Share the page
South Africa: supporting SMEs affected by the Covid-19 crisis
Project
-
Signature date
-
-
Location
-
South Africa
-
Financing tool
-
Financing amount (Euro)
-
17749378
-
Financing details
-
USD 20m loan
-
Customer
-
ABSA BANK LTD
-
Type of customer
-
Financial institution
-
Country of headquarters
-
South Africa
-
Project number
-
PZA1114
-
Environmental and social ranking
-
IF-B
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has partnered for the first time with ABSA to support the bank’s SME financing activity, particularly for SMEs affected by the health crisis.
Client presentation
ABSA Bank Limited (ABSA) is the South African subsidiary of ABSA Group, one of the five leading African banking groups. The Group operates in all the client segments and carries out most of its business (over 80%) in South Africa. It also operates in Botswana, Ghana, Kenya, Mauritius, the Seychelles, Tanzania, Uganda and Zambia. ABSA is the third largest bank in South Africa and has nationwide coverage: it serves some 9.7 million clients.
During the Covid-19 crisis, ABSA was one of the first banks to announce a massive support plan (Covid-19 Payment Relief Plan) for its clients (SMEs, individuals and corporates).
Project description
Proparco has partnered with ABSA Bank Limited, by allocating it a USD 20m senior loan to contribute to its business support plan in a difficult economic context following the Covid-19 crisis.
Proparco’s loan aims to finance SMEs operating in sectors affected by the crisis, such as construction, industry, transport, tourism and wholesale and retail trade.
Project impact
This operation will allow ABSA to play a countercyclical role, by continuing to support the financial sector and SMEs in South Africa during an unprecedented economic crisis caused by the Covid-19 pandemic.