Beneficiary of IFC client, LAPO Bank, in Nigeria. © LAPO
The Global SME Finance Facility is a blended-finance partnership focused on helping to close the financing gap faced by SMEs in emerging markets. Catalyzing access to finance for SMEs, the facility has a goal of generating one million new jobs in the SME sector. The facility dedicates its efforts toward the most underserved SME segments, such as SMEs in fragile countries, very small enterprises, and women-owned SMEs.
A global partnership, the facility responds to a G-20 call for expediting SME financing and growth. To support this growth, the facility provides funding, risk mitigation and advisory assistance to financial institutions. This helps institutions expand lending to SMEs in challenging markets and segments. In addition, the facility aids governments with improving their nations' financial infrastructure, enabling capital to flow more efficiently to SMEs.
In its first years, the facility has proven the power of its multi-pronged approach and partnership model. By 2016, the facility had supported 56 client financial institutions. These institutions lent more than $6 billion through 67,000 new loans to SMEs. The facility's activities had helped generate 414,000 new jobs after four years.
Partnering to Multiply Returns
Joining forces with other organizations accomplishes more than any single one can. For this reason, the IFC-managed facility blends commercial financing from IFC and the European Investment Bank with donor funding from the UK Department for International Development (DFID) and the Netherlands Ministry of Foreign Affairs.
Wendy J. Teleki
Principal Operations Officer