The European Investment Bank (EIB), through its development arm EIB Global, and the Banque Internationale pour l’Industrie et le Commerce (BIIC) have launched a 100 million euro financing facility to strengthen agricultural value chains across Benin. 

Backed by a guarantee from the European Commission, the strategic partnership operates under the European Union’s Global Gateway strategy to drive local agro-industrialisation, support job creation, and improve EU-Africa supply chain integration.

At least 70 per cent of the credit facility is ring-fenced for three priority commodity chains: cotton and textiles, soya, and cashew. 

The funding logic addresses a dual objective, expanding local sorting, storage, and processing infrastructure within Benin while reducing European industrial reliance on concentrated global suppliers. Cotton serves as an indirect input for European textile manufacturing, soya feeds EU livestock markets, and cashew provides raw material for European food processing. 

Moving up the processing value chain locally in West Africa is designed to shorten supply routes and improve product traceability to meet European quality standards.

BIIC, Benin’s largest commercial bank by key financial indicators, serves as the on-the-ground delivery vehicle for the funds, with OBARA Capital advising on the transaction’s financial structuring. 

Early beneficiaries of the facility include Savè-based agricultural trader Akiyo, which secured funding for soya and cashew sourcing, and Ouidah-based textile manufacturer Couleur Indigo, supported to develop a production site for indigo-dyed fabrics using locally processed cotton. 

BIIC Chief Executive Officer Arsène M. Dansou noted that the partnership will help build competitive local sectors that generate employment and integrate effectively into global trade networks.

Luxembourg is funding a complementary technical assistance program through its Financial Inclusion Fund. 

The initiative will strengthen BIIC’s capacity in sustainable finance and Environmental, Social, and Governance (ESG) assessments while helping local small and medium-sized enterprises (SMEs) and cooperatives structure bankable projects. 

Additionally, the deal falls under the European Commission’s “Women for Stronger Communities and Growth” initiative, establishing gender-lens criteria to prioritise enterprises employing or led by women.

Source: The FinTech Times
Image Credit: International Partnership