OeEB and EIB commit €100m to African private sector

Entrepreneurs and businesses most impacted by economic, health and social challenges triggered by Covid-19 will be able to benefit from a new €100 million private sector financing initiative backed by OeEB (the Development Bank of Austria) and the European Investment Bank.

The programme will enhance access to long-term financing across sub-Saharan Africa, help to create thousands of jobs and accelerate sustainable development and poverty reduction. The first joint business financing supported by the two institutions will provide both direct loans to companies in Africa and financing managed by local banks.

”Companies across Africa and Europe are faced by unprecedented challenges caused by Covid-19, with disruption to exports and the need to rapidly change business activity. The European Investment Bank is pleased to join forces with OeEB, the Development Bank of Austria, to provide €100 million to ensure that private sector business across Africa can access long-term financing, create jobs and invest during these challenging times,” said Werner Hoyer, president of the European Investment Bank.

”Improving access to finance for small and medium-sized businesses – particularly in sub-Saharan Africa and the world’s least developed countries – has been one of our core goals for many years. Especially now, in light of the ongoing Covid-19 pandemic which hits SMEs hardest, it has become even more important. We are therefore delighted that this cooperation with the European Investment Bank enables us to provide targeted, much needed support to the private sector and businesses across Africa which helps ensure ongoing investments and secures jobs,” said Sabine Gaber and Michael Wancata, members of OeEB’s executive board.

Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.