Bujumbura, Burundi, March 11, 2024—IFC and Banque de Crédit de Bujumbura (BCB), the third largest bank in Burundi, today announced a partnership to boost trade and growth by expanding access to financing for thousands of micro, small and medium-sized businesses in the country, including informal businesses.
IFC is providing BCB with a $20 million loan, of which $10 million is mobilized from institutional investors, to support BCB's strategy to significantly grow its SME portfolio and become the leading bank serving small and informal businesses in Burundi. IFC is also providing a trade financing facility through its Global Trade Finance Program (GTFP) for $5 million to increase access to international trade financing for local exporters and importers.
"One of BCB's main objectives is to transform its balance sheet in favor of SMEs. BCB understands that the more SMEs grow, the greater its growth. As a result, BCB is ready to support its SME customers and the SME non-customers who approach it. BCB has also set up products tailored to women's entrepreneurship, and part of this financing will also go to SMEs run by women," said Roger Guy Ghislain Ntwenguye, BCB Managing Director.
"IFC's partnership with BCB will help bridge the large financing gap in Burundi and give formal and informal micro-, small-, and medium-sized enterprises (MSMEs), which represent over 90 percent of firms in the country, better access to the funding they need to grow and create jobs," said Mary Porter Peschka, IFC regional Director for Eastern Africa.
The SME Finance Forum estimates that the financing gap for Burundi's MSMEs is approximately $491 million, equivalent to about 16 percent of Burundi's GDP.
IFC's SME loan falls under its Base of the Pyramid (BOP) Platform, a $1 billion global financing facility to help financial service providers deliver funding to small businesses, informal enterprises, and low-income households. IFC's trade financing is part of its $1 billion Africa Trade and Supply Chain Finance Program (ATRI), which is supporting Africa's regional trade development and helping to reduce the continent's reliance on imports. Both initiatives are supported by the International Development Association's Private Sector Window Blended Finance Facility.
IFC is committed to supporting Burundi's Vision 2025 Development Plan, which is focused on unlocking private sector-led growth and aims to position Burundi as a regional hub for trade, logistics, transportation, and digital communication.
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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 2023, IFC committed a record $43.7 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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