Johannesburg, South Africa, 6 February
2018–IFC, a member of the World Bank Group, announced new financing
of R1.2 billion ($100 million) to support FNB’s lending to small
and medium enterprises, with a focus on women-owned businesses.
The financing falls under the IFC SME Push
Program, a comprehensive, multi-stakeholder initiative that intends to
promote lending and strengthen support for small and medium enterprises
by the formal banking sector.
FNB has a pioneering role as the first institution
to be financed under the SME Push. The second financing includes a syndicated
loan and incentives to reach more women-owned enterprises within the general
SME segments, in alignment with World Bank Group and Government of South
Africa objectives to reach deeper into the economy. The collaboration includes
advisory services to FNB and its SME clients to increase their financial
Mike Vacy-Lyle, CEO of FNB Business said,
“FNB is committed to actively supporting and growing SMEs as an engine
of job creation, economic growth and innovation. As the SME bank of choice,
our value proposition is based on understanding the challenges that small
businesses navigate and offering solutions that remove this everyday angst.
At FNB we also appreciate the important role that women-owned businesses
play in our economy. We feel that women run businesses require much more
airtime and we hope to grow this segment of the market.’
The IFC SME Push Program was launched in
June 2017 to channel up to R40 billion ($3 billion) into South African
SMEs over the next 5-7 years through a comprehensive package, including
investments, risk-sharing facilities and advisory services. The program
was developed to complement government policies promoting lending to small
and medium enterprises and to spur job creation in South Africa.
Aliou Maiga, IFC Regional Head for the Financial
Institutions Group in Africa said, “IFC applauds and supports FNB’s continued
expansion of services to small and medium enterprises, with a new focus
on women. We look forward to an even stronger partnership to increase our
impact South Africans that have been historically disadvantaged and that
can make a major contribution to the local economy.”
IFC is working to foster competitiveness
and inclusive business approaches in South Africa, supporting efforts by
the government of South Africa to reduce inequality, promote investments
and strengthen institutions.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org