AfDB approves $50m to ABC Holdings in Botswana, Mozambique and Zimbabwe

0
538
ABCH is gradually increasing its SME portfolio
ABCH is gradually increasing its SME portfolio
ABCH is gradually increasing its SME portfolio

The African Development Bank (AfDB) through its private sector window has approved a $50 million multi-currency line of credit (LoC) with a seven-year tenor to ABC Holdings and its subsidiaries in Botswana, Mozambique and Zimbabwe.
ABC Holdings (ABCH) is a rapidly growing financial institution targeting local small and medium enterprises (SMEs) in these countries covering various sectors such as construction, agriculture, manufacturing, transport and services. ABCH is gradually increasing its SME portfolio share targeting 30 percent by end 2018 as it plans to expand its retail network across countries.
The AfDB loan will enable ABCH and its three selected subsidiaries to reach a larger number of SMEs across a wide range of sectors by offering medium- to long-term loans, which are not currently accessible for local SMEs. The AfDB will provide local currencies, Botswana Pula and Mozambique Metical to support local currency lending and promote development of the financial sector in these countries.
This facility will also cover Zimbabwe where many enterprises face liquidity challenge. The facility is expected to support at least 200 SMEs and generate 800 jobs, including 400 jobs for women, during the period of the project. Leveraging the relatively long tenor of the AfDB facility, it is expected to increase the average loan tenor for SME clients who can consequently expand their business, which will promote inclusive growth of these countries.

LEAVE A REPLY

Please enter your comment!
Please enter your name here