AFRICA – The social impact investment firm Oikocredit has recently extended a debut loan of US$10 million to AfricInvest Private Credit (APC), with the aim of bolstering small and medium-sized enterprises (SMEs) throughout the African continent.
This collaborative effort is set to broaden the availability of financial resources for SMEs that are typically underserved by conventional lending institutions.
APC is known for its proficiency in providing medium to long-term financing solutions, focusing on businesses that face challenges in obtaining funds from mainstream banks due to insufficient collateral.
With the support of Oikocredit’s investment, APC is poised to enhance its loan distribution capabilities, thereby benefiting an increased number of businesses across different African nations.
Kouraiech Belhajali, the Chief Executive Officer of APC, expressed enthusiasm about the new alliance, stating, “Our partnership with Oikocredit is a significant milestone.”
“The infusion of funds will empower us to further assist the underserved business sector in Africa, broadening our scope and target demographic,” Belhajal added.
“We are committed to leveraging this capital to amplify our contribution to the continent’s economic development, job creation, and progress in financial inclusion.”
Lewis Nyaga, an investment officer at Oikocredit, remarked, “We are excited to unveil this strategic partnership with AfricInvest. The establishment of this vital debt facility is a strategic move aimed at fortifying African SMEs and promoting their sustainable growth.”
In June this year, British International Investment (BII), the UK’s development finance institution and impact investor, sold its 10.1% stake in I&M Group PLC, the Eastern African banking group, to AfricInvest.
The acquisition was made through East Africa Growth Holding, a special-purpose vehicle owned by AfricInvest.
I&M Group has a presence in Kenya, Mauritius, Tanzania, Rwanda and Uganda. It offers financial services to individuals, micro, small and medium-sized enterprises (MSMEs), and corporates across the region.
It is listed on the Nairobi Securities Exchange, and its Rwandan subsidiary, I&M Bank Rwanda, is listed on the Rwanda Stock Exchange.
In alignment with its strategy, AfricInvest will continue championing I&M’s sustainability journey, supporting its commitment to creating lasting, sustainable environmental and social value.
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