KENYA – Victoria Commercial Bank, a private commercial bank, has announced it has secured a US$20 million line of credit for financing private sector projects from The Arab Bank for Economic Development in Africa (BADEA).
The bank said the new funds will go towards supporting the growth of the Small and Medium Enterprise portfolio.
“This credit line made possible with support and guidance from Nimai Financial Sector Advisory (NFSA), Dubai, UAE, reflects the good standing of VCB and its strong asset base,” said the company’s CEO Yogesh Pattni.
“These funds are designated to enhance the private sector access to capital in Kenya and to play a pivotal role in sustainable economic growth.”
Dr Sidi Ould TAH Director General at BADEA noted, “For us in BADEA, the private sector remains to be the centre of focus of our operations. Because they sustain jobs and improve livelihoods and economic dividends in Africa. Through this partnership with VCB, we aim at increasing the outreach to private sector clients in Kenya.”
Meanwhile in Malawi, the government successfully secured a US$50 million credit from BADEA for fuel purchase and importation, improving the fuel situation in the country.
Malawi has been experiencing a sporadic scarcity of fuel due to what the National Oil Company of Malawi (Nocma) and Malawi Energy Regulatory Authority (Mera) officials say was due to forex scarcity.
This comes just a week after President Dr Lazarus Chakwera assured the nation that the fuel situation would normalise following the line of credit of US$50 million from Badea.
Minister of Finance Sosten Gwengwe said the National Oil Company of Malawi (NOCMA) has secured the credit on behalf of the government of Malawi.
He said the board of Badea has approved that the country can start accessing the funds which are to be used in the importation of fuel into the country.
Gwengwe said this is the amount President Chakwera announced that Malawi will be getting from Badea before his departure to the United States of America where he is attending the United Nations, General Assembly.
The finance minister has also indicated that the government is still discussing with other regional banks to open to Petroleum Importers Limited (PIL) a similar credit line to ensure a stable supply of fuel in the country.
This comes as the fuel situation in the country has tremendously improved.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
