IFU’s Post

Equity Bank Uganda aims to translate the complex national budget into actionable opportunities for Small and Medium Enterprises (SMEs) through stakeholder engagements in Uganda's regional cities and major towns.

Kenya is making a smart play in the global finance arena by issuing new US dollar debt to manage a looming $2 billion repayment. By tapping into the warming bond markets, Kenya aims to refinance and ease the financial pressure without compromising its economic stability. This strategic financial maneuver not only showcases Kenya's proactive approach to debt management but also signals a window of opportunity for emerging markets.    Key Highlights:  ◘ New seven-year US dollar debt initiative to tackle part of the $2bn repayment.  ◘ Successful market entry, inspired by nations like Benin.  ◘ Decrease in yield for the bond due in June, boosting investor confidence.  ◘ Signifies the trend of African countries re-entering the debt market under more favourable global interest rates.    NFSA specializes in unlocking investment opportunities in such dynamic regions. Visit us at www.nimaifs.com #EmergingMarkets #Finance #InvestmentOpportunities #DebtManagement #EconomicStability #NIMAI #NFSA #Africa

Debt products are very key to an investor’s portfolio since they provide consistent income. To an investor, they offer security to the invested amounts while achieving considerable returns above the inflation rate. To the issuers, they provide patient capital since issuers only make payments on interest every 6 months and full payment of the principal amount on maturity. This May 2024, The Nairobi Securities Exchange PLC shall be having an East Africa Debt Capital Markets Masterclass in Naivasha, Kenya. This is a very key Masterclass for finance teams of organisations to learn on why considering having an investment income can be vital for their organisations especially during tough economic times. For more information or booking reach out to training@nse.co.ke #NSEMarketPlace

The European Investment Bank (EIB), which is the EU Bank, has significantly supported SMEs in Kenya by intermediating funds through local banks, such as Equity Bank and Co-operative Bank. The strategy of using these local banks to intermediate lending is a pragmatic approach to boosting Kenya's private sector. These local banks have an intimate understanding of the local business environment, including the unique challenges and opportunities faced by SMEs. By leveraging the established networks and expertise of these banks, the EIB ensures that the funds reach a broader and more diverse range of businesses, including those in underserved or remote areas. In 2021, to support SMEs in Kenya affected by the COVID pandemic, the EIB launched a program dubbed “Kenya COVID-19 Access to Finance” that provided credit lines of EUR 125 million to Equity Bank and Cooperative Bank to on-lend to local SMEs #GlobalGateway #TeamEurope #SMEs #EIB #EUinKenya #MSME

FinDev Canada, the Development Finance Institution of Canada, has provided a $40 million loan to Stanbic IBTC Bank, a subsidiary of Africa's largest bank by assets, Standard Bank Group. This partnership aims to enhance access to sustainable finance in Nigeria, focusing on key sectors including agribusiness, healthcare, education, affordable housing, and sustainable infrastructure. The loan will also provide crucial capital for micro, small, and medium-sized enterprises (MSMEs) and support climate change mitigation and adaptation projects. At least 30% of the loan is allocated to women-owned or women-led businesses, addressing the persistent gender financing gap in Nigeria. This is particularly important given that MSMEs account for 96% of businesses and 84% of employment in the country, yet many women-led enterprises remain unbanked and underfunded. #SustainableFinance #GenderEquality #MSMEsupport #NigerianEconomy #FinancialInclusion

𝐔𝐊 𝐨𝐟𝐟𝐞𝐫𝐬 𝐟𝐮𝐧𝐝𝐬 𝐭𝐨 𝐬𝐮𝐩𝐩𝐨𝐫𝐭 𝐒𝐌𝐄'𝐒 𝐢𝐧 𝐊𝐞𝐧𝐲𝐚 The British High Commission in Nairobi has announced a USD $5.2 million fund to support Kenya's SME sector, with plans to mobilize up to USD $300 million in sustainable finance. The initiative was implemented through FSD Africa, which aims to transform SME financing in Kenya, where businesses currently face prohibitive interest rates of up to 40%, by providing affordable credit access to at least 10,000 MSMEs and supporting over 200,000 people through improved basic services. The 'Listed SME Debt Fund is an approach to addressing Kenya's SME financing challenges, targeting USD $240 million from domestic institutional investors and the remainder from foreign investors. This initiative is important given that SMEs constitute 98% of Kenya's businesses and contribute 24% to the country's GDP, while providing employment to approximately 14 million people, especially among marginalized groups. The fund's structure is designed to create a new asset class for Kenyan institutional investors, particularly pension funds, which currently manage assets exceeding USD $30 billion but have yet to fully utilize their 30% alternative asset investment allowance. By providing a de-risked investment vehicle that will be listed and managed in Kenya, the fund aims to bridge the critical financing gap while offering attractive returns to investors. #financialinclusion #sme #kenya #uk

President William Ruto announced an investment of $100 million (approximately Ksh 13.1 billion) into three major African financial institutions to boost the continent's economic independence and strengthen confidence in its banking sector. Speaking at the African Development Bank Group’s Annual Meetings 2024, President Ruto revealed Kenya's plans to inject funds into the African Development Bank, African Export-Import Bank (Afreximbank), and the Trade and Development Bank Group - TDB Group over the next three years. This investment aims to increase Kenya's shares in these banks and encourage African nations to take ownership of their financial institutions. "It is urgent that African integration be deepened to spur increased intra-continental trade. This intervention will accelerate economic growth and generate more productive jobs for millions of our young people." said President Ruto. Additionally, Kenya plans to allocate Ksh 2.6 billion to the Africa Development Fund (ADF), the concessional wing of the AfDB, which assists countries in various stages of economic development. President Ruto highlighted the need for fairer international lending terms for African nations, pointing out the disparity in interest rates compared to other regions. He called for reforms to promote equitable lending practices, emphasizing that the current unjust financial architecture burdens African countries with high debt servicing costs, hindering their development efforts. #AfricanIntegration #Kenya #AfDB #Afreximbank #Africa #EconomicGrowth

🚀 Unlocking $150 Million for 🇿🇲 Zambian SMEs: Explore how Zambia is breaking down barriers to affordable credit for small and medium-sized enterprises. 💡The Bank of Zambia (BoZ) and the Zambian National Advisory Board for Impact Investment (NABII) are collaborating to design a $150 million Credit Risk Guarantee Scheme (CRGS) that will provide low-cost credit to formal and informal SMEs operating in the agriculture value chain. 🎯 Through a grant supported by the C3 collaborative, the NABII and partners, including GSG, the Collaborative for Frontier Finance, USAID Edge, and Mentor Me Africa are working to assess demand and supply-side gaps to create a mechanism that would meet the needs of commercial banks to expand and extend their loan portfolios. This initiative, featured in the “Time To Accelerate” report, shows how targeted and tailored financial instruments can address structural financing issues, driving growth and resilience in local economies. 🌍🌾 📘 Learn more about this and other impactful strategies in the “Time To Accelerate” report (link in the comments ⬇️). #SMEs #SustainableDevelopment #Zambia #emergingmarkets

A great step in eliminating barriers of #accesstofinance faced by agri-SMEs which will positively impact smallscale producers and strengthen agricultural value chains.

𝐄𝐚𝐬𝐭 𝐀𝐟𝐫𝐢𝐜𝐚𝐧 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐁𝐚𝐧𝐤 (𝐄𝐀𝐃𝐁) 𝐓𝐚𝐤𝐞𝐬 𝐌𝐚𝐣𝐨𝐫 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐒𝐭𝐞𝐩 The EADB has written off $13.03 million in loans, underscoring the economic challenges faced by its member countries. Uganda's default on a $1.02 million loan last year triggered this move. The write-off, a significant leap from $140,000 in 2022, involves assets like apartment blocks and land, set for sale in the coming year. Despite this, EADB’s net profit surged 98% to $13.05 million in 2023. The bank continues to navigate its path to financial stability, with Rwanda increasing its stake to 18.21%. How can regional banks better support economic recovery while managing financial risks? Share your thoughts! #Finance #Banking #EconomicDevelopment #EADB #EastAfricanCommunity #EAC #TradeAndInvestment