The Africa SME Programme is a 4-year Program. It will seek to identify and process assistance requests to support up to 25 Financial Institutions with a total Programme envelop amount of USD 125 Million.
Financial Institutions may be from any given African country. However, the AfDB's internal country risk rating will be evaluated to assess country risk and thus the derived investment risk to ensure they fall within acceptable levels at any given time. It is expected that a fair number of the financial institutions will be located in lower income countries as well as in fragile states, where access to finance for SMEs is most pressing.
The size of the Lines of Credit is determined based on the size of the balance sheet (equity/tier 1 capital) as well as funding needs for the SME pipeline, but will not be less than 1 M USD or over 10 M USD, or equivalent in local currencies. The Lines of Credit are to be used for on-lending to SME clients.
The depth (and amount) of technical assistance will be considered on a case by case basis. Institutions are expected to co-finance some of the technical assistance. The TA will be provided to the borrowing FIs to enhance their capabilities to provide relevant SME finance products and tenors, and where preferred also to SME clients to enhance bankable loan requests.
One of the benefits of the Program, compared to financing that is normally provided by AfDB to financial institutions, is that financial support under this Programme is provided faster. The due diligence process under this programme is standardized and simplified and the Technical Assistance is readily available to be deployed.
Financial Institutions interested in the Programme can register on this website after which they will be contacted by AfDB staff.