A new fund established by the African Export-Import Bank (Afreximbank) has announced its commitment to investing in the Kenyan market, with a particular focus on small and medium-sized enterprises (SMEs).
The Fund for Export Development in Africa (FEDA) will provide equity and related assistance to Kenyan companies, with the goal of promoting industrialization and value-add export development.
Afreximbank President Benedict Oramah revealed on April 9 that investment projects were already being planned for Kenya. These projects will be implemented after Kenya, Chad, and Congo sign agreements with the bank.
The accession of these countries to the FEDA Establishment Agreement is a significant step towards catalyzing more investment by FEDA to promote industrialization and value-add export development in these countries.
“We are delighted to onboard these new member countries and we look forward to mobilizing other Afreximbank member states in due time to support FEDA’s pan-African expansion,” Oramah stated.
According to Oramah, the Fund will enhance opportunities for Kenyan companies to increase their equity and promote industrialization in the market.
This will help create more jobs, generate more income for Kenyans, and promote economic growth in the country.
Kenya’s Treasury Cabinet Secretary Njuguna Ndung’u recently engaged with pan-Africa lenders to assess the country’s needs, discuss proposed projects, and fill information gaps under the Kenya country program.
Ndung’u noted that the government was facing a difficult choice between settling the debt situation and financing the salaries of government officials.
“The national government is caught between two extremes; high level of debt financing and financing constraints due to limited access to finance in the domestic and international financial market,” he stated.
Reports indicate that government staff working in ministries and departments are yet to receive their March salaries due to a cash crunch.
This has led to frustration among workers, and some Members of Parliament, including National Assembly Minority leader Opiyo Wandayi, have spoken out about the salary delays.
However, the announcement of FEDA’s commitment to investing in the Kenyan market could be a ray of hope for Kenyan SMEs struggling to secure financing.
By providing equity and related assistance, FEDA will help these businesses grow, generate more income, and promote economic growth in the country.
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