(Ecofin Agency) - Ecobank secured Wednesday a €100 million ($112 million) credit facility from the European Investment Bank (EIB). The long-term financing, with a 9-year tenor, will be on-lent through the group's subsidiaries to SMEs in sub-Saharan Africa.

The cooperation with Ecobank “will help companies to better tackle challenges triggered by the Covid-19 pandemic, unlock economic and social opportunities, especially for SMEs and women-owned and women-run enterprises across sub-Saharan Africa,” said Ambroise Fayolle, EIB Vice-President.

As a reminder, Ecobank's Malawi subsidiary received a €12.5 million loan from EIB in May this year. The resource, which was complemented by a European Union (EU)-financed risk-sharing facility, was aimed at financing SMEs in the agribusiness sector.

In a note to investors in July, Ecobank said that the West African Economic and Monetary Union (WAEMU) remains its largest market in terms of total loans granted to companies and individuals. Nigeria, Central, Eastern and Southern Africa (CESA) and Anglophone West Africa (AWA) complete the list.  The sectors benefiting the most from loans are services (14% of total loans), manufacturing (12%) and retail (12%).

The pan-African bank intends to strengthen its loan portfolio for private sector enterprises in the 33 countries it operates. The group has also requested a guarantee from the EIB to cover loans of €95 million granted to SMEs. The operation will be financed indirectly by the EU Sustainable Development Fund.

Chamberline Moko