The European Investment Bank, the European Union’s long-term lending institution, has agreed to provide €10m ($11.35m) to uniBank Ghana to support investment by private business across Ghana.

The investment will be matched by uniBank to provide a total of €20m ($22.70m) for local firms.

The new lending programme will also help to further develop the financial sector in the country.

The European Investment Bank’s new lending agreement with uniBank Ghana is the third scheme to support investment in the country under a €80m ($90.8m) credit facility launched in 2013 to improve access to finance by companies in Ghana.

Earlier credit lines under the European Investment Bank initiative were agreed with Société Générale Ghana and Ecobank Ghana.

Pim Van Ballekom, European Investment Bank Vice President, said over the last 40 years the European Investment Bank has supported private sector investment across Ghana, both directly and in cooperation with local banks.

“The new engagement with uniBank Ghana will build on the success of similar cooperation with leading banks across Africa and support important new corporate investment across the country. This significant new lending programme will both increase investment by the private sector and strengthen the role of local banks,” he said.

The new credit line will allow uniBank Ghana to provide loans in both Euros and US dollars, with a tenor of up to eight years.

This represents a much longer maturity than typically available in Ghana.

Lending under the scheme will support investment in agriculture, manufacturing, construction, transport, education and healthcare as well as reinforcing long-term investment by Ghanaian companies crucial for supporting economic growth, benefiting from new business opportunities and creating jobs.

Alongside support for company investment, the EIB engagement will help improve the banking sector in Ghana through backing expansion of branch networks, IT systems and staff training within uniBank Ghana.

“We welcome and thank the EIB for the facility and also assure our customers that we are in a much stronger position to meet their banking and financial needs,” said uniBank Chief Executive Officer, Felix Nyarko-Pong.

The EIB has provided nearly €600m ($681.03m) to support public sector projects and private sector investment in Ghana since the first operation in 1976.

This has included direct loans, credit lines with local banks and investment in smaller projects by private equity or microfinance funds.

The EIB’s engagement has supported investment in several sectors including energy, industry, transportation, and financial sector.

“The European Investment Bank is committed to supporting public and private sector projects that supports economic growth and improves lives across Africa,” said Van Ballekom