Oikocredit announces US$ 10mln loan to APC to support SMEs in Africa
Strategic move and new partnership will boost economic empowerment across the continent.
NAIROBI June 17, 2024 – Social impact investing cooperative Oikocredit has made a first-time loan of US$ 10 million [€9.3mln] to AfricInvest Private Credit [APC] to augment support for small and medium enterprises [SMEs] throughout Africa.
APC is committed to providing SMEs with access to medium- to long-term credit, with a particular focus on enterprises underserved by mainstream financial institutions, often because they lack adequate collateral.
In addition to providing tailor-made financial solutions, APC offers capacity-building initiatives to help investee companies thrive and expand sustainably. This comprehensive approach aligns seamlessly with Oikocredit’s mission of fostering sustainable economic growth and development.
Oikocredit’s capital infusion will enable APC to increase its lending activities to a diverse portfolio of companies across multiple African countries. This strategic deployment of resources is essential to achieve a thriving SME sector, the backbone of Africa’s economy.
Kouraiech Belhajali, CEO of APC, said: “We are proud of our new partnership with Oikocredit. This facility will support us in continuing to serve the underserved in Africa, widening APC’s target market and reach. Through this capital infusion we look forward to the opportunity to increase our impact in terms of economic growth, employment and inclusion.”
Lewis Nyaga, Investment Officer at Oikocredit, said: “We are extremely pleased to announce our new partnership with AfricInvest and this important debt facility designed to strengthen African SMEs. AfricInvest’s extensive expertise and network, coupled with Oikocredit’s dedication to impactful social investing, will help client enterprises become catalysts for positive change in their communities.”
About AfricInvest Private Credit
AfricInvest Private Credit headquartered in Tunis, Tunisia, but with affiliates in Algeria, Morocco, Kenya, Algeria, and Ivory Coast, is a debt vehicle created in partnership with the Dutch development bank FMO, MicroVest and Finnfund, with a debt facility extended by the US International Development Finance Corporation. Its aim is to provide innovative financial solutions and value addition to SMEs across the African continent.
APC offers SMEs tailored debt financing solutions to sustainably grow their business, bridging the SME financing gap in Africa.
About Oikocredit
Domiciled in Netherlands, Oikocredit has nearly five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy. Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably. Oikocredit finances more than 520 partners, with total outstanding capital of € 1,136.1 million [at March 2024].
y your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
Views: 2
