INTERNATIONAL Finance Corporation (IFC) has partnered with BRED Bank Vanuatu and BRED Bank Solomons to improve access to financing for Small and Medium-sized Enterprises (SMEs), encouraging economic growth and job creation in both nations.
“Many SMEs in Vanuatu and Solomon Islands struggle to access the capital they need to grow, hire, innovate, and fully contribute to their economies,” said Allen Forlemu, IFC’s Acting Regional Vice President for Asia and the Pacific.
“With this investment, IFC aims to increase lending to SMEs and commercial segment borrowers in Vanuatu and Solomon Islands and reduce the financing gap in both countries through clear actions to drive economic growth and create jobs.”
SMEs and commercial companies drive economic growth and job creation in both countries but face increasing challenges in accessing capital to innovate and expand, exacerbated by natural disasters.
IFC will offer an unfunded risk-sharing facility of up to $10 million to BRED Vanuatu and Solomon through its Small Loan Guarantee Programme, supported by IDA’s Private Sector Window.
This will help them boost business loans, with IFC also providing advisory services for expansion.
“As the leading bank in Vanuatu and a growing presence in Solomon Islands, BRED is uniquely placed to help drive growth and resilience across SME and commercial markets,” said Owen Thomson, CEO of BRED Solomon Islands.
“BRED and IFC have a long-standing global strategic partnership with a successful track record of collaborating on projects.
“We welcome this investment, which will enable us to expand our business-segment financing portfolio in Vanuatu and Solomon Islands, supporting the small businesses that are fundamental to growth in these economies.”