DCFTA Initiative East
The DCFTA Initiative East supports the smallest businesses (micro-enterprises with less than 10 employees) with loans through local microfinance institutions, provides finance and business support to the agri-food sector, and supports local banks to help them improve lending terms and conditions (lower interest rates and lower collateral requirements) for SMEs that are looking to invest in modern and innovative technology.
The DCFTA Initiative East has three main areas of intervention:
- Guarantee Facility - Offering SME loan portfolio guarantees to local banks, enabling them to improve lending terms and conditions and thus provide easier access to finance for SMEs.
- Microfinance Facility – Providing loans on attractive terms to microfinance institutions in order to increase access to finance for the smallest businesses.
- Technical Assistance – Providing support both to local banks and SMEs in the agriculture sector in order to help them to seize new trade opportunities, as well as to microenterprises in the context of the Microfinance Facility.