The Board of Governors of the African Development Bank Group (AfDB) through its private sector window approved in June 2014 a €2.5 million line of credit (LoC) equivalent in local currency 1.640 billion CFA francs) to Fidelis Finance (Formerly 'Burkina Bail Ltd.).
Fidelis Finance is the leader in the leasing market in Burkina Faso with a market share estimated at 60%, with strong focus on SMEs. Fidelis Finance served a total of 1,137 clients over the past five years and reached 348 clients during 2013 through operating lease and finance lease products.
The proposed LoC will support SME sub-projects and these are well-diversified spanning all economic sectors including manufacturing, commerce/trade, services, construction, agriculture and transport, etc. Economic benefits likely to accrue from the 70 to 100 SMEs to be financed under this facility and these SMEs currently have approximately 1,500 employees and are going to add 350 to 500 direct additional jobs during the project period. In addition, the sub-projects will contribute to Government revenues in the form of value-added, income and corporation taxes.
Fidelis Finance is part the AfDB's Africa SME Program to develop and expand its SME financing activities and provide medium- to long-term financing options to local SMEs in Burkina Faso.
Approved by the AfDB's Board of Directors in July 2013, the Africa Small and Medium Enterprises (SME) Program is a four-year, US $125-million funding program combined with a US $3.98-million technical assistance package granted by the Fund for African Private Sector Assistance (FAPA), which aims to supporting micro, small and medium enterprises (MSMEs) in Africa. SME Program will provide the necessary longer term finance and a technical assistance package to address a number of constraints faced by around 25 target financial institutions and their SME clients across Africa.
Fidelis will also benefit from FAPA technical assistance supported by the governments of Japan and Austria.
Throughout its ongoing process, the SME Program will avail further longer-term resources to thousands of SMEs, including women and youth, thus contributing to job creation, poverty reduction and inclusive growth on the continent.
About the Fund for African Private Sector Assistance
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 the 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.
The Board of Governors of the African Development Bank Group (AfDB) through its private sector window approved in June 2014 a €2.5 million line of credit (LoC) equivalent in local currency 1.640 billion CFA francs) to Fidelis Finance (Formerly 'Burkina Bail Ltd.).
Fidelis Finance is the leader in the leasing market in Burkina Faso with a market share estimated at 60%, with strong focus on SMEs. Fidelis Finance served a total of 1,137 clients over the past five years and reached 348 clients during 2013 through operating lease and finance lease products.
The proposed LoC will support SME sub-projects and these are well-diversified spanning all economic sectors including manufacturing, commerce/trade, services, construction, agriculture and transport, etc. Economic benefits likely to accrue from the 70 to 100 SMEs to be financed under this facility and these SMEs currently have approximately 1,500 employees and are going to add 350 to 500 direct additional jobs during the project period. In addition, the sub-projects will contribute to Government revenues in the form of value-added, income and corporation taxes.
Fidelis Finance is part the AfDB's Africa SME Program to develop and expand its SME financing activities and provide medium- to long-term financing options to local SMEs in Burkina Faso.
Approved by the AfDB's Board of Directors in July 2013, the Africa Small and Medium Enterprises (SME) Program is a four-year, US $125-million funding program combined with a US $3.98-million technical assistance package granted by the Fund for African Private Sector Assistance (FAPA), which aims to supporting micro, small and medium enterprises (MSMEs) in Africa. SME Program will provide the necessary longer term finance and a technical assistance package to address a number of constraints faced by around 25 target financial institutions and their SME clients across Africa.
Fidelis will also benefit from FAPA technical assistance supported by the governments of Japan and Austria.
Throughout its ongoing process, the SME Program will avail further longer-term resources to thousands of SMEs, including women and youth, thus contributing to job creation, poverty reduction and inclusive growth on the continent.
SOURCE African Development Bank (AfDB)
