Introduction

Swedfund, the Swedish development finance institution, has extended a $30 million loan to Access Bank, Nigeria's largest bank by assets, aiming to bolster small and medium-sized enterprises (SMEs) in Nigeria. This loan forms part of a larger $295 million syndicate led by Dutch development bank FMO.

Strategic Partnership for SME Growth

Kitanha Toure, Regional Director of West Africa at Swedfund, emphasized the strategic importance of this partnership: "Access Bank, known for its strong market presence and with a committed MSME strategy, serves as an effective partner to reach MSMEs in need of financing in Nigeria."

Enhancing Trade Capabilities

Roosevelt Ogbonna, MD/CEO of Access Bank Plc, highlighted the broader impact of the facility during the signing event held in Hague, Netherlands: "This facility not only enhances our capital reserves, but also strengthens Africa’s trade capabilities and export potential. Putting these funds to use, we aim to catalyse growth across various sectors, stimulate business development, create jobs, and deepen financial inclusion."

Ongoing Commitment to Economic Development

This $30 million commitment marks the third arrangement of its kind facilitated by FMO for Access Bank, underscoring a shared commitment to invigorate Nigeria's local economy and generate employment. In 2018, Access Bank secured $10 million as part of a $100 million loan arrangement organized by European Development finance institutions FMO, Proparco, Norfund, and Finnfund.

Significance of Informal Businesses

Informal businesses, estimated at nearly 40 million, form the backbone of Nigeria's economy, accounting for approximately 90% of jobs. These enterprises contribute over 45% to the country's gross domestic product (GDP), with micro businesses comprising a staggering 98.8% of this extensive network.

Empowering Women Entrepreneurs

The statement highlighted Access Bank's eligibility to meet the 2X Criteria, a global baseline standard for gender finance, and recognized it as the best SME bank for women entrepreneurs in Africa.

Expansion of SME Support

Access Bank has a longstanding history of supporting small businesses in Nigeria. By November 2023, the bank aimed to target four million small businesses, increasing its Micro, Small, and Medium Enterprises (MSMEs) loan scheme from N30 billion to N50 billion.

Swedfund's Broader Regional Initiatives

Swedfund has been focusing on empowering women in sub-Saharan Africa and recently expanded its efforts into Cote d'Ivoire. In February 2024, the fund invested in West African financial services firm Teyliom Finance to support female entrepreneurs in the country.