IFC injects R1.2 billion in finance to FNB to expand SME lending

The International Finance Corporation has announced new financing of R1.2 billion to support First National Bank’s lending to small and medium enterprises, with a particular focus on women-owned businesses.

The investment forms part of the IFC SME Push Program that helps financial institutions reach more clients in the micro and small enterprise space.

Manager at the IFC Sub-Saharan Africa financial institutions group, John Wilson says women constitute a small fraction of those who receive funding from banks.

He says FNB will make the selection.

They will have to be comfortable with the risk decision making.

John Wilson, Manager at the IFC sub-Saharan Africa financial institutions group

The programme we are trying to put together, we are trying to mobilise 2 to 3 billion dollars into the market.

John Wilson, Manager at the IFC sub-Saharan Africa financial institutions group

We have seen roughly 6 million SMEs in the country, only a fraction, 10% are formal. All of those formal companies have bank accounts. But only roughly half of them get income loans from the formal financial institutions. That means everybody else needs to get access to funding from somewhere else.

John Wilson, Manager at the IFC sub-Saharan Africa financial institutions group

Click on the link below to hear more...


Recommended

by NEWSROOM AI

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
How to pay less tax by writing off 100% of an investment in a small business

How to pay less tax by writing off 100% of an investment in a small business

Want to pay less tax, and make some money? Pavlo Phitidis discusses Section 12J of the Income Tax Act.

Need money for a business? Finfind connects providers and seekers of finance

Need money for a business? Finfind connects providers and seekers of finance

The Money Show’s Bruce Whitfield interviews Finfind CEO Darlene Menzies for his weekly small business feature.

Shanduka's top performing SME Modi Mining and how its managed to stay afloat

Shanduka's top performing SME Modi Mining and how its managed to stay afloat

The company was founded by Sam and Christina Molefi, and provides services to the mining sector.

WorkTripper helps the business traveller with smaller budgets

WorkTripper helps the business traveller with smaller budgets

500 000 people travel for business locally every year.

Find out 9 types of funding methods to consider for your SME

Find out 9 types of funding methods to consider for your SME

Business owners should gather as many skills as possible to avoid relying on more additional resources that end up being costly.

70% of top 40 SA companies contributed to R1.5 billion SME Fund

70% of top 40 SA companies contributed to R1.5 billion SME Fund

The Small and Medium Enterprises (SME) Fund will make equity investments in small enterprises with growth potential.

Popular articles
From Cape to Cairo: 80-year-old Julia travels to Egypt using 20-year-old car

From Cape to Cairo: 80-year-old Julia travels to Egypt using 20-year-old car

‘It took approximately 4 – 5 months because I had to make some stops on the way for repairs.' - Julia Albu, the African Conquest

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Bruce Whitfield interviews La Grange about her and Madiba's attitude to money (hopes and fears, successes and failures, etc.)

Unravelling Gupta links revealed in Parliamentary Eskom inquiry

Unravelling Gupta links revealed in Parliamentary Eskom inquiry

Journalists Sikhonathi Mantshantsha and Kyle Cowan discuss just how the Guptas and their associates helped capture Eskom.

How to make money through ‘buy-to-let’ (using very little of your own money)

How to make money through ‘buy-to-let’ (using very little of your own money)

Bruce Whitfield interviews Francois Janse van Rensburg, author of “Making Money through Buy-To-Let in South Africa".

MTN Walk The Talk with 702: Get your entries in and be part of a united Joburg!

MTN Walk The Talk with 702: Get your entries in and be part of a united Joburg!

Join Joburgers from all walks of life come together peacefully, united in their diversity for a fun family day out.

UPDATE: Chilling WhatsApp from Marli van Breda's ex-boyfriend read out in court

UPDATE: Chilling WhatsApp from Marli van Breda's ex-boyfriend read out in court

Marli van Breda's ex took the stand in the trial of triple murder accused Henri van Breda.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?