SMEs in Kenya and Nigeria are among those to benefit from Covid-19 funding provided to banks by part of the World Bank Group.
The International Finance Corporation (IFC) has contributed to the fight against Covid-19 in Africa by supporting financial institutions, particularly with a view to helping small businesses.
The IFC announced last week that the private sector across the Middle East and Sub-Saharan Africa, will receive USD 5.6 billion during the current financial year, with an additional USD 2 billion for small and medium-sized enterprises (SMEs), which have been identified as a key part of the continent’s economy by those in the financial sector.
The 12 months to 30 June 2020 saw IFC commit USD 4.6 billion to the region. In a statement, IFC vice president for the Middle East and Africa, Sérgio Pimenta said: “Countries in the Middle East and Africa were making significant progress before the Covid-19 pandemic struck and at IFC our goal was to unlock private investment and create markets and opportunities to support that progress.”
“In the wake of the economic crisis brought on by the Covid-19 pandemic, we stepped up the momentum to help our clients stay in business and maintain jobs which are critical to economic growth and livelihoods. We applaud the perseverance and resilience of the small, medium and large businesses that are the foundation of economies in Africa and the Middle East and we will continue to support them in the next phase of the crisis and through the recovery.”
During the pandemic, IFC has already provided loans and support to countries including Ivory Coast, Egypt, Kenya, Mauritania, Nigeria and Uganda.
As part of its efforts, IFC this month provided a USD 50 million loan to Nairobi-headquartered Equity Bank Kenya , from its USD 8 billion Covid-19 fast-track facility, to support working capital and trade-related lending for SMEs, particularly in the manufacturing, health, trade, transport and consumer goods industries.
With Sub-Saharan Africa facing a severe economic impact from the pandemic , Kenya has, like many countries, struggled with supply chain issues and a drop in sources of revenue.
Equity Group’s chief executive, James Mwangi said the loan “will help Equity Bank extend much-needed support to our clients, particularly to SMEs in sectors hit hard by Covid-19. We have purposed to support and walk with them so that they can survive during this crisis, recover, and thrive after it”.
Mwangi called on business customers in the personal […]