Smaller businesses are a crucial part of the economies of most African countries, contributing a significant portion of employment and economic activity. Supporting their development and making it easier for them to access the financing they need to grow is a central part of IFC’s strategy in Africa.
In September, IFC joined hands with Kenya’s Diamond Trust Bank to help increase financing for this crucial sector of Africa’s economy. IFC will couple its loan of $10 million dollars with a broad range of advisory services designed to help the bank increase lending to small and medium enterprises. The agreement is part of a broader financing package through which IFC is also supporting Diamond Trust Bank’s expansion in East Africa.
IFC first became a shareholder in Diamond Trust Bank in 1983, making it IFC's oldest client in Kenya’s financial sector. The relationship is part of global IFC's partnership with the Aga Khan Development Network and its investment arm, the Aga Khan Fund for Economic Development, Diamond Trust Bank’s main shareholder.
WIDE-RANGING PARTNERSHIP
IFC has worked with the Aga Khan Fund for Economic Development on many projects across several countries—from Afghanistan Tajikistan, and Pakistan, to the Ivory Coast, Uganda, Rwanda and Kenya. The partnership spans financial institutions, such as banks and microfinance institutions, and real sectors such as manufacturing, power, aviation, transport, health care and education.
"IFC and the Agha Khan Development Network share a common vision to promote private enterprise so that poor people have the opportunity to escape poverty and improve their lives," says Jean Philippe Prosper, IFC Director for Eastern and Southern Africa. "Our shared commitment to the private sector’s central role in development has enabled us to work closely together on many projects over the years.”
IFC's latest partnership with Diamond Trust Bank will strengthen its capital base, enabling it to offer services to people and regions that have not had easy access to financial services in the past. IFC advisory services will also play an active role in such areas as introducing best practices in corporate governance, risk management, and technology. IFC also expects to work with the bank to help it better support trade transactions between East African companies and those in other regions.
For more information contact:
Houtan Bassiri
Communications Officer
Johannesburg, South Africa
Tel: +27 11 731 3179
Email: hbassiri@ifc.org
