The African Development Bank(AfDB) has approved over $600,000 grant to Ministry of Industry, Trade and Investment in Nigeria. News Telegraph reports that the grant will support the expansion of Micro, Small & Medium Enterprises (MSMEs) in the country.
According to the report, the Minister of State for Industry, Trade and Investment, Hajiya Aishat Abubakar, confirmed the fund’s approval during a media chat. The Minister stated that the grant was awarded to support the the pre-development study for converting six out of the 23 Industrial Development Centers (IDC) to Industrial Clusters.
The AfDB grant will resuscitate the IDCs and position them to be a catalyst for economic development. The findings of the study are expected to provide bankable centers to be converted into full blown economic clusters where private participation and investment will be sought, she said.
Responding to inquires on measures to reposition MSMEs, the minister said the ministry was in process of fine-tuning the proposal that will cede between 20 to 30% of procurements to the SMEs sector.
She said the ministry will be leading a delegation to the Global Entrepreneurship Congress in Johannesburg, South Africa in March.
“It is a gathering that brings together thousands of entrepreneurs, investors, researchers, policy makers and other start-up champions from more than 160 countries to identify new ways of helping founders start and scale new ventures around the world”.
The AfDB has in recent months made a number of significant investments across Africa including investing in Kenya
. In Uganda, the AfDB awarded a grant to prepare transformational Strategic Program for Climate Resilience and in Kenya, it is providing financing to SME’s to boost trade finance by extending a $50m Line of Credit and $40m Trade Finance Line of Credit to the Commercial Bank of Africa Limited.