The African Development Bank 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), as well as 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 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 US$200,000 sourced from the Women Entrepreneurship Finance Initiative (WeFi) under its Affirmative Finance Action for Women in Africa (AFAWA) programme.
A minimum of 14 female entrepreneurs will be supported to access long-term funding and at least 1,000 jobs created or sustained.
AfDB’s Director General, Nigeria Country Department, Lamin Barrow said: “This collaboration will further expand FCMB’s financial support to this underserved group and contribute to the growth of the Nigerian economy.”
Lamin said the focus and objectives of the bank’s collaboration with FCMB are in line with the African Development Bank’s strategic priorities of promoting gender inclusivity, private sector development, industrialisation, food security, and job creation in the bank’s regional member countries, as encapsulated in its High-5 strategic priorities to ‘Industrialise Africa’, and ‘Feed Africa’.
The Managing Director, FCMB, 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.”