industrialisation, and create economic value, wealth and employment for Nigerians.”
She added: “This collaboration also shows that AfDB truly believes in the growth potential of FCMB, the excellent corporate governance structures we have put in place and our strong performance over the years. We remain committed to empowering our customers and stakeholders to achieve their personal and business aspirations”.
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