NCBA Secures USD 50 M From Proparco For SMEs & Green Financing
NCBA Group has tapped a USD 50 M (Sh6.73 billion) loan from French development finance institution Proparco for on-lending to small and medium-sized enterprises (SMEs) and those whose activities help combat climate change. The lender says that 60% of the money will go to SMEs while 40% will be directed to businesses committed to combating climate change risks.
NCBA’s chief executive John Gachora said the long-term financing fits into the lender’s sustainability agenda that among others seeks to mobilize money towards green financing and grow loans to women and youth. East Africa head of Proparco, Audrey Maignan, said the funding will benefit at least 1,600 SMEs, aligning with NCBA’s goal of expanding its lending to small businesses and women-led entities.
Proparco is a subsidiary of Agence Française de Développement (AFD) Group, a French development agency that is focused on private sector development. NCBA had a €7.8 million (Sh1.14 billion) loan from AFD, with a €5.5 million (Sh804 million) principal balance at the end of December 2022.
