The US government’s International Development Finance Corporation (DFC) recently deployed USD 280 million in favor of Nigeria’s Access Bank to support about 4,000 small and medium-sized enterprises (SMEs), with a focus on women-owned and “climate-change focused” businesses. US-based Citibank is participating in the funding package in an additional amount up to USD 20 million.
Established in 1989, Access Bank offers corporate, business and personal banking services in 17 countries in Africa and Eurasia with the goal of contributing to “sustainable economic growth that is profitable, environmentally responsible and socially relevant.” For 2021, Access Bank reports after-tax profits of NGN 160 billion (USD 380 million) on total assets of NGN 12 trillion (USD 29 billion).
DFC was initiated in 2020 to “help businesses expand into emerging markets, foster growth and improve lives in the developing world while reinforcing US foreign policy and national security interests.” The organisation issues equity placements, loans, guarantees, insurance, technical assistance and research in sectors such as energy, medicine, infrastructure and technology. During 2021, DFC brought in net income of USD 162 million, closing the year with assets of USD 15 billion.
Citibank is a unit of Citigroup, which is headquartered in the city of New York. Citigroup offers consumer and commercial banking, brokerage, asset management, and institutional securities and transactions services. It carries out its philanthropic activities, including a financial inclusion initiative, through the Citi Foundation. Citigroup serves approximately 200 million customers in 160 countries as of 2021. As of July 2021, it reported quarterly return on assets of 1.68 percent and return on equity of 13.0 percent on total assets of USD 2.33 trillion.
By Ben Greissman, Research Associate
Sources and Additional Resources
DFC press release
https://www.dfc.gov/media/press-releases/dfc-commits-280-million-financing-access-bank-boosting-small-businesses
DFC project summary
https://www.dfc.gov/sites/default/files/media/documents/9000104932_0_0.pdf
Access Bank homepage
https://www.accessbankplc.com
Access Bank annual reports
https://www.accessbankplc.com/pages/Investor-Relations/financial-reports/Annual-Reports.aspx
Citibank homepage
https://www.citi.com
Previous MicroCapital article on DFC
https://www.microcapital.org/microcapital-brief-dfc-gazelle-finance-announce-technical-assistance-funding-for-smes-displaced-from-ukraine-to-georgia-by-war/
Previous MicroCapital article on Citibank
https://www.microcapital.org/microcapital-brief-citi-dfc-announce-15m-local-currency-loan-to-came-of-mexico-to-boost-financial-inclusion-of-40000-smes/
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