AfDB SME Program - Enhancing Inclusive Growth and Job Creation in Burkina Faso

30 July 2015
Content from a Premium Partner
African Development Bank (Abidjan)
press release

The African Development Bank Group (AfDB) and Fidelis Finance signed on 30 July 2015 a loan agreement for the equivalent of EUR 2.5 million under the Africa SME Program on July 30, 2015 to support SMEs in Burkina Faso.

Fidelis Finance S.A. is one of the Burkina Faso's fastest-growing leasing companies with a strong focus on SMEs. Fidelis Finance offers a wide range of products including operating lease, finance lease, factoring, medium-term loans and short-term credits for SMEs in Burkina Faso. The Line of Credit (LOC) with an amount of EUR 2.5 million will support SME projects in economic sectors such as trade, retail, transport and construction etc.

The Africa Small and Medium Enterprises (SME) Program was approved by the AfDB's Board of Directors in July 2013. It is a four-year program with US $125 million. Under this program, US $3.98 million technical assistance package was granted by the Fund for African Private Sector Assistance (FAPA) under EPSA (Enhanced Private Sector Assistance for Africa) initiative, which aims to supporting micro, small and medium enterprises (MSMEs) in Africa. The Africa SME Program will provide not only the necessary longer term finance, but also a technical assistance package to address a number of constraints faced by approximately 25 target financial institutions and their SME clients across Africa.

About the Fund for African Private Sector Assistance (FAPA)

The Fund for African Private Sector Assistance (FAPA) is a multi-donor thematic trust fund that provides grant funding for technical assistance and capacity building to support implementation of the Bank's Private Sector Development Strategy. The Government of Japan, African Development Bank, the Austrian Development Bank and the Government of Austria are contributors to the fund, which to date has provided US $42 million to 47 projects across the African continent. The FAPA portfolio includes regional and national projects in sectors such as Business Enabling Environment, Financial Intermediation, Infrastructure, Trade and Micro, Small and Medium Enterprises.

About Fidelis Finance

Fidelis Finance SA is a financial institution listed on the list of Credit Institutions of the West African Monetary Union (WAMU). Fidelis Finance is specialized in leasing, factoring and credit operations to companies. Its shareholder capital amounts to F CFA 4,593 million ($ 8.4 million) consisting of investment funds (37%), regional development banks and a guarantee fund (45%), insurance companies (10%) and other investors (8%). Cumulative outstanding loans of Fidelis Finance to SMEs amount to F CFA 56,758 million ($ 103.2 million) to finance 1,783 projects over the past ten years. Fidelis Finance is also present in Ivory Coast.

Read the original article on African Development Bank (AfDB).

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