Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Ecobank signs Sh2b loan with Proparco

NAIROBI, Kenya Dec 8 – Ecobank Kenya has signed a $15 million (Sh2 billion) loan agreement with Proparco, a subsidiary of the French development agency to finance private sector development.

The move aims at securing long term financing for lending to its customers.

Ecobank Kenya Managing Director Tony Okpanachi says the deal gives the bank flexibility and the capability to reach out to the small and medium enterprise sector as a new segment for the bank.

"Most banks have short term funds and when you want long term transactions they have issues. Now Ecobank Kenya is well positioned to be able to take some of those transactions both in the SME and deserving corporate," Mr Okpanachi said.

The partnership is aimed at boosting private investment in emerging and developing countries in favour of growth, sustainable development and reaching the millennium development goals.

"Through such partnerships Ecobank hopes to increase financial support to different organisations and enterprises thus amplifying development in Africa," he said.

Proparco East and Central Africa Regional Representative Ghislain de Valon said the firm plans to continue making similar partnerships in the region to boost economic growth.

"We are very keen in ensuring that Africa benefits through financing projects that will enhance the people\’s lifestyle both economically and socially," Mr de Valon said.

Proparco has been involved in financing different projects across Africa including telecommunications, financial, education, agriculture and energy.

Advertisement. Scroll to continue reading.

Ecobank is also leading in a consortium to provide Sh1.6 billion medium term financing to Mumias Sugar Company for a new Ethanol plant to be commissioned in 2011.

At the same time, Mr Okpanachi revealed the bank plans to consolidate its operations going into 2011 rather than focus on expansion.

He said the bank would instead look at emerging opportunities such as SME financing as a way of growing its business in the country.

"The massive expansion you saw over the last one year is not going to be the case in 2011. We are looking at new opportunities we can explore within Kenya," he said.

The bank however plans to have 23 branches by the end of 2011, up from its current 19 branches.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...