(Ecofin Agency) – Oikocredit strengthens its partnership with AfricInvest Private Credit. The Dutch institution financially supports the growth of African SMEs.
The Dutch social investor Oikocredit announced on Wednesday June 12, 2024, the granting of a first loan of 9.3 million euros ($10 million) to AfricInvest Private Credit (APC). This debt vehicle managed by AfricInvest will use the funds to increase its credit activities and diversify its portfolio of small and medium-sized enterprises (SMEs) in several African countries.
APC will offer medium and long-term credit, mainly to businesses poorly served by traditional financial institutions. These solutions will be complemented by capacity building programs.
“This facility will help us continue to serve underserved people in Africa, expanding the target market and reach of AfricInvest Private Credit. Thanks to this capital injection, we will have the opportunity to increase our impact in terms of economic growth and inclusion”, underlined Kouraiech Belhajali (photo), director general of APC. Note that this agreement strengthens the long-standing partnership between Oikocredit and AfricInvest.
Pillar of African economies, SMEs dominate the African private sector. They represent up to 90% of all businesses, and almost 60% of jobs. However, for many, they suffer from a lack of access to financing estimated at around $331 billion by the International Finance Corporation (IFC), before covid-19. This financing gap very often hinders the growth and survival of these SMEs.
Chamberline Moko
