Co-op Bank acquires $25 Million (Sh3.4 Billion) from DEG of Germany to lend to small and medium-sized enterprises owned by women. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is a subsidiary of KfW Group.
Co-op Bank will use these funds to set up a credit line intended exclusively for micro, small, and medium-sized enterprises (MSMEs) that are managed or owned by women.
“The Co-op Bank is a long-standing customer of DEG. The current investment is an important contribution to supporting SMEs in developing countries in general and SMEs run by women especially,” said Monika Beck, a member of the management board of DEG. All the funds (100%) will go to female entrepreneurs, Beck affirmed.
“The EU guarantee is helping to realize this investment which is particularly relevant because of its development impact, thereby creating jobs and raising household income locally,” Beck added.
DEG has partnered with Co-op Bank since 2013. The current transaction contributes to the UN Sustainable Development Goals (SDGs), notably SDG 8 ‘Decent work and economic growth’ and SDG 5 ‘Reduced inequalities’ as well as to the EU’s Global Gateway Initiative. Co-op is among lenders that have been keen on supporting the growth of SMEs in the country.
