Kenya: Local firms stand to benefit from Sh16.6 billion (€160 million) lending programme that will see businesses secure foreign currency credit facility.
The new facility follows a deal between European Investment Bank (EIB) and the Eastern and Southern African Trade and Development Bank (PTA Bank) to support investment across eastern and southern Africa.
Under the deal inked in Nairobi, agribusiness, energy, manufacturing and service sector industries will access a seven-year loan in local currency, or a 15-year loan in US dollars or euros from PTA Bank.
EIB Vice-President Pim Van Ballekom said the new programme reflects a shared commitment to support private sector in Africa.
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“The new lending programme is the largest ever engagement to support business investment in Africa by the EIB. This will help firms in 12 countries to create new jobs and explore new business opportunities in key sectors,” Ballekom said, adding that it will support investment by larger companies for the first time.
The programme is being managed in the region by the PTA Bank.
“We are delighted to join forces with the EIB to give the much-needed boost to increased investment in the real economies of eastern and southern Africa, which is key to job creation and economic transformation. The programme is a strong addition to other lending programs we have launched with other funding partners,” said PTA President Admassu Tadesse.
European Investment Bank is the world’s largest multi-lateral finance institution. Last year, it provided 1.1 billion euros for investment in sub- Saharan Africa. Eastern and Southern African Trade and Development Bank was established on November 6, 1985.
