By Enyichukwu Enemanna
The government-owned China Development Bank (CDB) has agreed to support African small and medium-sized enterprises (SMEs) with the sum of $400 million in loan term.
A development-focused agreement for provision of the fund was reached with the African Export-Import Bank (Afreximbank).
Afreximbank will deploy the facility to support SMEs involved in extra- and intra-African trade, as well as those engaged in the productive sectors in Afreximbank member states.
The facility has a seven-year repayment period.
According to a statement by Afreximbank, the funds will be deployed either directly to eligible African SMEs that meet the requirements or indirectly through their local financial institutions.
The President and Chairman of Afreximbank, Benedict Oramah, says African SMEs continue to struggle inadequate access to affordable financing which he said has hampered the growth of business across the continent.
“The facility further strengthens the strategic partnership we have developed with the CDB over the last six years, which has seen it make three previous interventions in support of our work at Afreximbank,” he added.
