NCBA Group Secures $50 Million Loan from Proparco for SMEs and Green Financing
NCBA Group, a prominent financial institution, has acquired a USD 50 million (Sh6.73 billion) loan from Proparco, a French development finance institution. The funds are designated for on-lending to small and medium-sized enterprises (SMEs) and businesses committed to combating climate change.
Allocation of Funds
NCBA plans to allocate 60% of the loan to SMEs, aiming to bolster their growth and development. The remaining 40% will be directed towards businesses actively engaged in initiatives to combat climate change risks, demonstrating NCBA’s commitment to environmental sustainability.
Impact on SMEs and Climate Change Initiatives
John Gachora, CEO of NCBA, emphasized that the long-term financing aligns with the lender’s sustainability agenda. Specifically, it aims to mobilize funds for green financing initiatives and increase lending to women and youth entrepreneurs.
Beneficiaries and PartnershipsAudrey Maignan, East Africa head of Proparco, highlighted that the funding will benefit approximately 1,600 SMEs, supporting NCBA’s objective of expanding its lending portfolio to small businesses and women-led entities. Proparco, a subsidiary of Agence Française de Développement (AFD) Group, focuses on private sector development, fostering partnerships to drive economic growth and sustainability.
Previous Collaborations
NCBA has a history of collaboration with AFD, having previously secured a €7.8 million (Sh1.14 billion) loan. As of December 2022, the principal balance stood at €5.5 million (Sh804 million), indicating a successful partnership aimed at advancing financial inclusion and sustainable development.