Through the partnership, IFC will enter a risk-sharing facility with BOA Kenya that will help the bank scale up lending to small and medium-sized enterprises (SMEs). The facility will cover 50 percent of losses on all eligible loans that BOA Kenya extends to SMEs, up to the equivalent of $5 million in local currency shillings.

Drawing on its global experience, IFC will also advise the bank on developing innovative risk-mitigation tools and help build its capacity to serve the SME sector, which employs roughly 15 million Kenyans.

"IFC's risk-mitigation product, combined with general and targeted advisory services support, will help BOA Kenya decrease risk and scale up its lending to SMEs in its most challenging markets. Also, it will help us transform into an SME-focused bank with branches across Kenya," said Ronald Marambii, Managing Director of Bank of Africa Kenya.

"Smaller businesses are the backbone of Kenya's economy but many struggle to secure financing in part because they are viewed as too risky," said Amena Arif, IFC Country Manager for Kenya. "With the right procedures, banks can overcome those risks, securing a robust client base while helping to drive economic growth and job creation."

The COVID-19 pandemic has negatively impacted Kenya's economy, sharply reducing economic activity. Even before the pandemic, many Kenyan SMEs struggled to access financing due to their perceived higher risk. Reducing that risk will help these businesses more easily access financing for growth.

IFC's partnership with BOA Kenya is supported by the Global SME Finance Facility (GSMEF) and the Women Entrepreneurs Opportunity Facility (WEOF).

GSMEF is a partnership between IFC and the United Kingdom's Foreign, Commonwealth and Development Office and the Netherlands Ministry of Foreign Affairs. WEOF, a global finance facility dedicated to expanding access to capital for women entrepreneurs, was launched in 2014 by IFC through its Banking on Women program, and Goldman Sachs 10,000 Women.

"We need to support female entrepreneurs with access to capital in order to facilitate their growth, particularly given the impact of COVID-19," said Charlotte Keenan, Global Director of Goldman Sachs 10,000 Women. "We are pleased to support the Bank of Africa Kenya as it expands lending to women-owned businesses in Kenya in this challenging time."

The facilities are dedicated to closing the financing gap faced by SMEs including women-owned SMEs (WSMEs) in emerging markets. GSMEF and WEOF's support includes performance-based incentives should BOA Kenya achieve significant growth in lending to climate-focused and women-led SMEs.

About Bank of Africa Kenya
Bank of Africa Kenya (BOA Kenya) is a subsidiary of the Bank of Africa BMCE Group, and operates in Kenya as a commercial bank providing banking services to corporate, SME and retail clientele. The bank has a network of 25 branches countrywide and is regulated by the Central Bank of Kenya limited. For more information, visit https://www.boakenya.com/
 
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 2021, IFC committed a record $31.5 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 the COVID-19 pandemic. For more information, visit www.ifc.org.
 

About GSMEF
The Global SME Finance Facility, a blended-finance partnership funded by the UK Foreign, Commonwealth & Development Office (FCDO) and the Netherlands Ministry of Foreign Affairs, is 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. For more information, visit www.ifc.org/gsmef.

 
About Goldman Sachs 10,000 Women
Goldman Sachs 10,000 Women is an initiative to foster economic growth by providing women entrepreneurs around the world with a business and management education and access to capital. The initiative has reached women from over 200 countries through a network of over academic, nonprofit, and bank partners. In partnership with the International Finance Corporation (IFC), Goldman Sachs 10,000 Women launched the first of its kind global finance facility in 2014 to enable access to capital to more women entrepreneurs. And now, by leveraging technology the 10,000 Women curriculum is available online through Coursera, creating access to a business education in more corners of the world.  For more information on Goldman Sachs' philanthropic investment in female entrepreneurs, visit   https://www.goldmansachs.com/citizenship/10000women/

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