IFC, a member of the World Bank Group, has announced that it will extend a seven-year ZAR 740 million (US$61.8m) term loan to Mercantile Bank Limited, to allow the bank to grow its lending to South African small and medium enterprises, with a focus on women-owned SMEs.
The financing falls under the IFC SME Push Program, an initiative to expand lending and strengthen support for small and medium enterprises by the formal banking sector. The SME Push Program will channel up to ZAR 40 billion (US$3 billion) investment into South African SMEs over the next 5-7 years through a comprehensive package, including investments, risk-sharing facilities and advisory services. The program was developed to complement government policies promoting lending to small and medium enterprises and to spur job creation in South Africa.
