The International Finance Corporation (IFC), of the World Bank group, has partnered the Banco Internacional de São Tomé e Principe (BISTP) to support lending to small and medium enterprises in the archipelago, said the bank.

The funding to be provided by the IFC, of US$3 million donated by Japan, is intended to share the risk of lending to small and medium entrepreneurs on Sao Tome and Principe by the BISTP.

The bank said in a statement issued in Sao Tome that the partnership, “as well as filling a gap in terms of business financing,” will “provide venture capital and loans to small businesses” in order to expand, modernise and stimulate job creation on the archipelago, where two thirds of the population live on less than a dollar a day.

“Small and medium businesses need greatly to improve their products and services in order to better serve the national and international markets and this risk-sharing mechanism with the IFC creates an opportunity to do so,” said the statement. (macauhub/ST)