The Eastern and Southern African Trade and Development Bank Group (TDB Group), Japan International Cooperation Agency (JICA), Citibank, and SMBC Group (SMBC) have signed a EUR 240 million facility agreement aiming to foster and facilitate private sector development in less developed countries (LDCs).
The signing ceremony took place on February 26th, 2024, at TDB Group’s Operations Hub in Nairobi, Kenya. The line of credit is composed of a long-term project finance tranche from JICA, and a short-term trade finance tranche from SMBC and Citibank. The facility is expected to increase access to finance for MSMEs, enabling them to invest in growth, innovation, and job creation.
“We look forward to working together to address the unique needs of the African region we serve, fostering cross-border cooperation and leveraging innovative financial solutions, to bolster economic resilience for the private sector and promote inclusive and sustainable growth,” commented Admassu Tadesse, TDB Group President and Managing Director.
Further, the facility will look to support investments in agribusiness expansion and agricultural innovation through innovative practices and technologies and supply chain improvements. It will focus on supporting investments in industrial development including in manufacturing, as well as in infrastructure development to catalyse an enabling business environment.
“At Citi, we are committed to bringing solutions to our clients and this blended finance facility signifies not just an investment, but a commitment to fostering sustainable development and uplifting communities,” Martin Mugambi, Citibank Kenya CEO said.
Through direct lending to private sector, co-financing and on-lending via financial intermediary, the facility is poised to positively impact livelihoods, reducing poverty and creating employment, opportunities including in rural areas, to contribute to improving food security and sustainable food systems, as well as to overall economic growth and stability.
“This transaction will be instrumental in creating social value and generating economic growth by supporting microfinance and agribusiness activities in TDB’s member countries,” commented Hirokazu Okado, Managing Director of International and Structured Finance, SMBC Group.
