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Posted on July 17, 2024 | Updated at 9AM

FinDev Canada, FMO and seven other investment partners join forces in a $295M loan to Access Bank supporting small businesses in Sub-Saharan Africa

A business owner in her store

Montreal (Quebec), 17 July 2024 – Canada’s bilateral Development Finance Institution, FinDev Canada, joins the Dutch entrepreneurial development bank FMO and seven other impact investors to announce a $US 295 million commitment to Access Bank, Nigeria’s leading bank. This loan facility represents FinDev Canada's first transaction with Access Bank.  

FinDev Canada will be lending $US 50 million as part of the FMO-led facility to support market development, gender equality and financial inclusion across Nigeria. The funding will strengthen Access Bank’s capital base and target underserved Micro, Small, and Medium Enterprises (MSMEs) including enterprises led by women.  

 

Nigeria faces its most severe economic crisis in decades. By providing access to working capital and supporting financial resilience in local markets, Access Bank helps MSMEs tackle economic challenges through funding, capacity building and networking opportunities. 

 

In addition to FinDev Canada and FMO, the syndication partners include UK’s development finance institution and impact investor British International Investment, the Belgium development financial institution BIO, impact investor BlueOrchard, the Finnish development financier and impact investor Finnfund, the Norwegian development finance institution Norfund, social impact investor Oikocredit, and the Swedish development finance institution Swedfund.  

 

There are nearly 40 million MSMEs in Nigeria, which accounts to 86 percent of employment and 50 percent of the country’s GDP. Even though MSMEs are critical to economic growth in Sub-Saharan Africa, they face many challenges with accessible finance opportunities due to lending requirements, high interest rates and lack of formal credit history. These challenges are especially prevalent in Nigeria. 

The commitment from the investment partners will expand Access Bank's financial reserves and provide much needed working capital and financing to Nigerian businesses across various sectors. The funding will stimulate economic growth and create jobs opportunities in Africa’s most populous country.  

“This transaction is aligned with FinDev Canada’s investment priorities, particularly market development and access to finance for women” Paulo Martelli, VP and Chief Investment Officer at FinDev Canada, declares. “We are pleased to join our dedicated partners to support Access Bank’s mission to fund underserved MSMEs and address financial inclusivity gaps through job and leadership opportunities across Nigeria.” 

“This agreement marks yet another significant achievement in our longstanding partnership with the Dutch Entrepreneurial Development Bank. This monumental syndicate Tier II Facility agreement underscores the deep-rooted trust and synergy between our institutions. For us at Access, this facility not only enhances our capital reserves but also strengthens Africa's trade capabilities and export potential. Putting these funds to use, we aim to catalyze growth across various sectors, stimulate business development, create jobs, and deepen financial inclusion, aligning with Access Bank's mission to drive progress and development throughout the continent and beyond,” CEO of Access Bank Roosevelt Ogbonna said. 

About FinDev Canada        

FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and knowledge, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and Paris Agreement commitments. FinDev Canada is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada at www.findevcanada.ca.     

 

About FMO 

FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track-record in empowering entrepreneurs to make local economies more inclusive, productive, resilient and sustainable. FMO focuses on three sectors that have high development impact: Agribusiness, Food & Water, Energy, and Financial Institutions. With a total committed portfolio of EUR ~13 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. For more information: please visit www.fmo.nl/ 

 

About Access Bank 

Access Bank, a wholly owned subsidiary of Access Holdings Plc, is a leading full-service commercial bank operating through a network of more than 700 branches and service outlets spanning 3 continents, 22 countries and over 60 million customers. The Bank employs over 28,000 people in its operations in Africa and Europe, with representative offices in China, Lebanon, India, and the UAE. 

Access Bank’s parent company, Access Holdings Plc, has been listed on the Nigerian Stock Exchange since 1998. The Bank is a diversified financial institution which combines a strong retail customer franchise and digital platform with deep corporate banking expertise, proven risk management and capital management capabilities. The Bank services its various markets through three key business segments: Corporate and Investment Banking, Commercial Banking, and Retail Banking. The Bank has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last 18 years, becoming one of the continent’s largest retail banks. 

 

As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations. The Bank strives to deliver sustainable economic growth that is profitable, environmentally responsible, and socially relevant, helping customers to access more and achieve their dreams. 

 

Media Contact 

FinDev Canada  

Florence Reinson   

Senior External Communications and Media Advisor