JOHANNESBURG — South Africa's Absa bank and China Development Bank (CDB) on Friday announced the conclusion of a $100 million Special Facility Agreement to fund small and medium-sized enterprises (SMEs) in Africa.

Absa is a subsidiary of the Barclays Africa Group. The money will benefit Barclays bank's existing and prospective SME clients across the continent. The $100 million will address the current funding needs, and may be increased in the future to assist with new funding opportunities within Barclays's operations, both banks said on Friday.

"We are glad to partner with CDB on this landmark transaction, which also echoes the 2017 BRICS theme of Stronger Partnership for a Brighter Future," said Craig Bond, head of partnerships, joint ventures and strategic alliances at Barclays Africa Group Limited.

The funding is expected to assist the African SMEs who face funding shortages. SMEs on the continent have the potential to boost economic growth and create employment.