Johannesburg, June 21, 2021 – The U.S. Mission to the African Union, the U.S. Agency for International Development (USAID), the U.S. International Development Finance Corporation (DFC), and the African Union Development Agency (AUDA-NEPAD) have announced their collaboration on the “100,000 MSMEs Initiative.”
This Initiative contributes to the “1 Million Jobs Initiative” of the African Union (AU) and aims to reach 100,000 micro- small- and medium-sized enterprises (MSMEs) across the continent by the end of 2021 and 1 million MSMEs by the end of 2024. This AUDA-NEPAD-led Initiative is joined by strategic resource partners, Ecobank, McKinsey & Company, The World Bank Group, Microsoft, and UNDP, among others, and seeks to support MSMEs across the continent with access to finance, capacity building, networking and mentoring, and introduction to new markets and procurement opportunities.
In 2021, DFC will engage with select local banking groups in Africa to provide guaranties and/or loans in support of access to finance for MSMEs and help connect these banking groups to AUDA-NEPAD’s platform and support services. AUDA-NEPAD will offer support services to African MSMEs receiving DFC-supported financing across the continent. DFC will also seek additional transactions in support of AUDA’s initiative in future years, leveraging support from USAID to partner with African financial institutions focused on MSMEs across the continent. Additionally, the U.S. Mission to the African Union will continue to provide technical assistance directly to AUDA to advance the 100,000 MSMEs initiative.
DFC collaboration with AUDA-NEPAD builds on existing U.S. Government efforts to increase investments that strengthen economic growth, technology, energy independence, and infrastructure in Africa. DFC’s collaboration with AUDA-NEPAD, along with the support of USAID and the U.S. Mission to the African Union, adds to a range of existing DFC partnerships.