African Banks Invest N575.62bn To Boost MSMEs, Retail Sectors

Several leading banks in Africa are set to invest N575.62 billion to support micro, small and medium sized enterprises (MSMEs) across the continent.

This move is part of their effort to meet new capital requirements set by the Central Bank of Nigeria (CBN).

Access Holdings, Fidelity Bank, Guaranty Trust Holding (GTCO), FCMB Group, and Zenith Bank are all increasing their capital bases. The CBN has instructed commercial banks to raise their capital to between N50 billion and N500 billion, depending on their reach.

Access Holdings is taking the lead, dedicating N223.01 billion of its total N343.09 billion net proceeds to local and international business growth. Out of this, N154.39 billion will go to corporate and commercial sectors, N51.46 billion to retail, and N17.15 billion to MSMEs.

GTCO will invest N133 billion from its N400 billion proceeds into various business sectors. Additionally, the bank plans to spend N138.5 billion on expanding its branch network and N98.5 billion on upgrading technology.

Zenith Bank is raising N185.14 billion by offering new shares. It will allocate N68.5 billion to loans for corporate entities, MSMEs, and retail customers. The bank is also boosting its working capital to support its growth.

Fidelity Bank is investing N66.53 billion of its N95.05 billion proceeds into regional and business expansion. This includes N14.3 billion for MSMEs loans and N40.4 billion for corporate and commercial growth.

FCMB Group is using N84.57 billion from its N108.11 billion proceeds for loans to corporate, MSMEs, and retail sectors. The group is also setting aside N10.27 billion for agricultural and non-oil export sectors, reflecting its focus on diversification.

These investments highlight the banks’ commitment to fostering growth in Africa’s vital MSMEs sector. In channelling funds into business expansion, lending, and technology, these banks aim to make a significant impact on the continent’s financial landscape.