Absa Secures Sh13bn Loan Loss Cover from IFC for Trade Finance Boost
In a significant move to enhance trade finance in fragile economies, the International Finance Corporation (IFC) has agreed to provide a Sh13bn loan loss cover to Absa. This partnership aims to support small businesses and refugees in 14 fragile countries, fostering economic growth and stability. By mitigating the risk of loan defaults, the IFC's loan loss cover will enable Absa to extend more credit to these critical sectors, thereby promoting financial inclusion and economic development. The agreement is part of the IFC's efforts to increase access to finance for underserved communities, and it is expected to have a positive impact on trade finance and economic growth in the region. With this loan loss cover, Absa will be able to provide more trade finance solutions, including supply chain finance and letters of credit, to small businesses and refugees, helping them to access new markets and opportunities. This initiative is also expected to contribute to the United Nations' Sustainable Development Goals (SDGs), particularly SDG 8, which focuses on promoting decent work and economic growth. Key terms like trade finance, financial inclusion, and economic development are expected to benefit from this partnership.
