An experienced partner to financial institutions
“With DEG on hand as our cooperation partner, Access Bank has become one of Africa's largest banks. We finance SMEs and promote further development of German-African trade relations.”
Herbert Wigwe Group Managing Director and CEO of Access Bank in Nigeria
Banks, insurance companies and special finance providers like leasing companies which operate in developing countries need a reliable partner with specialist know-how. We offer them financing as needed and weigh in with in-depth knowledge. We also offer Business Support Services (BSS) designed to provide our customers with targeted assistance – for example with risk or liquidity management, or environmental and social governance systems.
Many of our customers in the financial sector have small and medium-sized enterprises among their own clients. We advise them on sustainable ways of expanding their SME business. Small and medium-sized companies are a driving force for development in many countries, often generating more than half of the gross domestic product. Yet it is often particularly difficult for them to gain access to long-term loans for investments. That is why we make a point of investing in financial intermediaries that in turn provide capital to SME customers, thereby reaching about 2 million SME in developing countries.
More lending to SME in Cambodia
Especially during the time of the corona pandemic it is all the more important that small and medium enterprises continue to have access to loans. To facilitate access in Cambodia, DEG provided Cambodian Acleda Bank Plc. with a long-term loan of USD 15 million in April 2020. The financing will enable ACLEDA to expand its digital banking services. The DEG loan is part of a two-phase funding tranche from the International Finance Corporation (IFC). In the first round of funding in 2019 DEG had already committed USD 20 million to ACLEDA.
ACLEDA’s success story started in 1993 when the non-governmental organisation at the time provided funding to micro businesses. With around 260 offices in Cambodia and more than 12,000 employees, Acleda today has around 400,000 customers. Their customers include above all small and medium enterprises; and more than half of the businesses are run by women. DEG has been supporting ACLEDA for 20 years, initially as a shareholder, later as a lender.
“Access Bank is specifically committed to female entrepreneurship. Thanks to a credit line from DEG I received financing and was able to develop Ruff 'n' Tumble into the leading children's clothing brand in Nigeria. Now I employ 250 people and own 15 shops.”