<\/p>\n
The Trade Finance Line of Credit will enable Family Bank to provide financing to eligible small and medium-sized enterprises and local companies.<\/p>\n
<\/p>\n
Businesses operating in manufacturing, agriculture, healthcare and renewable energy will be prioritised alongside enterprises owned by women.<\/p>\n
<\/p>\n
The facility will help companies finance imports and purchase equipment, raw materials and other productive inputs required for business operations.<\/p>\n
<\/p>\n
The AfDB said the financing would also help Kenyan companies participate more effectively in domestic, regional and international value chains.<\/p>\n
<\/p>\n
The agreement was signed at AfDB\u2019s East Africa Regional Office on October 2. \u201cA line of credit becomes meaningful only when it becomes a line of opportunity for a business,\u201d AfDB East Africa Director-General Alex Mubiru said.<\/p>\n
<\/p>\n
\u201cThrough Family Bank\u2019s local reach, we expect this facility to support enterprises that are producing, trading, creating jobs and strengthening Kenya\u2019s value chains.\u201d<\/p>\n
<\/p>\n
Trade finance can help businesses address foreign-currency shortages and cash-flow gaps between purchasing supplies and receiving payment for finished goods.<\/p>\n
<\/p>\n
Smaller businesses frequently struggle to secure trade finance because of limited collateral, shorter operating histories and the perceived risks associated with cross-border transactions.<\/p>\n
<\/p>\n
The partnership is expected to use Family Bank\u2019s domestic network and knowledge of the Kenyan market to direct financing towards eligible businesses.<\/p>\n
<\/p>\n
AfDB said the facility would support the diversification of Kenya\u2019s productive capacity by expanding financing beyond established large companies.<\/p>\n
<\/p>\n
Improved access to productive inputs could enable businesses to increase output, create employment and expand into regional markets.<\/p>\n
<\/p>\n
The facility is also intended to increase trade among African countries under the African Continental Free Trade Area.<\/p>\n
<\/p>\n
By supporting businesses involved in production and cross-border commerce, AfDB and Family Bank aim to strengthen regional supply chains and reduce barriers limiting Kenyan participation in continental trade.<\/p>\n
<\/p>\n
The institutions said the value of the facility would ultimately be determined by the number of businesses able to convert the financing into production, trade and employment opportunities.<\/p>\n
<\/p>\n
–AfDB\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":42566,"template":"","meta":{"_acf_changed":false,"_members_access_role":[],"_members_access_error":"","_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-47850","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Kenyan businesses will gain greater access to foreign-currency financing under a $10 million trade finance agreement between the African Development Bank Group (AfDB) and Family Bank Limited.","published_date":"","news_description":"Kenyan businesses will gain greater access to foreign-currency financing under a $10 million trade finance agreement between the African Development Bank Group (AfDB) and Family Bank Limited.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/47850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":2,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/47850\/revisions"}],"predecessor-version":[{"id":47852,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/47850\/revisions\/47852"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/42566"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=47850"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=47850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}