AfDB, FCMB sign $50m credit for SMEs

The African Development Bank (AfDB) has signed an agreement with First City Monument Bank (FCMB) Plc for a $50 million credit to support access to finance for small and medium-sized and women-empowered enterprises.

FCMB will use the line of credit to expand lending activities to boost the country’s post-pandemic economic recovery and drive inclusive and climate-resilient growth.

It will focus on enterprises in Nigeria’s agribusiness, manufacturing, healthcare and renewable energy sectors, a statement by the bank said.

AfDB is also providing a complementary technical assistance package of $285,000 under its Affirmative Finance Action for Women in Africa (AFAWA) initiative. The grant funding, provided by the Women Entrepreneurship Finance Initiative (We-Fi) will support enhancing financial literacy, business management and entrepreneurial skills for women-led businesses as well as strengthening FCMB’s monitoring and reporting functions.

AfDB Director General for Nigeria, Lamin Barrow, said: “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.

“With at least 30 percent of the funding from the Line of Credit to be channelled 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,” Barrow said.