In 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.

Project name FirstRand Bank Ltd. - Infrastructure
Region Sub-Saharan Africa
Sector Financial sector / Microfinance / SME
Service Investment Finance
OeEB project volume EUR 15 million
Projekt partner(s) FirstRand Bank Ltd.

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