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Kenya’s Sidian Bank launches water-focused COVID-19 loan facility for MSMEs
Kenya-based Sidian Bank has announced that it will be partnering with Aqua for All to facilitate the scale up and sustainability of MSMEs specifically in the water, sanitation and health sector by tackling the main issue that SMEs face and providing financing facilities worth over 4 million euros with subsidised interest rates to help cushion the effects of COVID-19. CNBC Africa spoke to Catherine Kisamwa, Head of Microbanking at Sidian Bank for more.
Wed, 19 Aug 2020 10:46:19 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Sidian Bank partners with Aqua for All to launch a loan facility worth over 4 million euros to support MSMEs in the water, sanitation, and health sector during the COVID-19 pandemic.
- The 'COVID-19 wash loan' provides financing for post-import, working capital, Local Purchase Order, and asset financing to micro, small, and medium-sized enterprises, as well as corporate entities like water service providers.
- The bank's previous successful loan allocation from Oiko Credit and continued commitment to lending exemplify its dedication to bolstering the Kenyan economy and aiding businesses through challenging times.
Kenya-based Sidian Bank has made a groundbreaking announcement by partnering with Aqua for All to enable the scale-up and sustainability of Micro, Small, and Medium Enterprises (MSMEs), particularly in the water, sanitation, and health sector. The aim is to address the key challenges faced by SMEs and provide financing facilities worth over 4 million euros with subsidized interest rates to alleviate the impacts of the COVID-19 pandemic. CNBC Africa had the opportunity to speak with Catherine Kisamwa, the Head of Microbanking at Sidian Bank, to delve deeper into this innovative initiative. The partnership between Sidian Bank and Aqua for All has roots back to the 1990s, when Sidian Bank began funding community water projects in collaboration with the Water Bank and USID. This longstanding commitment to water sanitation laid the foundation for future endeavors in providing financial support. Aqua for All, an NGO based in the Netherlands, has been operating in Kenya for a significant period, extending its support to various businesses and initiatives. The organization's established presence in the Kenyan market paved the way for a mutually beneficial partnership with Sidian Bank. In 2017, Sidian Bank, represented by Catherine Kisamwa, received a prestigious nomination from Wild Water Week, a distinguished award in the Netherlands sponsored by Aqua for All. This historic background set the stage for the collaboration between Sidian Bank and Aqua for All to address the challenges arising from the COVID-19 pandemic and provide a financial safety net for SMEs, cooperatives, and micro-enterprises. The newly launched loan facility, known as the 'COVID-19 wash loan,' encompasses post-import financing, working capital financing, Local Purchase Order financing, and asset financing within the water and sanitation space. This facility is inclusive, catering to micro, small, and medium-sized enterprises, as well as corporate entities, including water service providers. The primary objective of the loan is to ensure that businesses have the necessary resources to continue their operations, especially in the crucial sectors of water and sanitation. With a substantial allocation of 4 million euros, the Sidian Bank and Aqua for All partnership aims to reach a broad spectrum of customers, maximizing the positive impact on society. The allocation process will prioritize inclusivity, targeting a diverse range of businesses to create a meaningful difference within the market. Reflecting on past achievements, Sidian Bank successfully utilized a 600 million Kenyan shilling loan from Oiko Credit, with the second half amounting to 300 million, which was decisively allocated to over a thousand SMEs and micro-enterprises. Amid the challenges posed by the pandemic, Sidian Bank remains resolute in its commitment to supporting businesses and fostering economic growth in Kenya. With a solvent financial position, the bank continues to extend its lending services to both existing customers and new clients seeking financial assistance. This steadfast dedication is evident in the proactive approach adopted by Sidian Bank to ensure that Kenyan enterprises thrive and overcome the obstacles presented by the current global crisis.
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