BancABC Botswana is part of the group with the same name which operates in Southern Africa. It is a subsidiary of Atlas Mara, a long-term partner of Proparco. Since 1986, it has gradually been transforming its activity into a fully-fledged commercial bank. ABC is the 4th or 5th leading bank in the country. Among these 5, ABS is the only one that is not a subsidiary of a major international banking group. With its recent listing on the Botswana Stock Exchange, it is considered as a local People’s Bank.
For this 1st financing in Botswana, Proparco wanted to support BancABC’s strategy to diversify towards a corporate and SME customer base. This financing is strengthening the bank’s regulatory capital and providing it with resources for its development. It is part of extensive support to this bank. Indeed, it is subsequently planned to provide it with technical assistance and ARIZ guarantees.
This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy.
This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).
The expected impacts of this financing are as follows:
- Support for over 650 direct jobs over the next five years (including over 400 jobs held by women), as well as some 4,100 indirect jobs in the 32 SMEs and 11 corporates potentially supported by BancABC through Proparco’s financing.
- A 66% increase in the SME client base of BancABC, which should have some 330 SMEs in its portfolio over the next five years.
This project is part of the 2X Challenge initiative
This information is given at the time of signature, without prejudice to any developments in the operation/project