The European Investment Bank (EIB) has agreed to provide €110m (KSh 12bn; $120.93m) for investment by companies across East Africa under three new partnerships launched in Nairobi, Kenya.

Under the new initiative the EIB, will back investment by micro, small and medium enterprises (MSMEs) under three dedicated credit lines with the African Banking Corporation (ABC), NIC Bank and CRDB Bank that reflect different investment needs.

Pim van Ballekom, European Investment Bank Vice President, said: “Investment by small companies and entrepreneurs is essential for economic growth and to create jobs. The European Investment Bank is pleased to strengthen our support to ensure that East African companies can unlock new business opportunities and build on previous successful engagement with leading local banks.”

The new programme will support job creation and economic growth in Kenya, Tanzania, Uganda and Burundi and support investment across a range of sectors.

The EIB has agreed a €5m credit line with ABC Bank that will support investment by companies in both Kenya and Uganda.

This is the EIB’s second engagement with ABC Bank (in 2012, the EIB provided Ksh. 770m to the bank).

Shamaz Savani, ABC Bank Group Managing Director, said: “We are very happy to be partnering again with EIB and securing from them a second credit line. We have seen the immense potential SMEs have, and how access to affordable credit can turn around small entrepreneurs to become business leaders in their respective sectors.”

Companies in Kenya will benefit from a €50m credit line, agreed with NIC Bank Kenya.

Whilst investment in Tanzania and Burundi through a €55m loan to CRDB Bank will both support Tanzania based firms and includes €3m for companies based in Burundi.

This is also the EIB’s second engagement with CRDB.

Saugata Bandyopadhyay, Deputy Managing Director Operation & Customer Service at CRDB Bank, said: “We are delighted to deepen our partnership with EIB in supporting the development of SME and midcap in various sectors of Tanzanian economy especially agriculture.”

“SMEs in Tanzania contribute immensely to the growth of our economy and CRDB Bank has been playing a major role in the growth of local entrepreneurs especially women entrepreneurs and is keen in supporting SMEs to grow their businesses and improve their competitiveness,” he said.

Last year the European Investment Bank Group provided nearly €22bn to improve access to finance by small business around the world.

In Africa nearly €3bn has been provided by the EIB for investment by small business and entrepreneurs since 2005.