Banking
Banks Begin Disbursement of N26.4b to SMEs
By Guardian
The Deposit Money Banks have begun the disbursement of the more than N26 billion enterprise development intervention fund under the Agriculture and Small and Medium Enterprises Investment Scheme (AGSMEIS) by the Bankers’ Committee.
The bankers at their yearly retreat in Lagos, last December, agreed to put the funds in the hands of Micro Small and Medium Enterprises’ across sectors starting January 1, 2018, regretting that such a huge amount pooled together since last year had remained idle.
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, assured: “We are going to be disbursing small loans like N100,000; N200,000; and N500,000 at not more than five per cent.”
The disbursements, is targeted at small businesses owned by “weak and vulnerable” entrepreneurs who cannot kick off their bankable projects due to funding, include barbers, hairdressers and small agribusiness schemes.
The bankers also expanded the scheme to incorporate those who want to learn tiling, mason and house interior decorations, among others, offering to train and equip, as well as take them through the daily management of such enterprises.
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said the move to support artisans and increase their number, is targeted at creating about 100,000 jobs in the first quarter of this year.
The tenor of the facility is long enough for small businesses, with a minimum of seven years and moratorium, so that those who accessed the fund can do so at low pricing and at a tenor that would give them ample time to repay.
“We are going to get people who will train them in those various skills taking into consideration the various geo-political zones. After training them, like we do in Anchor Borrowers Programme, where we buy seedlings, fertilisers, herbicides for them, we will buy equipment and deliver to them.
“When we cost their project, we will also deliver to them some kind of working capital, in case they need to rent a store and those kind of things to make them operational,” he said.
On the part of the CBN, its entrepreneurial development centres across the six geo-political zones of the country may now serve as a training place for people that would benefit from the scheme.
To get banks committed fully to the initiative, the committee agreed that as it takes off this January, while it must be a non-profit maximisation goal, there must be professional and transparent management process, to give everybody comfort.
Meanwhile, other incentives that would serve as a morale booster for banks’ participation may soon be unveiled, to keep the agreements binding as the funding takes off.
These include risk sharing modal, involving the borrowers, the apex bank’s use of differential Cash Reserve Requirement and possible participation of Development Finance Institutions.
“Currently on the agriculture side, CBN has an institution known as the Nigeria Incentive-based Risk Sharing for Agricultural Lending. That is working, but the committee feels that CBN can create a Nigeria Incentive-based Risk Sharing for SME Lending still under the same NIRSAL.
“We give ourselves the target that once we resume in January, it is going to be all work to make sure that those who require credit and the help of the banking system to create jobs that would grow the economy, will get them seamlessly.
By Adedapo Adesanya
Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.
The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.
This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.
The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.
Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.
Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.
This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
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