AfDB approves $50 million to FCMB for local, women-owned businesses in Nigeria
The Board of Directors of the African Development Bank (AfDB) have approved a loan of $50 million to Nigeria’s First City Monument Bank (FCMB) to channel to local enterprises and women-empowered businesses in the agribusiness, manufacturing, healthcare and renewable energy sectors.
The disclosure is contained in a public statement titled, ’African Development Bank bolsters women-empowered businesses with $50 million loan to FCMB bank’ issued by AfDB .
The statement says that 30% of the funds, which are intended to mitigate the effects of the challenging Covid-19 environment, are earmarked for underserved women-empowered businesses.
It also adds that the Bank will provide a technical assistance grant of $200,000 through its Affirmative Finance Action for Women in Africa (AFAWA) initiative supported by the Women Entrepreneurship Finance Initiative. The grant is expected to complement the loan by enabling First City Monument Bank to provide non-financial services, including training, and to strengthen its monitoring and reporting functions.
What you should know
FCMB is a Nigerian commercial bank with around 5 million customers. It had total assets of around $5 billion at the end of 2020.
The project aligns with the objectives of AFAWA, which aims to improve gender inclusivity by improving access to finance for women entrepreneurs. The project also advances the Bank’s Ten-Year Strategy and is consistent with three of its High-5 strategic priorities: Industrialize Africa, Feed Africa, and Improve the Quality of Life for the People of Africa. It also aligns with the Nigeria Country Strategy Paper 2020-2024.
The African Development Bank is an implementing partner of the Women Entrepreneurs Finance Initiative, a groundbreaking partnership housed in the World Bank Group that aims to unlock financing for women-led businesses in developing countries.
