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Add to Preferred SourcesThe African Development Bank has approved a US$50 million line of credit to Nigeria’s Sterling Bank Plc to support micro, small and medium-sized enterprises (MSMEs) in strategic sectors, including agriculture, renewable energy and social sectors such as health and education.
The facility, approved by the Bank’s Board, seeks to improve the quality of life for Nigeria’s rural population by supporting sectors that directly affect the livelihood of its population. The facility aims to increase access to social infrastructure such as healthcare centers, education centers and clean energy plants and spur economic activities in agriculture-related functions.
It aligns with Nigeria’s Economic Recovery and Growth Plan 2017-2020 (ERPG), which aims to promote macroeconomic stability and improved economic performance. It enhances a transition to Inclusive & Green Growth (TYS) and is equally aligned with the Bank’s Climate Change Action Plan 2016-2020, which encourages climate-smart investments and best agriculture practices by smallholder farmers while empowering socially and economically rural populations.
The seven-year credit facility will improve its long-term liquidity position and meet its clients’ demands for medium-term capital. Co-operatives and women-led SME’s will be the largest beneficiaries, which will also support Sterling’s strong rural coverage and boost its specialization in the “HEART” sectors (Health, Education, Agriculture, Renewable energy, and Transportation).
The African Development Bank’s Country Strategy Paper (2013-2017) for Nigeria aims to support the delivery of critical infrastructure development projects, and increasing access to quality, reliable, and affordable financial services to support the transition to green growth.
The line of credit to the Nigerian financial institution supports the Bank’s High 5 priorities of Improving the Life of the People of Africa, Feed Africa, and Light-Up & Power Africa
Original source: AfDB
Published on 26 September 2018