COVID-19: Access Bank Secures $50m IFC Loan To Support SMEs
Access Bank has secured a $50 million loan from the International Finance Corporation, IFC, a member of the World Bank Group, to support Small and Medium-sized Enterprises in Nigeria.
IFC, in a statement, said it is providing the loan to help the bank increase liquidity in the SMEs sub sector which id going through economic challenges occasioned by COVID-19.
“The funds from the loan, made through IFC’s global COVID-19 fast-track financing support package, will allow Access Bank to provide increased trade financing and working capital to their business clients experiencing disrupted cash flows, supporting business activity and preserving jobs,” the statement said.
According to Access Bank Managing Director/CEO, Herbert Wigwe, it is important to ensure adequate finance for SMEs especially during these difficult times because they contribute over 45 percent of Nigeria’s GDP and account for about 96 percent of businesses and 84 percent of employment.
“IFC’s funding will not only enable us to extend financial relief to our clients across all sectors during the pandemic but beyond the COVID-19 crisis as well. Our partnership with IFC will help Nigerian businesses weather COVID-19 and set a course for recovery,” he said.
IFC country manager for Nigeria, Eme Essien Lore said: “It is crucial to support smaller businesses to keep Nigeria’s economy going during this unprecedented economic challenge.
“IFC’s longstanding partnership with Access Bank means together we can move much-needed funding to businesses that need it most, helping them remain in business and retain their employees.”
According to the statement, IFC’s global COVID-19 fast track facility, worth $8 billion, was launched in March 2020 to support business activity and preserve jobs in the face of COVID-19 and so far it has invested about $400 million through the facility in Africa.
Access Bank is the third bank in Nigeria to access the facility; the first was Zenith Bank on June 18 with $100 million; followed by First City Monument Bank, FCMB on June 25 with $50 million.
