First City Monument Bank (FCMB) and the African Development Bank (AfDB) have agreed to a $50 million line of credit in order to promote small- and medium-sized businesses that are also controlled by women.
Affirmative Finance Action for Women in Africa (AFAWA), an initiative of the African Development Bank, is also offering a complementary technical assistance package of $285,000 as part of this project. The grant money from the Women Entrepreneurship Finance Initiative (We-Fi) will help women-owned firms improve their financial literacy, company management, and entrepreneurial skills while also making the FCMB’s monitoring and reporting capabilities stronger.
The line of credit will be used by FCMB to increase lending activities that will aid in the post-pandemic economic recovery of the nation and promote inclusive and climate-resilient growth. It will concentrate on businesses in Nigeria’s manufacturing, healthcare, and renewable energy industries.
“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,” said Lamin Barrow, director general of the African Development Bank for Nigeria.
“We are pleased to cooperate with the African Development Bank to generate increased opportunities and hasten the post-COVID-19 pandemic economic recovery for SMEs and women-owned enterprises in Nigeria through funding and technical support,” said Yemisi Edun, managing director of FCMB. We deliberately seek out partnerships that advance entrepreneurs’ abilities, promote industrialization, and generate income, wealth, and employment for Nigerians.
“FCMB will be better positioned to scale up the deployment of its customised goods and services to satisfy the needs of SMEs and women-owned firms,” Barrow added. “At least 30 percent of the funds from the Line of Credit will be channelled to women owned enterprises.”
According to her, the deal demonstrated the African Development Bank’s faith in FCMB’s capacity for expansion and corporate governance frameworks.
The initiative is anticipated to increase the availability of financing for at least 50 businesses, including 29 in the industrial and agricultural sectors, 9 in the renewable energy sector, and 13 in the healthcare sector. A minimum of 1000 employment will be generated, and about 14 female entrepreneurs will be able to obtain long-term investment as a result.
Two pillars serve as the foundation for the African Development Bank’s current strategy: fostering social inclusion through agribusiness and skill development; and supporting infrastructure development. The 53 operations that make up its present Nigeria portfolio have a combined value of $4.5 billion. The value of the 23 non-sovereign activities is $1.8 billion, while the value of the thirty sovereign businesses is $2.7 billion.
- FCMB signs $50 million deal to increase small- and medium-sized women-owned enterprises’ access to financing
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