An Arab bank dedicated to supporting economic development in African countries has opened a Sh15 million line of credit with HFC, the property finance and banking subsidiary of the HF group. The money aims to help boost the Small and Medium Enterprises (SMEs) sector.
The credit line with HFC is part of the Arab Bank for Economic Development in Africa’s programme. The programme is aimed at financing the operations of the private sector for instance in the African countries. The credit line was seen to take course effectively on Tuesday in Nairobi.
The credit line is expected to meet the strategic initiative of HFC. The initiative is aimed at the Small and Medium Enterprises as well as the retail banking segment.
“We are honoured to receive this facility from the Arab Bank for Economic Development in Africa, which affirms our position as a development partner of choice for the SME and corporate sector,” said Sam Waweru (HFC managing director).
According to managing director of HFC, the credit line will be very supportive since it will support HFC’s growth. In a nutshell, it will help the expansion of the bank’s SME customer base as well as be financing the working capital.
The Arab Bank for Economic Development in Africa is known to be an independent financial institution. The institution is usually owned by 18 Arab countries. The 18 Arab countries are said to be members of the League of the Arab States which are obliged to providing funding aimed at fostering projects of economic development, particularly in African countries.
The credit line is significant since, by the closure of business, the lending from the HFC may help in the creation of employment opportunities in the SME’s and as a result resulting to development and improvement in the people’s way of living.