Promoting Access to Finance

Access to finance remains one of the largest constraints to private sector development in Africa. Banks have historically focused on large commercial clients in emerging markets, neglecting those at the lower end of the economic pyramid. Penetration levels at this low end are between 5 to 25 percent, a fraction of the rate in developed markets.

The IFC Private Enterprise Partnership for Africa helps strengthen financial markets and improve access to finance for micro, small and medium enterprises (MSMEs). PEP Africa offers a range of technical assistance and advisory services:

• Increasing finance to small businesses by helping banks acquire retail skills and systems they need to broaden reach
• Expanding the scale and capacity of microfinance institutions
• Promoting exports through trade finance
• Supporting nonbank financial institutions in areas such as leasing and housing.
• Building or strengthening securities markets
• Establishing or improving credit bureaus and registries

Finance to Smaller Business

Microfinance

Trade Finance

Leasing

Housing Finance

Securities Markets

Credit Bureaus

Lending to a broader base of the population and to more small businesses requires credit bureaus. Credit bureaus allow financial institutions to safely expand their lending to retail and small businesses, by providing accurate credit information. IFC and the World Bank have become internationally recognized for advancing credit bureaus.

In Africa, PEP Africa has engaged with the governments and other regulatory authorities in East Africa, Nigeria and South Africa to enhance the operating environment for credit bureaus. Attention is focused on revising banking legislation that prohibits information sharing and redressing licensing regulations to facilitate credit bureau operation.

Contact: Makena Mwiti
Telephone: +254 20 2759 416 • E-mail: mmwiti@ifc.org



For further information contact the product line specialist or:

Rubin Japhta
Operations Officer, Financial Markets Business Line
IFC PEP Africa
14 Fricker Road, Illovo, Johannesburg 2196
Telephone: +27 11 731 3000
E-mail: rjaphta@ifc.org
Web: www.ifc.org/africa