IFC gives assistance to Kenyan SMEs affected by the COVID-19 crisis
IFC—a sister organization of the World Bank and a member of the World Bank Group—is the largest global development institution focused on the private sector in developing countries. The Bank Group has set two goals for the world to achieve by 2030: end extreme poverty and promote shared prosperity in every country
IFC, a member of the World Bank Group announced a $50 million loan to Diamond Trust Bank Kenya Limited (DTB) to support its borrowers, especially small and medium enterprises (SMEs), who have been affected by the economic challenges of COVID-19.
IFC gives assistance to Kenyan SMEs, the funds, which will be directed to Kenyan businesses across a range of sectors, are being provided under IFC’s global $8 billion fast-track COVID-19 facility. The facility was launched in March to protect jobs and support businesses with working and trade-related capital as economies grapple with the challenges of the pandemic.
Manuel Moses, IFC Country Manager for Kenya, said, “IFC’s partnership with DTB Kenya is part of our strategy to help businesses in Kenya manage the impacts of COVID-19 so they can continue providing essential goods and services. IFC is committed to helping countries across Africa meet the unique challenges of COVID-19 and also speed the process of recovery.”
In April, Kenya’s Central Bank reported that SMEs had been hard hit by the economic slowdown caused by COVID-19 in part because of their challenges accessing fresh capital. The World Bank Kenya Economic Update projects that Kenya’s gross domestic product will fall this year due to the negative impacts of COVID-19, underscoring the urgent need to support the country’s smaller businesses.
IFC has earmarked $2 billion of its $8 billion COVID-19 facility to the IFC Working Capital Solutions Program to provide funding to emerging-market banks so they can help businesses shore up their working capital.
The IFC COVID-19 facility will support existing clients in the infrastructure, financial, manufacturing, agriculture, healthcare, and other sectors vulnerable to the pandemic.
Original source: IFC