EIB and TDB launch pioneering 12-year EUR 81.5 million financing initiative to support private sector investments in fragile contexts in East and Southern Africa

·Targeted funding to support people and communities affected by COVID-19, climate change and social exclusion

· Business finance to support businesses that support women, youth, MSMEs, among others

Access to finance for entrepreneurs and businesses impacting people in fragile situations across Africa will be enhanced by a new 12-year € 81.5 million initiative launched by the European Investment Bank (EIB) and the East and Southern Africa Trade and Development Bank (TDB), which is expected to release 163 million euros of investment. This is the very first EIB facility to be specifically dedicated to supporting the private sector in fragile contexts. The Facility will focus on removing barriers to accessing finance for socially excluded people and communities.

This new initiative for investing in fragile contexts was officially launched in Nairobi earlier today by Werner Hoyer, President of the European Investment Bank, and Admassu Tadesse, Chairman Emeritus of TDB and CEO of the group before the official opening of the EIB’s new hub in Nairobi.

The initiative will catalyze investments that improve financial and social inclusion and is expected to support entrepreneurs in remote areas, women-led and youth-led start-ups, among other groups with limited access to finance. Private sector investments in the sectors most affected by the COVID-19 pandemic will also be supported by this new funding program.

“Ensuring that entrepreneurs and communities across Africa can access finance is essential to tackle social exclusion and the impact of climate change. The EIB works closely with major financial institutions across Africa to unlock targeted high impact finance. We are pleased to strengthen our long-standing cooperation with our multilateral partner TDB to develop and launch today this pioneering funding to support people in situations of fragility in East and Southern Africa. noted Werner Hoyer, President of the European Investment Bank.

Admassu Tadesse, Chairman Emeritus of TDB and Group Chief Executive Officer noted: “We are delighted to deepen our partnership with the EIB, one of the Bank’s strategic partners in the region with whom we are working closely to advance the achievement of the SDGs, the Paris Agreement and the Agenda 2063. The TDB and the EIB have been strengthening their cooperation since 2014 to finance critical projects fighting against climate action and SMEs, with a view to fostering sustainable growth in our region. This new facility for businesses in fragile contexts will allow TDB to further extend its reach to enable those who need it most to participate in the economy on a sustainable basis.

“Providing targeted finance in fragile regions is essential to prevent social exclusion and to open up opportunities that stimulate economic growth. This new cooperation between the EIB and TDB to concentrate financing in fragile regions is a model of investment with high impact in the world. noted Thomas Östros, Vice-President of the European Investment Bank in charge of Eastern and Southern Africa and Development.

Abraham Byanyima, TDB Group Treasury Director noted: “TDB’s funding base is increasingly made up of triple bottom line capital seeking to strengthen their resilience to the environmental, social and economic challenges of our pioneer economies. Through this EIB financing initiative, the first of its kind, TDB and EIB hope to strengthen their support to MSMEs, women, youth, those disproportionately affected by poverty in rural areas. or urban slums, communities without access to electricity, among others.

The relationship of TDB and EIB is multifaceted, with now three lines of credit beyond deployed to advance sustainable development in the TDB region, various technical assistance programs and an East African forum on banking. and microfinance organized by partners every year since 2018.

EIB President Werner Hoyer and Vice President Thomas Östros are spending four days in Kenya to meet with political, business and financial leaders during their first official visit to Africa since the pandemic. The European Investment Bank is the largest international public bank in the world and last year provided more than 5 billion euros for new investments across Africa.