The
Board of Directors of the African Development Bank Group (AfDB) through
its private sector window approved on March 11, 2015 a US $50 million
multi-currency line of credit (LoC) with a seven-year tenor to ABC
Holdings Ltd. and its subsidiaries in Botswana, Mozambique and Zimbabwe.
ABC
Holdings Ltd. (ABCH) is a rapidly growing financial institution
targeting local small and medium enterprises (SMEs) in these countries
covering various sectors such as construction, agriculture,
manufacturing, transport and services. ABCH is gradually increasing its
SME portfolio share targeting 30% by end 2018 as it plans to expand its
retail network across countries.
The
AfDB LoC will enable ABCH and its three selected subsidiaries to reach a
larger number of SMEs across a wide range of sectors by offering
medium- to long-term loans, which are not currently accessible for local
SMEs. The AfDB will provide local currencies, Botswana Pula and
Mozambique Metical to support local currency lending and promote
development of the financial sector in these countries. This facility
will also cover Zimbabwe where many enterprises face liquidity
challenge. The facility is expected to support at least 200 SMEs and
generate 800 jobs, including 400 jobs for women, during the period of
the project. Leveraging the relatively long tenor of the AfDB facility,
it is expected to increase the average loan tenor for SME clients who
can consequently expand their business, which will promote inclusive
growth of these countries.
The
Board of Directors of the African Development Bank Group (AfDB) through
its private sector window approved on March 11, 2015 a US $50 million
multi-currency line of credit (LoC) with a seven-year tenor to ABC
Holdings Ltd. and its subsidiaries in Botswana, Mozambique and Zimbabwe.
ABC
Holdings Ltd. (ABCH) is a rapidly growing financial institution
targeting local small and medium enterprises (SMEs) in these countries
covering various sectors such as construction, agriculture,
manufacturing, transport and services. ABCH is gradually increasing its
SME portfolio share targeting 30% by end 2018 as it plans to expand its
retail network across countries.
The
AfDB LoC will enable ABCH and its three selected subsidiaries to reach a
larger number of SMEs across a wide range of sectors by offering
medium- to long-term loans, which are not currently accessible for local
SMEs. The AfDB will provide local currencies, Botswana Pula and
Mozambique Metical to support local currency lending and promote
development of the financial sector in these countries. This facility
will also cover Zimbabwe where many enterprises face liquidity
challenge. The facility is expected to support at least 200 SMEs and
generate 800 jobs, including 400 jobs for women, during the period of
the project. Leveraging the relatively long tenor of the AfDB facility,
it is expected to increase the average loan tenor for SME clients who
can consequently expand their business, which will promote inclusive
growth of these countries.
Source: AFDB
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