Canadian development financier FinDev Canada has provided a US$40 million loan to Stanbic IBTC Bank, a subsidiary of Africa’s largest bank Standard Bank Group, to support sustainable and gender-inclusive financial initiatives in Nigeria.
The loan will enable the bank to expand access to finance for critical sectors like agriculture, healthcare, education and climate change mitigation. At least 30% of the loan is specifically earmarked for women-owned or led businesses, aiming to bridge the persistent gender gap in financial access. It will also increase access to finance for micro, small and medium-size enterprises, and financing for climate change mitigation and adaptation.
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 honoured 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,” Adeniyi 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.
FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and knowledge, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs) aligned with the Sustainable Development Goals (SDGs) and Paris Agreement commitments. FinDev Canada is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada at www.findevcanada.ca.
Stanbic IBTC Holdings is the leading end-to-end financial solutions provider in Nigeria, offering a wide range of products and services across corporate, business, and personal banking, stockbroking, insurance, and asset management. The recent establishment of its fintech subsidiary, Zest Payments, further underscores its commitment to provide innovative financial solutions. Stanbic IBTC plays a pivotal role in driving Nigeria’s growth, leveraging deep local insights and international expertise enhanced by being a member of Standard Bank Group, Africa’s largest bank by assets. Find out more about Stanbic IBTC on www.stanbicibtc.com.
The 2X Challenge was founded in 2018 by the development finance institutions (DFIs) from the G7 as a call to action 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. More information about the 2X Challenge can be found here: https://www.2xchallenge.org