Swedfund has invested $30 million in Access Bank Nigeria Plc to significantly scale support for underserved micro, small, and medium enterprises (MSMEs) in Nigeria. This investment aims to provide long-term capital and capacity building for unbanked and under-banked businesses, facilitating sustainable private sector development and inclusive growth.
Addressing Nigeria’s Economic Challenges
Nigeria, home to 230 million people, faces an unemployment rate of 33%, with over half of its population under 30. The urgent need for job creation and workforce development is critical, especially amid ongoing crises such as insecurity, food shortages, and inflation. The resilience and growth of MSMEs are pivotal in addressing these challenges.
Swedfund’s Role and Objectives
Swedfund’s financial backing will help advance sustainable private sector development, promote inclusive growth, and expand access to finance for MSMEs. Kitanha Toure, Regional Director of West Africa at Swedfund, emphasized the importance of this investment, noting Access Bank’s strong market presence and dedicated MSME strategy.
Impact of the Investment
Access Bank is expected to facilitate:
– Direct and Indirect Job Creation: Supporting tax-generating activities and improving financial access for rural and underserved groups, including female- and youth-owned companies.
– Adherence to 2X Criteria: Meeting the global standard for gender finance, Access Bank is recognized as the best SME bank for women entrepreneurs in Africa.
Collaborative Efforts
The $30 million loan is part of a $295 million syndicate led by the Dutch development finance institution, FMO, and includes other Nordic and European development finance institutions such as BII, BIO, Finnfund, and Norfund. This collaboration underscores a shared commitment to fostering economic growth and development in Nigeria.
Expected Outcomes
The investment is poised to:
– Boost MSME Sector: Providing the necessary financial support and capacity building to help MSMEs thrive.
– Enhance Economic Stability: By promoting job creation and workforce development, the investment aims to mitigate the economic challenges faced by Nigeria.
– Promote Gender Inclusivity: With a focus on supporting female entrepreneurs, the investment aligns with global standards for gender finance.
In summary, Swedfund’s $30 million investment in Access Bank Nigeria Plc marks a significant step towards enhancing the resilience and growth of MSMEs in Nigeria, thereby contributing to the country’s sustainable economic development and inclusive growth.
