The International Finance Corporation (IFC) has partnered with FMO, a Dutch development bank, to assist small businesses in Kenya by providing funds for working capital, expansion, and to weather the COVID-19 crisis.
IFC contributed $30 million and FMO contributed $20 million to the I&M loan. The funds will boost I&M’s capital position and enable the bank to lend to small and medium-sized enterprises in the manufacturing, trade, and construction sectors.
According to information on the IFC website, the two institutions will also train I&M bank workers on green financing to enable the bank to support sustainable investments, including in renewable energy and climate-smart agriculture.
“We believe that this funding line will help our MSME customers accelerate their business growth and support their expansion efforts while cushioning them from the ramifications of the COVID-19 pandemic,” said Kihara Maina, CEO, I&M Bank Ltd Kenya.
International Finance Corporation, which is part of the World Bank, said that it has prioritized supporting the banking sector in developing economies to improve the sector’s resilience as part of IFC’s response to the pandemic.
Marnix Monsfort, Director Financial Institutions, FMO said, “We are pleased to continue our support to our long-standing client, I&M Bank Ltd. As a well-reputed top-tier bank in Kenya focusing on supporting local MSMEs, this project aligns with FMO’s strategy of reducing inequalities and enhancing financial support in the COVID-19 recovery period.”
“IFC’s committed investment portfolio in Kenya is predominantly in the financial, manufacturing, agribusiness, services, and infrastructure sectors. Since March 2020, the International Finance Corporation has provided loans worth $395 million to Kenyan companies, including the loan announced today to I&M Bank Ltd,” said the International Finance Corporation on its website.
IFC SMEs Initiative
In May, the International Finance Corporation announced a $2 billion commitment to support smaller businesses, increase trade across Africa to galvanize the continent’s economic recovery from the pandemic and sustain and create jobs and business activities.
IFC’s committed investment portfolio in Kenya is predominantly in the financial, manufacturing, agribusiness, services, and infrastructure sectors. Since March 2020, International Finance Corporation has provided loans worth $395 million to Kenyan companies, including the loan announced today to I&M Bank Ltd.