IFC Financial Institutions’ Post

ADB signed a landmark agreement with Merchant Finance Pte Limited to promote inclusive access to finance in Fiji. ADB’s local currency loan of $4 million, supported by a Women Entrepreneurs Finance Initiative (We-Fi) grant, will enable MFL to support small and medium-sized enterprises, with 75% earmarked for women-owned businesses. https://lnkd.in/gFWgcWT5 Asian Development Bank (ADB) #GenderEquality #FinancialInclusion

The International Finance Corporation (IFC) launched a new initiative initiative to help financial service providers deliver funds to small businesses in emerging markets, especially those owned by #women and those focused on #agriculture and #climate. The MSME Finance Platform (the Platform) will provide a financing package of up to $4 billion from IFC’s own account to banks, non-bank financial institutions, microfinance institutions, and innovative digital lenders that focus on micro, small, and medium enterprises (#MSMEs). In emerging markets, MSMEs and the informal sector are essential to economic growth, job creation, and poverty alleviation. Recent crises have financially weakened financial service providers, limiting their ability to meet increasingly stringent lending requirements. Through this mobilization approach, the MSME Platform aims to create a financing solution through capital optimization structures and potentially redirect substantial amounts of local currency financing to businesses. Read more: https://lnkd.in/eCYuMagt #accesstofinance #financialinstitution #ifc #worldbank #usaid #internationaldevelopment #funding #investinwomen #womenownedbusiness #climatechange #africa #africanentrepreneurs #globaldev #usaid #workwithusaid #emergingmarkets #developingeconomies #worldbank #womenowned

British International Investment and Ecobank Sierra Leone Sign $25 Million Risk Sharing Agreement to Boost Private Sector Growth Samir Abhyankar, MD and Head of Financial Services, BII, commented: “The signing of this agreement with Ecobank Sierra Leone underscores BII’s pioneering role to lead investments in countries that are often overlooked by investors. The facility will be a game-changer for Sierra Leone, providing much-needed capital for ambitious local businesses to accelerate their growth, spur job creation and deepen impact. It’s an example of BII innovating and working with partners to help address pressing challenges where it matters the most.”   https://lnkd.in/eFdntkE7 Sebastian Ashong-Katai Alex Kucharski Nhi Nguyen Stephen Priestley #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews #africa #banking #funding

Microfinance has emerged as a powerful tool to reach small and informal businesses that many traditional financial institutions are not designed to serve. Microfinance institutions are able to provide tailored financial products and training that cater to the specific needs of informal and microenterprises. Such products allow entrepreneurs to access credit, invest in their businesses, and build financial resilience. In #Madagascar, where 80% of the population works in the informal sector, microfinance institutions play a critical role in boosting economic growth and financial inclusion. IFC - International Finance Corporation’s Base of the Pyramid platform, supported by The World Bank's IDA Private Sector Window, helps these financial service providers expand access to finance to entrepreneurs like Patricia, Monique, and Jacques. Read about how these entrepreneurs have been able to grow their businesses and support their families and communities: https://lnkd.in/eHe7_A69 #IDAWorks #IDA21

SAMN is now officially rebranded as the Global Alliance for Financial Inclusion (GAFI)! #SAMN #financialinclusion #southasia #microfinance #msme #inclusivefinance #gafi

Equity Bank Limited is actively committed to empowering Small and Medium Enterprises (SMEs) to expand their operations beyond local markets and tap into regional opportunities. During a recent networking forum in Thika, Acting Managing Director Moses Nyabanda emphasized the importance of collaboration among SMEs, encouraging them to leverage the bank’s resources and expertise. Nyabanda highlighted Equity's extensive experience with trade missions to the Democratic Republic of Congo (DRC), underscoring the immense potential for Kenyan businesses to access new markets that are hungry for a variety of goods and services. Nyabanda urged SMEs to embrace this opportunity and contribute to Africa's wealth creation agenda. He articulated that scaling up operations not only addresses immediate needs but also positions businesses to meet long-term demands effectively. Equity Bank is dedicated to supporting SMEs through their growth journey, ensuring that businesses have the guidance and resources necessary to thrive in competitive environments. The bank’s commitment to solving Africa's challenges resonates deeply with its mission to drive economic development across the continent. Ambassador Mary Mugwanja, Associate Director of Public Sector and Institutional Banking, reassured attendees that ample financing options are available for businesses looking to scale. She encouraged SMEs to consider borrowing as a viable means to enhance their operations and diversify their offerings. Mugwanja provided insights into various departmental presentations that covered essential topics such as payments, agriculture, insurance, and trade finance, reinforcing the bank's role as a valuable partner in business development. In addition to addressing the forum attendees, Nyabanda and his team engaged directly with local entrepreneurs, visiting businesses like Fairnuts Limited and Kenblest Group. These interactions highlighted the bank's commitment to understanding the unique challenges and aspirations of its SME clients. By fostering partnerships and providing tailored support, Equity Bank aims to cultivate a robust ecosystem for SMEs, driving economic growth and innovation in the region. #EquityBank #SMEs #BusinessGrowth #EconomicDevelopment #Partnerships #Kenya #Africa

Siinqee Bank's Shareholders have Voted to Establish an Investment Bank Subsidiary. Siinqee Bank's shareholders have voted to establish an investment bank as part of a broader plan to enter Ethiopia's capital market ecosystem. The founding president Neway Megerssa announced that Deloitte was selected as an advisor to develop a business plan within three months, following an international bid. Deloitte, licensed by the Ethiopia Capital Market Authority (ECMA), is one of the firms qualified for this role. This initiative aligns with a new directive by the National Bank of Ethiopia to support the capital market while safeguarding the traditional banking sector. Overall, the Bank's paid-up capital is 8.01 billion Br, while it's revenue grew to 5.64 billion Br (53% rise from previous time) and total expenses are at 4.96 billion Br for the year. Siinqee Bank which formerly was a microfinance institution, transitioned to a full-fledged bank, debuting with a strong capital base to compete with industry veterans. Stay Connected to our social media platforms, LinkedIn: https://lnkd.in/egdhVFkc Telegram: https://lnkd.in/eV2RHtEw TikTok: https://lnkd.in/eQYjyKkH

The growth of Armenia’s microfinance sector hinges on the banking sector proactively closing the finance accessibility gap for small and medium-sized enterprises. This publication emphasizes the need for universal credit organizations, which serve SMEs, to be more competitive in order to gain a larger share of the microfinance sector and meet the financial needs of their clientele. It also explains how digitalization can help universal credit organizations harness investment opportunities and avoid being left behind in Armenia’s fast-growing economy. https://ow.ly/yqwG50QYUQx

Last week, the Asian Development Bank (ADB) approved a $300 million sector development program to help the Government of Uzbekistan expand access to finance for unbanked and underbanked microenterprises, promoting sustainable and inclusive growth in the country. The financial reforms supported by ADB will aid in commercializing state-owned banks, creating an enabling environment for microfinance institutions to better serve the needs of farmers, micro and small enterprises (MSEs), and contribute to financial stability. The Inclusive Financial Sector Development Program will support structural reforms to enhance the policy environment for inclusive finance, strengthen the institutional capacity of financial service providers, and diversify funding sources to support microfinance market growth. ADB's partnership with Uzbekistan aims to provide entrepreneurs, particularly women, with equal access to financial products and services, improving their lives and securing additional livelihoods. Uzbekistan’s financial sector is dominated by state-owned commercial banks, with microfinance institutions accounting for just 0.5% of the banking system. ADB's support will help address the credit gap, expand the inclusive financial system, and promote sustainable and inclusive growth in alignment with the country’s development plan, Strategy Uzbekistan 2030. ADB, a strategic partner and investor in Uzbekistan’s banking sector, focuses on providing sustainable support to the SME sector. Since joining ADB in 1995, Uzbekistan has received $12.5 billion in loans, grants, and technical assistance from ADB. #Microfinance #Banks #Uzbekistan #CentralAsia #Sustainable #Growth

British International Investment (BII), the UK’s development finance institution, has signed a $25 million risk-sharing agreement with Ecobank Sierra Leone, to support Sierra Leone’s economic growth by stimulating private sector participation in key sectors. This will allow Ecobank Sierra Leone to grow its loan book by raising credit limits and providing credits for five years, a term longer than what is available in the local market. As most of Sierra Leone’s private sector consists of small and medium-sized enterprises (SMEs) which employ about 70% of the population, this initiative tackles key challenges that Sierra Leone’s business community faces. Limited financial products, high collateral requirements, high interest rates, and the existence of short term loans often make these businesses hard to access capital. In addition, the facility operates in local currency, demonstrating BII’s willingness to navigate risks in frontier markets. The investment is the first from under the Africa Resilience Investment Accelerator (ARIA), a joint BII and FMO, the Dutch entrepreneurial development bank, effort to boost investment in countries like Sierra Leone that are frontier markets. The $50 million trade finance facility between Ecobank and BII is an extension of an earlier $50 million trade finance facility signed by the bank in 2021 which expanded its reach across Africa and supported supply chains in frontier markets. #AfricanFinance #EconomicDevelopment #SMESupport #InvestmentInAfrica #PrivateSectorGrowth