Abidjan, Côte d'Ivoire, July 4th, 2023—IFC and La Banque Internationale pour le Commerce et l'Industrie de la Côte d'Ivoire (BICICI) today announced a partnership to make more financing available for trade, small businesses, and health sector companies in the country to support their growth, service delivery, and job creation.
Under the partnership, IFC is providing BICICI a $30 million financing package, which includes a $5 million credit line from IFC's Global Trade Finance Program and two risk-sharing facilities that will cover 50 percent of the credit risk for loans of up to $25 million the bank extends to SMEs in Côte d'Ivoire, including to health sector companies to help them finance the purchase of medical equipment.
SMEs are a key engine of private sector growth in Côte d'Ivoire, accounting for 98 percent of formally registered businesses and employing about a quarter of the country's working population. However, financial inclusion remains a challenge, with only about a third of SMEs in Côte d'Ivoire having access to a loan or line of credit. The health sector and women-owned businesses face even stricter credit constraints.
''We are proud to partner with IFC to better support Côte d'Ivoire's SMEs, including hospitals, clinics, pathology laboratories, diagnostic imaging centers, and medical equipment distributors, by financing much-needed medical equipment and, more generally, providing support to help them grow. The signing of these agreements further reassures our customers and partners of the capital of trust that BICICI still enjoys,'' said Ahmed Cissé, BICICI's chairman.
"IFC's financing will boost financial inclusion for underserved segments in Côte d'Ivoire such as SMEs, small- and medium-sized healthcare businesses, and women-owned businesses. Our partnership with BICICI will not only increase access to critical financing for trade and small businesses but will also support the healthcare sector to acquire vital medical equipment, benefitting more patients across income groups, said Olivier Buyoya, IFC's Regional Director for West Africa.
The risk sharing facilities are part of IFC's Small Loan Guarantee Program and Africa Medical Equipment Facility (AMEF). Both programs will support BICICI to provide $324 million in loans to SMEs by 2027, helping to narrow the SME financing gap in Côte d'Ivoire. In addition, IFC's AMEF will also provide capacity building services for both health sector businesses and BICICI.
IFC's investment is supported by the International Development Association's Private Sector Window Blended Finance Facility. The investment also includes support from the Women Entrepreneurs Finance Initiative to incentivize BICICI to increase its lending to women-owned SMEs.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About BICICI
Founded in 1962, BICICI is a universal bank providing corporate, commercial, and retail services that is one of the largest banks in Côte d'Ivoire. With total assets of US$1.5 billion, BICICI currently serves more than 180,000 customers through 39 branches. Since 1974, the Bank has been listed on the regional stock exchange with a 32.46% float currently.
About the IDA Private Sector Window
The International Development Association's (IDA) Private Sector Window (PSW) was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
About We-Fi
The Women Entrepreneurs Finance Initiative (We-Fi) is a collaborative partnership among the 14 governments that have made financial contributions, six multilateral development banks that serve as implementing partners, and other public and private stakeholders. We-Fi was formally established in October 2017 as a Financial Intermediary Fund hosted by the World Bank. We-Fi invests in programs and projects that help unlock billions of dollars in financing to address the full range of barriers facing women entrepreneurs—increasing access to finance, markets, technology, and mentoring, while strengthening policy, legal and regulatory frameworks. As one of the We-Fi Implementing Partners, IFC supports private sector clients with investment and advisory services to expand financial services and market access for women-owned/led firms, as well as increasing the capacity of women entrepreneurs to run high-growth businesses. For more information, visit www.we-fi.org.
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