Micro, small and medium-sized enterprises (MSMEs) in Botswana are set to receive a financial boost from the OPEC Fund for International Development’s partnership with Access Bank Botswana via a loan of $20 million.

This financing is the first private sector loan from the OPEC Fund in the country.

At least 30% of the funding will be allocated towards businesses owned by women, with 70% to be provided for on-lending to local businesses.

The funds will help to address the financing access gap faced by a large number of MSMEs in Botswana, Zawya reports.

The agreement was signed this week during the OPEC Fund Development Forum in Vienna. OPEC Fund Director-General Abdulhamid Alkhalifa stated: “This loan demonstrates our commitment to promoting economic growth, gender equality and financial inclusion. By empowering small businesses and women entrepreneurs, who play a significant role in Botswana’s economy, we are contributing to the resilience, inclusiveness and overall economic sustainability of the country.”

Whereas, Access Bank Botswana Acting Managing Director Musonda Chishimba added: “This partnership will enable Access Bank Botswana to deliver much-needed access to finance for small businesses, provide these businesses with trade finance solutions through tailored financial products and promote the use of digital banking channels to help accelerate the growth of SMEs across the country. Investing in SMEs, the bank can drive sustainable economic growth, reduce unemployment and build a resilient economy for the future.”

The OPEC Fund’s financing is in alignment with several Sustainable Development Goals (SDGs), such as SDG 5 (Gender Equality), SDG 8 (Economic Growth) and SDG 9 (Resilience, Inclusiveness, and Sustainability).

In addition, Access Bank Botswana is aiming to increase the percentage of businesses owned by women within its portfolio from 20% to 25% of the total MSME portfolio, the Zawya report adds.

Dr Alkhalifa continued: “South-South Cooperation is one of the OPEC Fund’s founding principles and core values. We are proud to further create value for one of member countries by supporting a Nigerian company to contribute to the sustainable development in a partner country of the OPEC Fund.”