African Development Bank boosts continent's suppliers

By Freddie Pierce
Follow @JosephWilkesWDM To read the latest edition of Supply Chain Digital click here The supply chain of Africa is to receive a $125 million boost aim...

To read the latest edition of Supply Chain Digital click here

The supply chain of Africa is to receive a $125 million boost aimed at benefiting small and medium enterprises (SMEs) and businesses owned by women.

The African Development Bank (ADB) is supplying the direct funding and a further $3.98 million technical assistant package, with the intention of enabling enable banks to provide standardised lines of credit to SMEs, with a special focus on female and youth-owned businesses.

The funds are being provided in an effort to boost job creation and economic growth across the entire continent. The programme is for four years.

A statement from ADB said: “In response to these challenges the ADB, through this SME programme, will provide the necessary longer-term finance and a technical assistance package to address a number of the constraints faced by around 25 target financial institutions and their SME clients across Africa.”

The $3.98 million support pot will come from the ADB’s multi-donor Fund for African Private Sector Assistance (FAPA). This contribution is the highest amount ever donated by FAPA and is intended to expand support for businesses into more rural areas of Africa, where there are higher numbers of women-owned businesses. It will be used to help 25 money lenders support SMEs, improving their capability and capacity to do so.

This programme is intended to tackle generally the challenges currently facing smaller enterprises in Africa when it comes to acquiring funding. As well as an overall lack of funding sources there is an additional problem with loans, as the majority of those available to SMEs in the continent cover no more than one year.

It is hoped by African officials that promotion of locally-owned SMEs will solidify the economies of the continent’s countries, rather than relying on business created by international companies operating in Africa.


Featured Articles

How will SAP's new AI co-pilot Joule help supply chain?

Find out more about Joule, the new AI co-pilot built into SAP’s cloud enterprise portfolio including procurement and supply chain

Unilever grow their sustainable palm oil supply chain

Unilever have signed an expansion to their agreements in Indonesia to grow the transparency of their palm oil supply chain

New EU Carbon Emissions Tariff and supply chain impact

Importers in Europe face rising prices and administrative bottlenecks as the EU's new carbon emissions tariff comes into effect

Three key themes: Procurement & Supply Chain LIVE 2023

Digital Supply Chain

Global logistics news roundup: DHL, Tesco & AutoStore


Icertis: Generative AI powering procurement contracts