Barclays Africa said it plans to raise 1.3 billion rand ($88 million US) to fund loans for small and medium enterprises at a time when U.K.-based parent Barclays plc is selling down its stake in the group.
The bank said the funding is part of a “shared growth” strategy towards improving socioeconomic conditions in 12 African markets where it operates, IndependentOnline reported.
Barclays Africa CEO Maria Ramos said the bank will raise the funds with corporate partners, development finance institutions and global financial bodies by the end of this financial year to let SMEs do business with the bank and its clients.
SMEs involved in producing and supplying goods and services to Barclays clients will be able to apply for loans, said KeaObaka Mahuma, head of Barclays Africa’s enterprise and supply chain development.
The idea is to raise funds and make loans at attractive rates, Mahuma said.
So what’s an attractive interest rate in Africa?
Sub-Saharan Africa has some of the highest interest rates in the world, offering high rates of return for investors, CountryRankers reported.