COVID-19: AfDB approves US$40mn package to support SMEs
As the pandemic continues to spread within Africa — totalling 35,371 cases — AfDB has approved a US$40mn package to support Angola’ SMEs.
In support of Angola’s Banco Millennium Atlantico (BMA), the African Development Bank (AfDB) has approved a US$40mn financial package to bolster local production and job creation via its portfolio of small and medium sized enterprises (SMEs).
Breakdown of the package
Breaking down the total US$40mn, US$32mn of the credit will be from the African Development Bank, with an additional US$8mn will come from the African Growing Together Fund (AGFT) — a co-financing fund sponsored by the People’s Bank of China, and administered by the African Development Bank.
The package will provide the BMA long-term financing required to support the expansion needs of small and medium sized enterprises that are growth oriented, focusing on those particularly in the agricultural sector, agro-industry and domestic manufacturing sector.
In addition to its response to the COVID-19 pandemic and the collapse of oil prices, the package will also help to facilitate the creation of direct and indirect jobs. As well as contribute to critically needed foreign exchange savings via import substitutions and lay a foundation to boost exports to neighbouring countries.
By fostering local production and stimulating job creation via a diverse pipeline of projects, the fund package will contribute to facilitating Angola’s effort to achieve inclusive and sustainable growth, as well as diversifying the economy in that country that is currently heavily reliant on oil exports for revenue.
The announcement of the US$40mn package, follows the bank’s recent establishment of a ‘fight COVID-19 social bond’. The bond was established to combat the economic and social impact of COVID-19 in Africa.
To read more about the African Development Bank’s ‘fight COVID-19 social bond’, click here!
About BMA
BMA is one of the largest commercial banks in Angola. The organisation is a leader in financing domestic firms — particularly SMEs. Its headquarters can be found in the capital city — Luanda — and was established in 2016.
SEE ALSO:
- Oil and Gas: how the sector will recover post COVID-19
- COVID-19: embedding growth from within Africa
- Absa Group: the impact of COVID-19 on South Africa’s economy
- Read the latest issue of Business Chief, EMEA edition, here
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