This facility, which will cover a period of seven years, has been provided through Eswatini Development Finance Corporation (FINCORP). This facility will allow FINCORP to offer financial support to local SMEs, particularly those in renewable energy investments and ICT innovations.
The contract for this credit facility was signed on 14 November 2019 between EIB and FINCORP. The signing ceremony took place at FINCORP offices in Mbabane.
Signing for EIB was Robert Schofield, Head of Financial Sector Division, whilst signing for FINCORP was the corporation's Group Managing Director, Dumisani Msibi.
EU Ambassador, Esmeralda Hernadez Aragones, and the Principal Secretary in the Ministry of Finance, Sizakele Dlamini observed the signing ceremony.
In her remarks after the signing ceremony, EU Ambassador Hernandez Aragones said the loan facility by the EIB towards the local SMEs was another important engagement and contribution by the European Union towards Eswatini's development initiatives.
She hoped the credit facility will indeed help improve SMEs in Eswatini.
As part of the facility, EIB will also provide technical support towards strengthening institutional capacity of FINCORP in order to achieve set objectives which will entail intensive staff training on Credit Management, Treasury Management as well as enhancing the present Risk Management Framework of the Corporation.
FINCORP's Group Managing Director, Dumisani Msibi, thanked EIB for this facility and said it will assist his corporation to meaningfully impact in national economic transformation and up-liftment of the general standard of living for the Swati people.
EIB's Robert Schofield, Head of the Bank's Financial Sector Division, said this was a landmark investment by EIB in Eswatini as it was the first time in 50 years for the EIB to be involved in the country. Schofield hoped this was the beginning of many more of such investments by the EIB in Eswatini.