Exim Bank secures $15 million loan from PROPARCO to support SMEs

Exim Bank Board Chairman Yogesh Manek

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Exim Bank secures $15 million loan from PROPARCO to support SMEs

EXIM Bank Tanzania has secured a USD 15 million (about TSH 24.7 billion) loan from PROPARCO, a French international development finance institution.

The financing will be used for onward lending to support Exim Bank’s growing Small and Medium Enterprise (SME) customers and primarily those requiring medium to long-term credit facilities. The mission of PROPARCO is to boost private investment in developing countries with the aim of supporting growth and sustainable development.

The loan to Exim Bank has been extended at very competitive terms and is the fourth time PROPARCO has supported the Exim Bank Group. Exim Tanzania earlier received two successive loans from PROPARCO. Exim Bank Comoros, a subsidiary, was approved Euro 4 million from PROPARCO for SME lending across the chain of islands.

According to a press statement issued by the Chairman of the Board of Exim Bank, Mr Yogesh Manek at the weekend, the loan will go a long way to help to find solutions for the long term credit needs of the bank’s business customers.

“We are quite pleased with the continued confidence reposed by PROPARCO in the Bank. Our customers will surely welcome longer term credit at competitive rate,” Mr Manek said. Mr Manek further stated that his bank is committed to financing the requirements of small, medium and large enterprises to help accelerating economic development in the country.

“Our long-term relationship with PROPARCO and other key Development Finance Institution (FDIs) is built upon the bank’s posting sustained quantifiable achievements.

Since the commencement of Exim Bank in 1997, the bank has shown consistent growth in terms of deposits, assets and geographical reach.” He added. The PROPARCO’s East Africa Regional Representative, Aïnaché Guédi; re-affirmed his organisation’s commitment to help building sustainable local financing capacity across Africa.

“We are very proud to support a strong and dynamic player such as Exim Bank. This new operation is the continuation of a long term partnership between Exim Bank and PROPARCO. It is the sign of our commitment to support its long-term strategy, notably in favour of SMEs which are vital to economic growth and development in Sub-Saharan Africa” he said.

In a similar development, Exim Bank in December 2011 secured a USD 10 (about 16bn/-) loan from FMO, a Dutch Development Finance Institution, that also contributed to the revitalization of the fiscal environment in the country's banking sector.

With its latest results, Exim Bank has consolidated its balance sheet thus enabling the bank to cross the much anticipated trillion milestone with assets of TSH 1.02 trillion at June 2013.