South African small and medium enterprises (SMEs), particularly those owned by women, have received a major boost after the International Finance Corporation (IFC) announced new financing of R1,2 billion (€81m) to support First National Bank's lending.
This is a great opportunity for women-owned, tourism SMEs to break ground and impact the market.
The financing falls under the IFC SME Push Programme, hailed as a comprehensive, multi-stakeholder initiative that intends to promote lending and strengthen support for SMEs by the formal banking sector.
Aliou Maiga, IFC Africa Head, welcomed FNB's continued expansion of services to SMEs, with a new focus on women.
"We look forward to an even stronger partnership to increase our impact and improve the lives of South Africans who have been historically disadvantaged and who can make a major contribution to the local economy," said Maiga.
FNB pioneered SME Push, launched in June 2017, to channel up to R40 billion (€2.7bn) into South African SMEs over the next five to seven years through a comprehensive package, including investments, risk-sharing facilities and advisory services.
The second financing includes a syndicated loan and incentives to reach more women-owned enterprises within the general SME segments, in alignment with World Bank Group and Government of South Africa objectives to reach deeper into the economy.
The collaboration includes advisory services to FNB and its SME clients to increase their financial literacy. IFC is a member of the World Bank Group
