Absa Bank Limited (Absa), with several subsidiaries in Africa, is committed to providing financing solutions to micro, small and medium enterprises (MSMEs) and households in sub-Saharan Africa. This through microfinance institutions and non-bank financial institutions (MFIs and NBFI).
With this in mind, CDC Group, the UK’s development finance institution (DFI) and impact investor, announced earlier this week a new USD 50 million risk-sharing facility with Absa Bank Limited ( Absa). This MFI and NBFI risk-sharing facility is the first of its kind for CDC – supporting lending to these institutions (through credit risk mitigation) and enabling them to better serve households and MSMEs across the country. Africa.
The facility will also enable Absa to deploy significant capital and provide life-saving assistance to businesses and households in need of finance.
“We are delighted to partner with Absa again. This is CDC’s first risk-sharing facility that provides a local currency solution to MSMEs and households, ”said Stephen Priestley, director of financial services at CDC Group.
The official added, “We are confident that CDC’s countercyclical financing will provide much needed support to local financial institutions by diversifying their funding base and improving their ability to provide smaller loans to local businesses and hard-to-reach communities. “.
This support comes at a time when African companies are