You are here Home » Start-ups » Funding » European Investment Bank pledges $78 million to three East Africa countries

European Investment Bank pledges $78 million to three East Africa countries

by Milicent Atieno
European Investment Bank

Three companies in East Africa are set to benefit from a combined financial boost from the European Investment Bank (EIB) totallying $78 million. The three companies are Telkom Kenya, the Novastar II, and the BCS Group, the Medical Credit Fund.

The EIB will disburse the funds in Kenya Shillings so as to cushion the three companies from currency volatility.

The telecommunication company, Telkom Kenya, is set to take home EUR 35 million (Ksh. 4.1 billion). This money, according to the company, will go towards expanding the telecom’s 3G/4G network coverage across Kenya. To be specific, the money will be invested towards Telkom’s Fibre-To-The-Building network.

BCS Group will invest its $18 million loan towards the development of fibre optic networks throughout Eastern and Central Africa; including the bordering towns in Democratic Republic of Congo.

Lastly, Medical Credit Fund, who got $5 million, will put that money towards investing in small players within the healthcare sectors. Players such as clinics, diagnostics centers, hospitals, and pharmacies. A move that will enable Medical Credit Fund facilitate access to quality healthcare in the underserved regions.

Novastar II will get $15 million, which it will use as venture capital impact fund to back early-stage businesses. Novastar partners up with startups and facilitates them to achieve their ambitions.

This financing will benefit strategic initiatives by private sector players, who will be the key to propelling the Kenyan and African economy forward. Our backing will help to provide thousands of people with improved access to quality healthcare, and potentially millions of people with access to data networks, which nowadays is a basic condition for doing business in a connected world,” said Ambroise Fayolle, the Vice President of EIB.

You may also like