New SME banking programme launched in Botswana, Mozambique and Zambia
The International Finance Corporation has launched a new advisory services programme to encourage lending to small and medium-sized enterprises (SMEs) in Botswana, Mozambique and Zambia.The International Finance Corporation has launched a new advisory services programme to encourage lending to small and medium-sized enterprises (SMEs) in Botswana, Mozambique and Zambia.
Called the Africa Micro Small and Medium Enterprises (AMSME) programme, it would complement a $13.5 million (€10 million) investment that has already been made in three banks under ABC Holdings, Engineering News reports.
It is hoped the move will also enable financial institutions to develop products specifically tailored towards SMEs.
The AMSME programme will be implemented over a two to three-year period and will support the creation of long-term SME banking operations.
Chief Executive Officer at ABC Holdings Douglas Munatsi said SMEs are the backbone of the economy and therefore Botswana, Mozambique and Zamibia would benefit from investment in this area.
At the end of last year, Deputy Executive Secretary of the United Nations Economic Commission for Africa Abdalla Hamdo welcomed the efforts being made by African governments to encourage growth in the SME sector.
He explained 60 percent of Africans work in this industry and such firms account for 90 percent of industrial companies.