Afreximbank issues $25mn facility to Woodhall Capital for Nigeria SMEs
The African Export-Import Bank has provided a 25-million-dollar lending facility to SMEs in Nigeria through Woodhall Capital under its Export SME development financing. In a chat with CNBC Africa, Oluranti Doherty, the Managing Director of export Development at the bank, says the bank plans to reach an asset disbursement of over $600 million by 2026.
Thu, 31 Oct 2024 12:13:40 GMT
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AI Generated Summary
- Afrexim Bank partners with Woodhall Capital to provide $25 million financing facility for export-oriented SMEs in Nigeria, combining financial and non-financial support.
- Initiative aimed at promoting intra-Africa trade, industrialization, and leveraging the AfCFTA market potential, emphasizing the transition of SMEs into regional exporters.
- Program structured with competitive financing terms and a focus on scalability, with plans to disburse over $600 million by 2026 and expand support beyond current facility.
The African Export-Import Bank has taken a significant step in advancing support for small and medium-sized enterprises (SMEs) in Nigeria by providing a $25 million lending facility through Woodhall Capital under its Export SME development financing program. This move aims to boost the export capabilities of SMEs in Nigeria and strengthen their presence in regional and international markets. In an exclusive interview with CNBC Africa, Oluranti Doherty, the Managing Director of Export Development at the bank, shared insights on the strategic direction and impact of this initiative.
Doherty highlighted that the partnership with Woodhall Capital will focus on identifying and funding key export-oriented businesses in Nigeria. The collaboration will extend beyond financial support, incorporating capacity building initiatives for both the SME beneficiaries and Woodhall Capital, enhancing operational efficacy and market competitiveness. This comprehensive approach sets the program apart by combining financial assistance with non-financial interventions to foster sustainable growth and resilience among SMEs.
The decision to target export-oriented SMEs aligns with Afrexim Bank's core mandate to promote intra- and extra-Africa trade, facilitate industrialization, and drive export development. By nurturing SMEs to transition from local to regional exporters, the initiative aims to leverage the opportunities presented by the African Continental Free Trade Area (AfCFTA) and the $3 trillion market it offers across the continent.
Moreover, as the bank positions itself to disburse assets exceeding $600 million by 2026, Doherty emphasized the ongoing commitment to supporting SMEs beyond the current facility with Woodhall Capital. The broader strategy includes collaborations with various financial intermediaries in Nigeria to reach a wider spectrum of SMEs in need of financial backing.
In response to queries on interest rates and repayment terms, Doherty assured that the financing lines provided to intermediaries like Woodhall Capital are structured competitively with flexible tenors tailored to meet the diverse needs of SMEs. Whether for working capital or capital expenditure, the program offers a range of options to facilitate SME growth and expansion.
Looking ahead, Doherty underscored the bank's readiness to expand its support beyond the $25 million facility, citing previous disbursements totaling over $200 million to financial institutions in Nigeria. This collective effort signifies a broader commitment to bolstering the SME sector and driving economic development in the region. With a keen focus on scalability and impact, Afrexim Bank remains dedicated to empowering SMEs and fostering a vibrant ecosystem for sustainable business growth.
In conclusion, the collaboration between Afrexim Bank and Woodhall Capital stands as a testament to fostering inclusive economic growth and building resilient SMEs capable of competing in the global market. By combining financial backing with tailored support services, the initiative not only injects vital funding into the SME landscape but also equips businesses with the necessary tools to thrive in an increasingly competitive business environment.