- New $200m credit line is the largest ever business financing cooperation between EIB and TDB, as well as by EIB private sector support in Africa to address trade finance, working capital and supply chain challenges
- Targeted financing designed to assist companies from across multiple sectors including agri-food and manufacturing impacted by ongoing trade challenges
NAIROBI: European Investment Bank and the Eastern and Southern African Trade and Development Bank on Tuesday signed a $200 million loan to contribute to the $400 million private sector investment in agri-food and manufacturing.
The funding focussed on sectors that have been impacted by the disruption of trade flows by the Russia invasion of Ukraine and COVID-19 pandemic.
It is the largest ever cooperation between the EIB and TDB and for EIB private sector support in Africa.
The new credit line is expected to provide working capital, supply chain finance, and investment loans to microenterprises, SMEs and midcap companies across the region served by TDB, including by supporting financing through local financial intermediaries.
The agreement was signed the Radisson Blu Hotel in Nairobi during the EU-Kenya Business Summit in the Presence of President William Ruto.
In a joint statement EIB and TDB said the investment across Africa in areas most impacted by trade and supply chain challenges will be supported by the new financing initiative.
“This amount is expected to support $400 million in new private sector investment, including by companies from across all sectors including agri-food and manufacturing which have been impacted by the disruption of trade flows following the Russo-Ukrainian crisis and COVID-19 pandemic,” the statement said.
The deal was signed at the EU-Kenya Business Forum in Nairobi by Thomas Östros, EIB Vice President and Admassu Tadesse, TDB Group president Emeritus and Managing Director.
They say the deal will unlock $400 million of new investment by companies most impacted by trade shocks triggered by the Russo-Ukrainian conflict and ongoing disruption caused by the pandemic.
Businesses and entrepreneurs across the region served by TDB will be able to access working capital, supply chain financing and investment loans from today,” Östros said.
Tadesse noted that the two institutions have worked together in ensuring business across the region can access finance, while supporting SMEs and climate action, and backing investment in fragile contexts.
“Today’s trade finance-focused credit line will be available both directly from TDB as well as through our local financial partners, and will help to address business investment challenges hampering growth and job creation,” he said.
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Henriette Geiger, the EU Ambassador to Kenya, said her delegation is committed to private sector development in Africa.
“The new cooperation between EIB Global and TDB confirmed at the EU-Kenya Business Forum in Nairobi today will foster cross-border trade, enable agri-food companies to replace wheat imports and accelerate skilled job creation in the years ahead,” Geiger said.
The new cooperation represents the largest business financing cooperation between the EIB, the world’s largest international public bank owned by the 27 EU member states, and TDB, owned by 45 sovereign and institutional shareholders from Africa and beyond.
