The European Union (EU) and EDFI Management Company (EDFI MC) together with European Development Finance Institutions (EDFIs) have raised more than €2 billion in financing aimed at generating employment, and enhancing financial inclusion, especially among young and women-led businesses in Nigeria and the rest of Africa.
The EDFI MSME Platform Plus Programme, supported by €255 million of EFSD+ guarantees, will provide critical support for job creation, and economic growth for micro, small, and medium enterprises particularly in the manufacturing, supply chain, and agriculture sectors in Sub-Saharan Africa and the EU Neighbourhood East regions.
European Commissioner for International Partnerships Jutta Urpilainen stated: “We proudly launch the EDFI MSME Platform Plus Programme, a key initiative to empower micro, small, and medium enterprises in Sub-Saharan Africa and the EU. This programme not only drives economic growth but also supports underserved business owners, especially women, in rural and vulnerable areas. Together, and through Global Gateway, we are paving the way for a more inclusive future and strengthening local value chains for sustainable development.”
Chief Executive, Proparco, Francoise Lombard, said “As European DFIs, we celebrate the collective effort that has led to the launch of the EDFI MSME Platform Plus, a European-backed initiative enabling EDFIs to increase financing for micro, small, and medium enterprises. By providing essential financial and non-financial support, the initiative aims to boost job creation and strengthen the economic resilience of local businesses in Sub-Saharan Africa and the EU Neighborhood East. This reflects our shared commitment, as Team Europe, to sustainable development and the empowerment of communities.
Recently, EDFI AgriFI, the EU-funded Agriculture Financing Initiative, committed EUR 5 million to Babban Gona, an agricultural enterprise co-owned by the smallholder farmers in Nigeria.
Babban Gona’s services include education and training in sustainable farming practices, provision of high quality affordable agricultural inputs, provision of storage facilities, as well as marketing and distribution support.
Established in 2012, the Babban Gona business model has offered some 70,000 smallholder farmers with tailored technologies and facilities enabling them to optimize their yields, productivity, and income. It also became the largest maize producing entity in Nigeria in 2016. By supporting its scale up, AgriFI will contribute to the recruitment of 12,000 additional farmers; the cultivation of 10,000 additional ha, and the production of some 40,000 MT of maize per year.
“We are very proud to back Babban Gona’s social business. Not only does the company support subsistence to commercial transition in rural Nigeria, it also seeks to leverage agribusiness to tackle insecurity in the country, rooted in entrenched levels of youth unemployment. AgriFI’s financing will support the expansion of Babban Gona’s innovative farmer service model that has proven to increase smallholders’ yield up to 2 times, and their income up to 2.5 times the national average,” remarked EDFI AgriFI Manager, Dimitry Van Raemdonck.
”It is a great opportunity to partner with EDFI AgriFI on this journey towards creating sustainable employment for youth and ending insecurity for all in Nigeria. With EDFI AgriFI’s transformational financial support, we can expand our reach to empower more individuals at the bottom of the pyramid and protect the legacy of future generations. We now drive towards impact, hand-in-hand with EDFI AgriFI,” Babban Gona Managing Director, Kola Masha explained.
