Swedfund, a prominent Swedish development finance institution, has allocated a significant $30 million loan to Access Bank, Nigeria’s leading bank in terms of assets, with the primary aim of bolstering small and medium-sized enterprises (SMEs) in Nigeria. This loan forms part of a substantial $295 million syndicate spearheaded by the Dutch development bank FMO.
Kitanha Toure, Swedfund’s Regional Director of West Africa, expressed that Access Bank’s extensive market presence and steadfast MSME strategy position it as a valuable partner in reaching out to Nigerian MSMEs in need of financial support.
Roosevelt Ogbonna, the MD/CEO of Access Bank Plc, emphasized the loan’s pivotal role in reinforcing Africa’s trade capabilities and export potential, in addition to fortifying the bank’s capital reserves. He outlined the bank’s commitment to leveraging these funds to stimulate growth across diverse sectors, drive business development, generate employment opportunities, and deepen financial inclusion.
This latest $30 million commitment represents the third such arrangement orchestrated by FMO for Access Bank, underscoring their shared commitment to revitalizing Nigeria’s local economy and fostering job creation. Previously, in 2018, the bank secured $10 million as part of a $100 million loan arrangement facilitated by European Development finance institutions FMO, Proparco, Norfund, and Finnfund.
Informal businesses, which constitute nearly 40 million entities and account for approximately 90% of jobs in Nigeria, are the cornerstone of the country’s economy, contributing over 45% to its gross domestic product (GDP). Notably, micro-businesses make up a remarkable 98.8% of this extensive network.
The statement also highlighted that Access Bank meets the 2X Criteria, a global baseline standard for gender finance, and is acknowledged as the top SME bank for women entrepreneurs in Africa.
In a separate initiative, Access Bank articulated plans in November 2023 to target a total of four million small businesses, while in the same year, it augmented its Micro, Small, and Medium Enterprises (MSMEs) loan scheme from N30 billion to N50 billion, reflective of its significant support for small businesses in Nigeria.
Meanwhile, Swedfund has expanded its focus on empowering women in sub-Saharan Africa by venturing into Cote d’Ivoire. In February 2024, the fund made a strategic investment in West African financial services firm Teyliom Finance to bolster female entrepreneurs in the country.