Business
THE Dutch Entrepreneurial Development Bank FMO in collaboration with the European Union (EU), has signed a 25 million dollar Nasira Guarantee Agreement with First City Monument Bank (FCMB) to boost funding for excluded entrepreneurs in Nigeria.
The News Agency of Nigeria (NAN),reports that Nasira is an automated loan portfolio guarantee programme that takes up a large part of credit risks for entrepreneurs introduced by FMO in partnership with EU in 2020.
Ms Myriam Ferran, Deputy Director General, Directorate of International Partnerships (INTPA), European Commission, disclosed this during the signing ceremony on the sidelines of the 9th Nigeria EU Business Forum.
According to Ferran,the guarantee will enable FCMB to expand its funding to agricultural, youth, and women-owned small and meduim enterprises without requiring collateral, targeting a client group typically deemed too risky by banks.
““We are very happy to see that the EU investment instruments, such as the European Fund for Sustainable Development (EFSD+) guarantees, have come to Nigeria .
“It plays a catalytic role in leveraging private sector investments for the benefit of the real sector, economic diversification and employment creation, especially for youth and women.”
Ferran said, funded by the European Commission, NASIRA is one of FMO’s most innovative programs, encouraging local banks to extend their funding to small entrepreneurs without collateral.
“Often, the FMO guarantee that effectively replaces the collateral is not fully utilised, demonstrating that these entrepreneurs, primarily women and young people, are not riskier than others.
“Job creation in Nigeria, home to 220 million people and the largest population in Africa, is critical.
“The country faces severe economic challenges, including high unemployment .
” Providing small loans to typically high-risk groups will enable them to start and expand their businesses, offering a means of income for themselves and their families,” she said.
Ferran disclosed that, in addition to the 25 million dollar Nasira guarantee, FMO would support FCMB with a syndicated loan of USD 60 million; USD 20 million through FMO.
She said it FCMB would also get USD 30 million through the European Financing Platform on behalf of BIO, DEG, EIB, FINNFUND, Proparco, and SWEDFUND, and USD 10 million through FMO Investment Management.
She said that the loan is dedicated to growing the existing FCMB loan portfolio of small and medium-sized entrepreneurs (SMEs).
She said that the transaction also contained a technical assistance (TA) program.
Ferran said that through the TA initiative, FCMB and FMO would select and support 15 scalable early-stage agri-tech businesses in Nigeria.
She said that together, FMO and FCMB would identify 15 disruptive business models that addressed pressing problems in the agricultural sector, contributing to SDG2: zero hunger and food security.
In a related development;the European Union and Eurocham Nigeria (The European Business Chamber) signed a 300,000 Euro grant agreement to support further development of the Chamber.
According to Ferran, the significant financial contribution underscores the EU’s commitment to fostering strong economic and commercial ties with Nigeria.
She said that the grant aimed to enhance Eurocham’s capacity to serve its members better, promote European business interests in Nigeria, and contribute to the overall mutual economic growth and development.
Mr Yomi Onifade ,Chief Executive Officer(CEO) of Allianz Nigeria and Mr Frederik Klinke, CEO of APM Terminals, Vice Presidents of Eurocham Nigeria, who were present at the signing of the grant agreement, expressed gratitude for the continued support from the EU Delegation.
They said that the funds would be allocated to various developmental projects, including capacity-building programs, member services enhancement, and initiatives aimed at improving the business climate in Nigeria.
NAN
A.I
July 03, 2024 @ 05:56 GMT|
Tags: Mr Yomi Onifade Mr Frederik Klinke Ms Myriam Ferran
