On 29 June 2012, OeEB signed a loan to FirstRand Bank in a total of EUR 15 million for projects in Low Income Countries (LICs) and Sub-Saharan Africa in order to finance infrastructure.
Although commercial banks in South Africa have good access to saving deposits, these are predominantly short-term. Especially for financing infrastructure project long-term credits are needed. Because of a development deficit in the financial sector commercial banks cannot adequate afford long-term credits. The absence of a well-developed infrastructure is one of the greatest barriers in the development of the private sector.
The credit line of the OeEB is supposed to enable the allocation from long-term credits in LICs in Sub-Saharan Africa in order to finance infrastructure projects. By financing these projects OeEB helps towards a stabilization of the private sector as well as fostering private investments. New employment will be created and a stable economic growth for the region will be enabled.
Further projects with FirstRand Bank Ltd.:
OeEB credit line for renewable energy projects in South Africa