Yemisi Izuora
To increase access to sustainable finance in Nigeria, Canada’s Development Finance Institution, FinDev Canada, provides a loan of up to US$ 40 million to Stanbic IBTC. This loan to Stanbic IBTC, a member of Standard Bank Group, Africa’s largest bank by assets, paves the way to a long-term partnership in the Sub-Saharan African region.
FinDev Canada’s loan will support Stanbic IBTC Bank’s sustainability-related activities in Nigeria and support the development of productive sectors of the economy, including agribusiness, health, education, affordable housing, and sustainable infrastructure. It will also increase access to finance for micro, small and medium-size enterprises, and financing for climate change mitigation and adaptation. At least 30% of the loan amount is dedicated to women-owned or led enterprises.
Nigeria’s economy heavily relies on micro, small and medium enterprises, which generate an estimated 84% of employment and account for 96% of businesses. While women own 41% of the micro-enterprises segment, many remain unbanked due to a persistent gender financing gap.
Through our partnership with Stanbic IBTC Bank, the seventh largest bank in Nigeria by assets, serving over 3 million clients through a network of 130 branches, FinDev Canada can expand its reach to these crucial but often underserved segments of the Nigerian economy.
“We are proud to support development and economic growth through the private sector” declared Lori Kerr, Chief Executive Officer at FinDev Canada. “Market development is a key priority for FinDev Canada and the partnership with Stanbic IBTC Bank offers a tremendous opportunity to enhance access to capital for important sectors of Nigeria’s economy, contributing to stronger markets and improving the livelihoods of women and men. Our partnership with Stanbic IBTC Bank is also an opportunity to continue to expand our impact in Sub-Saharan Africa in the years to come.”
“As we embark on this transformative journey, I am honored to acknowledge the strategic importance of the financing we have secured to champion sustainable and gender-inclusive financing,” said Wole Adeniyi, Chief Executive, Stanbic IBTC Bank. “This financial commitment not only fuels our vision for a more sustainable future but also underscores our unwavering dedication to fostering equal opportunities. Empowering women and advancing sustainable initiatives is not just a financial decision, it is a commitment to building a world where prosperity knows no gender, and where every investment is a step towards a brighter, more sustainable future. Together, with this significant partnership with FinDev Canada, we pave the way for a future where financial strength and social impact walk hand-in-hand,” Wole added.
This transaction will contribute to FinDev Canada’s long-term development impact goals and the Sustainable Development Goals (SDGs) particularly SDG 8, Decent Work and Economic Growth, SDG 5, Gender Equality, and SDG 13, Climate Action.
This transaction qualifies for the 2X Challenge, which seeks to shift more capital towards investments that empower women in developing countries, to access entrepreneurship and leadership opportunities, quality jobs, and products and services that enhance their economic participation.