FSDH Merchant Bank Limited and the African Guarantee Fund (AGF) has signed a N3.8 billion deal to expand the bank’s small and medium-sized enterprise (SME) business portfolio over an initial five-year period.
In Nigeria and other African nations, access to money is a major barrier to the expansion of businesses. AGF and FSDH want to bridge the finance access gap that exists in Nigeria for SMEs and women-owned businesses.
In a statement, the Managing Director of FSDH, Bukola Smith, acknowledged the impact of the scheme, saying: “At FSDH, we are promoting investments in growing sectors of the Nigerian economy like agriculture, healthcare, technology and the female economy. This transaction will open more opportunities for us to support the growth of the economy on a considerable scale and we will keep working with all relevant stakeholders to maintain this momentum.”
She further disclosed that the agreement would support the bank’s commitment to assisting women-owned businesses and SMEs in closing the funding gap.
“The N3.8 billion credit line will strengthen our short-term business loans and will be deployed directly to mid-sized companies and through SME aggregators, business incubators, investment acceleration programmes for businesses who are willing to scale and our women in business initiative”.
Last November, FSDH announced a N2 billion in funding for women-led businesses in partnership with the Development Bank of Nigeria (DBN).
According to the bank, the most recent deal with AGF has strengthened its resolve to support corporate economic growth and expansion into new markets.
Bendjin Kpeglo, the managing director of AGF West Africa said the relationship will deepen, promote, and develop cooperation in establishing financial inclusion and supporting systems for enterprises.
“The facility is centres around transforming the SME sector, while also particularly supporting women-led businesses who access less financing due to structural inequalities and discrimination. Through the AFAWA Guarantee for Growth program, we will boost the already existing products that FSDH Merchant Bank avails to women entrepreneurs. The guarantee will also foster sustainable development by unlocking financing for businesses focused on clean energy, cleaner production, green services, climate-smart agriculture and natural resource management,” Kpeglo said.
