PROGRAMME OBJECTIVES

The overall objective of the programme is to:

  • Promote job creation in the M/SME sector
  • Maximize the development impact of M/SMEs through enhanced access to funding
  • Stimulate and strengthen the capacity of the financial banking sector to finance private sector companies

EIB offers long-term financing in the foreign/local currency to private sector enterprises through approved partner financial intermediaries: The programme aims to provide long-term financing in the foreign/local currency to private sector enterprises located in the Southern African region via the provision of loan facilities. The financing is to be distributed through the approved partner financial intermediaries within the time frame envisaged under each EIB finance loan contract and in accordance with EIB guidelines and lending criteria.

Impart best industry practice: The EIB Technical Assistance (TA) aims to impart best industry practice in the areas related to micro enterprise & SME lending, project finance, credit risk management, loan portfolio management, product development, and treasury product management to the financial intermediary.

For each approved financial intermediary, a tailor made capacity building TA programme has been established and is being implemented. The TA aims to support utilisation of the EIB loan facility, and focuses on the core business area of M/SME lending: e.g. credit risk management, portfolio management, exchange rate risk and interest rate risk management.

TA is delivered via a multi-channel approach including training, on-the-job training, seminars, development of management information systems and tools, customization of software packages, etc.

Boosting job creation in Southern Africa! The EIB wants to boost the entrepreneurial power of young people in Southern Africa. EIB provides more than just finance! Under this programme, the EIB support will be amplified by the delivery of technical support in business development including trainings, events and workshops.