• Tuesday, June 18, 2024
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AfDB, FSDH signs $20m deal to support small businesses

Diaspora Nigerians to float N100bn venture capital fund, SME bank

The African Development Bank (AfDB) has signed a $20 million trade finance facility with FSDH to support Small and Medium Enterprises (SMEs) in Nigeria.

This was revealed by Lamin Barrow, director-general of Nigeria Country Department at AfDB, during the signing ceremony on Thursday in Lagos State.

Barrow highlighted the pivotal role of trade in economic development, likening trade financing to its lubricant while explaining that the recently signed $20 million facility includes a $15 million Trade Finance Line of Credit dedicated to assisting eligible SMEs and corporates engaged in international trade value chains.

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“FSDH and the AfDB have enjoyed an enduring partnership in supporting SMEs and Nigerian Corporates engaged in trade and export value chains. In 2016, AfDB extended a $50 million Trade Finance Line of Credit to FSDH. This 3.5–year facility performed well,” he said.

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He added that the bank has supported more than 370 transactions, catalysed $375 million of trade and benefitted 60 SMEs and Corporations in critical sectors including energy, agri-business, health and boosting intra-Africa trade.

He further highlighted AfDB’s support for more than 120 financial institutions across 30 African countries, resulting in the catalysis of over $10 billion in trade over the past decade.