Multilateral development finance institution and financial provider to African governments and private companies investing in the regional member countries, the African Development Bank (AfDB) has entered an agreement with First City Monument Bank FCMB)to credit the Nigerian bank $50 million, with a bid to give access to financing small and medium-sized and women-empowered enterprises.
The new deal will see FCMB utilize the line of credit to expand lending activities so as to boost Nigeria’s post-pandemic economic recovery while driving inclusive and climate-resilient growth.
A statement by FCMB said the line of credit will beam its focus on enterprises in the country’s agribusiness, manufacturing, healthcare, and renewable energy sectors.
The Affirmative Finance Action for Women in Africa (AFAWA) initiative by the African Development Bank (AfDB) will also be providing a complementary technical assistance package of $285,000 while the grant funding, facilitated by the Women Entrepreneurship Finance Initiative (We-Fi) will help in enhancing financial literacy, business management and entrepreneurial skills for women-led businesses as well as strengthening FCMB’s monitoring and reporting functions.
“The Bank’s support to FCMB will advance the objectives of the Affirmative Finance Action for Women in Africa (AFAWA) initiative, which seeks to improve gender inclusivity by enhancing access to finance for women entrepreneurs, says Lamin Barrow, Nigeria’s AfDB Director General.
“With at least 30 percent of the funding from the Line of Credit to be channeled to women-owned businesses, FCMB will be better positioned to scale up the deployment of its tailored products and services to meet the needs of SMEs and women-owned businesses,” he said.
Yemisi Edun, the Managing Director, of First City Monument Bank (FCMB) while expressing her happiness over the deal said:
“We are happy to collaborate with the African Development Bank to create expanded opportunities and accelerate post-COVID-19 pandemic business recovery for SMEs and women-owned businesses in Nigeria through funding and technical support. We are intentional about collaboration that upskills entrepreneurs, drives industrialization and creates economic value, wealth, and employment for Nigerians.”
According to Edun, the agreement further confirmed the AfDB’s confidence in the bank’s growth potential and corporate governance structures.
The new deal is primed to improve access to finance for at least 50 enterprises: 29 in the agribusiness and manufacturing sectors, 9 in renewable energy, and 13 in the healthcare industry, while it is expected to create a minimum of 1000 jobs and enable roughly 14 female entrepreneurs to gain access to long-term funding.
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