International Financial Corporation promotes loans to SMEs in Mozambique, Ethiopia and Tanzania

9 March 2010

Washington, USA, 9 March – The International Financial Corporation (IFC) has concluded a programme of cooperation with the central banks of Ethiopia, Mozambique and Tanzania with a view to improving the quality of credit risk assessment in Africa, the IFC said Friday.

In a statement the IFC, an arm of the World Bank group for the private sector, said that the absence of credit risk assessment limited the availability of financial services offered by retail banks, as well as the fact that smaller companies lose out as they have no way of establishing their creditworthiness.

The IFC sponsored a number of regional meetings that brought together central banks, financial institutions, national associations of bankers and retail banks which began on 1 March in Addis Ababa, Ethiopia and ended last Friday in Maputo, Mozambique.

African economies are markets where individuals and companies have great difficulty accessing credit, with the “Doing Business 2010” report from the IFC-World Bank ranking Tanzania in 87th place, and Ethiopia and Mozambique in joint 127th place.

The statement also said that it was a priority to make access to credit easier for small and medium-sized enterprises, and that this should be a fundamental goal of the governments and central banks.

In the case of Mozambique the IFC said that credit to SMEs should increase by US$15 million and benefit 3,750 small and medium-sized companies. (macauhub)