Fidelity Bank partners FMO, BIO for SME lending

Fidelity Bank Limited has received a loan of $ 54 million from two companies to enable it to provide long-term capital to small and medium enterprises (SMEs).

The companies are The Netherlands Development Finance Company (FMO) a Dutch development bank which supports sustainable private sector growth by investing in ambitious entrepreneurs and the Belgian Investment Company for Developing Countries (BIO).

At the signing ceremony in Accra, the Managing Director of Fidelity Bank, Mr Jim Baiden, said; “FMO and Fidelity have had a long standing relationship based on our mutual interest in developing the SME sector, and this facility signifies our growing relationship with development financiers.”

Mr Baiden said the SME sector, being the largest growth area in the economy, was of high interest to the bank, adding that he had noticed a challenge of the low access to funding in that sector.

He added that due to that drive, the bank acquired full stake in Procredit to acquire the system that was needed to roll out the SME credit, the credit methodology, the branch network and the skills.

He stated that with the capital injection of $54 million and the partnership built, it had given the bank the financial muscle to do more for the SME sector and to give them the liquidity to build their business and contribute to the growth of the economy.

 “We are looking forward to building a lasting business relationship with SMEs,” he stated.

The Chief Executive Officer of FMO, Mr Jurgen Rigterink, said “The amount, which is a syndicated facility, will increase access to finance for local SMEs and will have an impact on the creation of jobs.