ABC Holdings (ABCH) has secured a $50 million line of credit from the African Development Bank (AfDB) to be offered as medium-to-long-term loans for the small and medium enterprises (SMEs) in three countries including Zimbabwe.
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The line of credit was approved by AfDB’s board of directors on Thursday and has a tenor of seven years.
ABCH subsidiaries in Zimbabwe, Mozambique and Botswana will benefit from the line of credit.
ABC Holdings Ltd (ABCH) is a rapidly growing financial institution targeting local small and medium enterprises (SMEs) in these countries covering various sectors such as construction, agriculture, manufacturing, transport and services.
ABCH is gradually increasing its SME portfolio share targeting 30% by end 2018 as it plans to expand its retail network across countries,” AfDB said.
It said the line of credit would enable ABCH and its three selected subsidiaries to reach a larger number of SMEs across a wide range of sectors by offering medium- to long-term loans, which are not currently accessible for local SMEs.
AfDB will provide local currencies, Botswana pula and Mozambique metical to support local currency lending and promote development of the financial sector in these countries.
“This facility will also cover Zimbabwe where many enterprises face liquidity challenges.
“The facility is expected to support at least 200 SMEs and generate 800 jobs, including 400 jobs for women, during the period of the project,” AfDB said.
“Leveraging the relatively long tenor of the AfDB facility, it is expected to increase the average loan tenor for SME clients who can consequently expand their business, which will promote inclusive growth of these countries.”
ABCH is a pan-African banking group with operations in Zimbabwe, Botswana, Zambia, Mozambique and Tanzania.
It is 98,7% owned by Atlas Mara — a company co-founded by ex-Barclays chief executive officer Bob Diamond and billionaire entrepreneur Ashish Thakkar.