Economic Development in Eastern Africa
In a nutshell
Being an entrepreneur in any part of the world requires a lot of hard work and taking (calculated) risks. Deliverables have to be produced, networks have to be established and employees have to be paid. Besides a healthy amount of courage, starting and maintaining a small or medium-sized enterprise (SME) requires having a stable financial basis that allows for new steps to be taken.
The European Investment Bank has set up a system of credit lines of approximately 1 billion euros to support Microfinance borrowers and SMEs (MSMEs) in up to 15 countries in Eastern Africa. The agriculture & finance experts at AFC have been contracted to both guide the allocation of these loans, as well as to aid with establishing sustainable internal structures for the intermediary parties overseeing their distribution.
With a running time of 6 years, AFC is able to structurally invest in building a strong framework that will make this financing trajectory sustainable for many years to come. This involves the implementation of capacity-building activities and various training programmes for financial intermediaries on topics such as credit and operational risk management and product development.
With this underlying network in the works, the programme also offers dedicated support actions tailored to the needs of MSMEs. Because running a successful business requires a lot of technical know-how, we host outreach events where participants will be trained in the use of practical tools and practices, such as entrepreneurship skills, business planning, and financial literacy.
Together with all stakeholders involved in this programme, our ambition is to establish a mutually enforcing financial partnership that will boost the