The Bank of Industry (BoI) has secured a $50 million loan portfolio from the African Guarantee Fund (AGF) to empower women entrepreneurs and drive economic growth in Nigeria.

This innovative guarantee framework agreement is backed by the African Development Bank’s (AfDB) Affirmative Finance Action for Women in Africa (AFAWA) initiative.

The loan, which will be disbursed over a 10-year period, is expected to scale up BoI’s lending to Small and Medium Enterprises (SMEs) in the country, with a focus on women-owned businesses and environmentally sustainable enterprises.

Olasupo Olusi, managing director and chief executive officer of BOI, spoke on the sidelines of the Africa Investment Forum, Market Days 2024, which ends on Friday in Rabat, Morocco.

Mr Olusi said the partnership would propel Nigeria’s industrial sector by providing financial and business support services to enterprises.

“Today, we signify a collaboration that promises to drive inclusive growth, innovation, and sustainable development,” he said.

The AGF will also provide tailored guarantees and technical assistance toward special SME products offered by BOI, targeting women, youth and green businesses.

This agreement is expected to unlock up to $100 million in financing for SMEs in Nigeria.

According to Mr Olusi, the partnership is a significant step towards promoting economic growth and reducing unemployment in Nigeria.

He said it also aligned with the Renewed Hope agenda of President Bola Tinubu’s administration.

The African Development Bank’s Vice President, Agriculture, Human and Social Development, Beth Dunford, emphasised the bank’s commitment to empowering women entrepreneurs and fostering economic growth in Nigeria.

“This strategic partnership is a beacon of hope and progress for African businesses, particularly those led and owned by women,” she said.

NAN)