$1billion coming for Nigeria, others to SMEs

Three organisations, Norfund, Netherlands Development Bank (FMO) and Rabobank, have set aside $1billion to lift the small and medium enterprises (SMEs) food sector in Nigeria and other African countries.

Another firm, Banco Montepio, a financial group based in Portugal with banking investments in Africa, is also expected to join the partnership. The aim is to promote continental economic growth.

The firms have resolved to start a new company, to be named Arise. The company will start in over 20 countries, a $660 million in assets and it is expected to grow to $1 billion. Arise will take and manage minority stakes in African FSPs.

Through Arise, the partners will continue to adequately support the growth and development of the FSPs by providing among others, technical assistance and management services in the field of governance, management, marketing, innovation, compliance and risk management.

Capital will also be allocated for new investments. Arise will be operational from January 1 next year.

Source: SME Digest

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