MICROCAPITAL BRIEF: EIB Lends Ecobank Group $113m for SMEs in Africa, with Emphases on Women, Adjusting to COVID-19

The Togo-based Ecobank Group recently received a 9-year credit facility of EUR 100 million (USD 113 million) from the EU’s European Investment Bank (EIB). The purpose is to help develop the small and medium-sized enterprise (SME) sector, with a particular emphasis on the businesses that have been “most impacted by the COVID-19 pandemic.” To support the loan, the EIB-funded African Women Rising Initiative will provide technical assistance including “training and capacity building for lending to women entrepreneurs.”

Launched in 1988, Ecobank operates approximately 1,100 branches in 33 African countries, employing 14,000 people and serving 29 million clients. It offers personal, commercial and corporate banking services, ranging from deposit accounts to asset management. As of 2020, Ecobank reported total assets of USD 25.9 billion.

EIB, founded in 1958, is “focused on innovation, SMEs, infrastructure and climate,” primarily in EU member states and potential future member states. In addition to funding, the institution assists its clients “in project implementation and the modernization of public policies [via] technical and financial expertise and advisory services.” As of December 2020, its total assets amounted to EUR 554 billion (USD 675 billion) with disbursements during the preceding year totaling EUR 58 billion (USD 71 billion).

By Adhya Singh, Research Associate

Sources and Additional Resources

EIB press release
https://www.eib.org/en/press/all/2021-420-le-groupe-ecobank-obtient-une-facilite-de-credit-de-100-millions-d-euros-pour-financer-des-pme

Ecobank Group webpage
https://ecobank.com/group

Ecobank 2020 annual report
https://ecobank.com/upload/publication/20210505103734741MARWXFC4UQ/20210712013815611e.pdf

EIB homepage
https://www.eib.org/

EIB 2020 financial report
https://www.eib.org/en/publications/financial-report-2020

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