SMEs to benefit from AfDB funding
07 April 2014, 11:16
Nairobi - The African Development Bank (AfDB) said the recently-signed US$20 million trade finance line of credit with Shelter Afrique would boost the availability of trade finance instruments to Small and Medium Enterprises (SMEs) involved in real estate and construction related activities in the country.
The deal was confirmed this past weekend.
In addition, the facility would contribute to addressing the critical shortage of building material while creating jobs and income in the region.
“The AfDB’s four-year facility will allow SHAF to expand its Trade Finance Program, launched in June 2011, under a product diversification strategy to address the acute financing shortage facing real estate developers in Africa,” read a statement from AfDB.
It added that Shelter Afrique would also partner with other financial institutions offering Trade Finance services to SMEs in real estate construction and building industry and those involved in trading/leasing of building materials and equipment.
Through this contribution, AfDB would leverage Shelter Afrique’s market knowledge and networks across the continent and hence assist to alleviate some of the structural financing inefficiencies encumbering Africa’s real estate growth.
According to AfDB, the facility would boost the availability of affordable housing in Africa through financial institutions and SMEs involvement.
This, it states would thereby enhance inclusive growth and private sector development as espoused in the AfDB Long Term Strategy for 2013-2022. Trade facilitation is one of the three strategic objectives of the Bank’s Regional Integration Strategy 2009-2012 as the AfDB seeks to mainstream and institutionalize its engagement in Trade Finance development in Africa.
– CAJ News
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