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German bank to support 10,000 Nigerian SMEs with $33 million credit facility 

About 10,000 SMEs are set to benefit from the $33 million credit facility given by the German lender, KfW Development Bank.

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German bank moves to support 10,000 SMEs with $33 million credit facility 

KfW Development Bank, a German bank, is set to empower 10,000 Small and Medium-sized Enterprises (SMEs) with $33 million credit facility.

The German bank designed the initiative to support the African Guarantee Fund (AGF) realise its goal of providing financial guarantees to African entrepreneurs.

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This was announced by AGF’s Group Chief Executive Officer (CEO) Felix Bikpo. According to Bikpo, the bank’s funding would enable the group to carry out its initiatives in Africa.

He said that this new injection came at a time the continent’s SME sector had been singled out as a key driver of growth.

[READ ALSO: World Bank picks holes in CBN’s policies on lending, MSMEs loans(Opens in a new browser tab)]

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Bikpo made known that the group would also be partnering financial institutions so as to create 30,000 jobs on a yearly basis.

“We are excited about the confidence our shareholders and partners have in what we are doing in Africa. This capital injection will go a long way in ensuring that we continue to make a positive impact on the continent.

 “So far, we have cumulatively issued more than $1 billion worth of guarantees, making available about $1.7 billion for SME financing through our partner financial institutions. This has led to the creation of more than 100, 000 additional jobs,” Bikpo said.

[READ MORE: Tony Elumelu Foundation partners UNDP to support SMEs in Nigeria)

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Why this matters: This funding would enable African SMEs to continue to play their critical role in driving Africa’s economy as the AGF platform aims to create easy access to financing for SMEs across the continent.

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Speaking further, The Nation reported that Bikpo described the milestones reached by the organization. He disclosed that 20,000 African SMEs had benefitted from the AGF Guarantees, 60% of who are young people across Africa.

He also said 30% of the SMEs are owned by women, adding that youths and women are demographics that heavily impact Africa’s economy.

About AGF: The AGF was founded by the government of Denmark through the Danish International Development Agency (DANIDA); the government of Spain through the Spanish Agency for International Cooperation and Development (AECID) and the AfDB. Other shareholders include French Development Agency (AFD), Nordic Development Fund (NDF), Investment Fund for Developing Countries (IFU) and KfW.

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - chidinma.nwagbara@nairametrics.ng

2 Comments

2 Comments

  1. Mgbodim Ebubechukwu Valentine

    January 14, 2020 at 1:00 pm

    Good afternoon Sir I am Mgbodim Ebubechukwu Valentine I am from Anambara state of Nigeria, I am into production, i do produce house paints but I am doing it in small quantity with my hand please Sir i need your support to buy the machines for the project, help me ten million naira will be enough to buy all that’s needed. I will be paying you back on monthly or in every six month, based on the arrangement of the organizations plan

  2. Anodebenze

    January 20, 2020 at 5:12 pm

    Young man mgbodim valentine,”YOU ARE WASTING A LOT TIME,TIME IT’SELF IS MONEYit also depend on the level of your education,if your level of education is not deep,go and sees somebody with an university education,a friend or a relation in your community, with your proposal who will do your business analysis for you and free on this basis (1)this is a business entity with it’s potentials and it’s future trends and on your market or your targeted market do you wishes to open alocalpaint shop or a building shop or do you wants to be apaint manufacturer or do you aim to sell in Onitsha as a wholesaler or retailer.i.e WHAT DO YOU WANT ? DO YOU WANT TO BE A SMALL SCALE MANUFACTURER OR A MAJOR PAINT MANUFACTURER (2)WHAT IS YOUR NICHE ?WHAT EDGE YOU HAVE OVER OTHER PAINT MANUFACTURER IN NIGERIA OR YOUR OWN STATE ANAMBRA STATEthere is a paint manufacturer in awka,the capital of Anambra state,which is owned by mr nwangwo from abagana,(3) you ask your friendly business analysis to do a financial on what you are doing now and on what you think you want in future.
    After reading this business anlysis,and you should believe in this business analysis,if you have any doubt ask him/her question,you should be transparent in what you are doing,what machine you wants to buy and where you wants to buy.I SAID IF YOU DO NOT BELIEVE THIS BUSINESS ANALYSIS,NO BANK WILL GIVE YOU ANY MONEY,you must have the passion in what in what to do,if you do not have any faith in yourself,the bank will not have any faith in yourself,ask any you shall have,have faith in yourself,you can borrow a or you can have small sum of 1 million naira from any bank in Onitsha without any security or colaterall,sample opinion with the bank in your bank in your area.i know what I am talking about,i did worked as a young retail banker,and I do have a very young sister,who uses to work with Zenith bank,she does bank loan marketing analysis and marketer for their bank
    Or you maybe patient,once the economy picks up,you can approach some venture capitalist in Nigeria,they will give you some money and will acquires some percentage of you company ownership
    Do not be afraid,you will get atleast 1 million from any bank in Nigeria,be honest with yourself,honest is still the best policy,there is no shot-cut in being rich,work hard and the almighty God will reward you for your hardwork

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Economy & Politics

Just in: Buhari seeks approval from green chamber to borrow fresh $5.5billion

Buhari, is also seeking the approval for the revised 2020-2022 mid-term expenditure framework (MTEF) which became necessary as a result of the crash in crude oil prices and the cut in the production output.

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President Muhammadu Buhari is seeking the approval of the House of Representatives to borrow fund to finance capital projects at the federal and state (to support state governors) levels in the 2020 budget.

This request was disclosed via the official twitter handle of the House of Representatives.

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The president’s letter, which indicated that the fund would be sourced locally and internationally, was read on the floor of the House of Representatives by the Speaker, Femi Gbajabiamila, during plenary on Thursday, May 28, 2020.

In the letter to the lower chamber, Buhari, is also seeking the approval for the revised 2020-2022 mid-term expenditure framework (MTEF) which became necessary as a result of the crash in crude oil prices and the cut in the production output.

Although the tweet did not contain the total amount of loan that is being requested, reports suggests that the President is seeking approval to borrow the sum of $5.513 billion from external sources to finance 2020 budget deficit and support state governments to meet challenges caused by the coronavirus pandemic.

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Details shortly…

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Business News

CBN’s MPC unlikely to cut rates, as Nigeria’s foreign reserves hit $36.16 billion

Note that Nigeria’s inflation could potentially rise to 14% by the end of the year due to a higher VAT and a weakened naira.

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CBN, GTBank, CBN disagrees with IMF, says land border closure boosting local production, Border closure: Emefiele says Benin, others must engage Nigeria before borders are reopened , bvn 2.0, CBN reveals banks’ foreign assets rise to N14.19 trillion in 2019

The CBN’s Monetary Policy Committee (MPC) is expected to leave the interest rate of 13.5% unchanged during its meeting later today.

The projection is coming on the heels of macroeconomic fundamentals released by the National Bureau of Statistics (NBS), which showed that inflation rose to 12.34%; its seventh consecutive monthly rise and highest level since April 2018.

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Note that Nigeria’s inflation could potentially rise to 14% by the end of the year due to a higher VAT and a weakened naira. Therefore, in order to minimise the risk of exacerbating inflationary pressures, the CBN is unlikely to further cut rates. This possible outcome from the MPC meeting will help stimulate economic growth, just like it did in 2019.

Meanwhile, despite the foreign exchange liquidity crisis being experienced in the currency spot market, data obtained from CBN revealed that the country’s foreign exchange reserves have further increased to $36.16 billion (Gross Estimate) as of 28th of May, 2020.

(READ MORE: Naira depreciates to N460/$1 at the parallel market, despite improved liquidity)

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The surge in Nigeria’s external reserves is due to the fact that the price of crude had gained more than 40% since the deadly COVID-19 pandemic started, coupled with reports that foreign investors are returning to Nigeria. The disbursement of $3.4 billion emergency facility by the International Monetary Fund (IMF) to CBN has also been a contributing factor.

Nigeria’s foreign exchange reserves hit $36.16 billion, Nigeria’s Central Bank MPC meet today

Recall that the CBN Governor, Godwin Emefiele, had promised more liquidity in the currency market, assuring that all genuine dollar demands would be met.

However, an Interest rate expert, Ola Oladele, during a phone chat with Nairametrics, advised that the CBN should keep its word by boosting Nigeria’s Forex supply as the persistent downtrend in the currency black market continues. She said:

“The depreciation of the naira in the parallel market as a result of low supply of FX from official sources and less optimistic outlook on the economy due to falling oil prices.

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“The BDCs haven’t received supply from official sources since our borders were closed and the crash in oil prices has made natural sellers of FX more cautious.

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“We hope that the recent statements by the regulator will restore confidence and subsequently, supply to the market.”

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Economy & Politics

Fourth Mainland Bridge to begin before December

The bridge is also designed to be a two-level bridge – the upper level will function as a means for vehicular traffic, while the lower level will stimulate and accommodate pedestrian, social, commercial and cultural interactions.

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Fourth Mainland Bridge to begin before the end of 2020

The Lagos state government has announced that in line with its vision for a smart city, work on the Fourth Mainland Bridge, will commence before the end of year 2020.

In addition to this, construction of the Lekki Regional road will also commence within the next seven months.

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Special Adviser to the Lagos State Governor on Works and Infrastructure, Engr. Aramide Adeyoye disclosed this during the Ministerial Press briefing organised by the State Government  

The architectural design done by NLE works proposed a design speed of 140km on the bridge, with 8 interchanges to facilitate effective interconnectivity between different parts of the State, and a Four-lane dual carriageway with each comprising 3 lanes and 2metres hard shoulder on each side.

(READ MORE: British High Commission releases flight schedule for final evacuation)

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The bridge is also designed to be a two-level bridge – the upper level will function as a means for vehicular traffic, while the lower level will stimulate and accommodate pedestrian, social, commercial and cultural interactions.

The proposed 38 km long fourth mainland bridge is expected to run through Lekki, Langbasa and Baiyeiku towns along the shoreline of the Lagos Lagoon estuaries, further running through Igbogbo River Basin and crossing the Lagos Lagoon estuaries to Itamaga Area in Ikorodu. It will then cross the Itoikin road and the Ikorodu – Sagamu Road to connect Isawo inward Lagos Ibadan Expressway at Ojodu Berger axis.

All of these routes are known to be traffic prone areas, and the construction of the bridge will ease traffic on these routes, thus reducing commute time for residents.

Recall that in April, the state government had shortlisted about 10 firms out of the 32 that expressed interest in the construction of the fourth mainland bridge. The bridge was estimated to be worth about N844 billion.

According to Engr. Adeyoye, the 10km long Lekki regional road will span “Victoria Garden City Scheme 1, connect VGC, Ikate Elegushi, Ikota, Chevron Drive, Ajiran, Pinnock Beach Estate, Gracefield Island and Orange Island, up to Freedom Road to Freedom Way at Lekki”

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Upon completion, this road will greatly ease traffic along the axis, serving as an alternative to the Lekki-Epe Expressway, which is already congested and is currently the only road serving the Lekki sub-region which connects directly to the Osborne/Third Mainland bridge corridor, Adeyoye assured.

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(READ MORE: LIRS further extends deadline for filing annual tax returns by one month)

More projects to come

Adeyoye noted that there are other ongoing projects such Agege-Pen Cinema, Agric-Ishawo Road and the Lagos-Badagry Expressway, as well as the infrastructural upgrade of Oniru network of roads, namely Muri-Okunola Extension, Ligali Ayorinde and Akin Olugbade, along with seven major junctions in Iru-Victoria Island Local Council Development Area.

Completed projects listed by Engineer Adeyoye include Iworo-Ajido and Epeme Roads phases 1 and 2, and the 6.65km two-lane single carriageway with a 300m bridge of 9m width, which was constructed by CCECC.

 

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