First National Bank (FNB) says its parent company, FirstRand, and the International Finance Corporation (IFC) have concluded a loan agreement in the amount of $200 million (R2.6 billion).<\/p>\n
The loan is aimed at magnifying lending and support for the SME sector in South Africa, where FNB is a leading player.<\/p>\n
In an effort to promote growth of the SME sector, the IFC has developed the SME Push Program to channel $2-3 billion (around R26-39 billion) of a wide range of investment into South Africa\u2019s SMEs over the next 5-7 years.<\/p>\n
\u201cSMEs are one of the most powerful contributors to sustainable economic growth. In South Africa, the sector contributes about 40% to the country\u2019s GDP,\u201d said Mike Vacy-Lyle, CEO of FNB Business.<\/p>\n
The National Development Plan 2030 estimates that South Africa needs to have 8 million active SME\u2019s in order to achieve set targets of creating 11 million jobs by 2030.<\/p>\n
The SME Push Program is designed to align with government policies in order to assist in gearing South Africa towards these set goals.<\/p>\n