|Approval Date||25 Jan 2017|
|Signature Date||06 Oct 2017|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The present project consists of a financial package of US $ 90 million for Commercial Bank of Africa (CBA). This envelope consists of: (i) a US $ 50 million line of credit (LOC) with a 7-year maturity (including a 2-year grace period); and (ii) a US $ 40 million trade finance credit line (LOC-CF) with a 3.5-year term. The LOC will be used, among other things, to finance small and medium-sized enterprises (SMEs) and small sub-projects in the energy infrastructure sector; while the CFL-LDC will support CBA's trade finance activities in various sectors, including trade in petroleum products, crude steel, machinery, plant and equipment and agricultural products. The project is expected to have positive effects on inclusive growth in view of the available information on the positive impacts that have resulted from CBA's current portfolio and the new strategic directions towards increased support for the underdeveloped SME sector.
The objective of the project is to contribute to reducing the financing constraints of local businesses and SMEs in Kenya. This would reduce Africa's trade finance gap, foster private sector growth, and to bring broad-based economic growth through job creation, intra-African trade development, regional integration and improved household incomes.
The direct beneficiary of the project is the Commercial Bank of Africa (CBA). In addition, some 1,412 permanent jobs will have to be created at the level of the sub-projects benefiting from the LOC, outside the 761 temporary jobs (in principle equivalent to 381 full-time jobs).
African Development Bank
|Last Update||31 Oct 2019|