Finance
SMEs in developing world need N324 trn, by IFC
THE International Finance Corporation IFC, the private sector arm of the World Bank Group has estimated the financial needs of small and medium scale enterprises in Africa and other developing countries at more than $2 trillion. This huge financial gap if met will enable these small and medium enterprises create jobs and help end the high level of unemployment in Africa.
At the 2014 Spring Meetings of the IMF/World Bank Group participants at the seminar on Digital Finance and Financial Inclusion organized by IFC, World Bank Group disclosed that more than 2.5 billion people globally do not have access to formal financial services. They have no access to bank services as they operate without any bank account. Of the 2.5 billion, Nigeria accounts for130 million of those without bank accounts. “With a rapidly growing population of over 160 million people, Nigeria remains largely ‘un-banked’ with only 21 per cent of the adult population(11,060,000) having a bank account, while 79 per cent or 128,940,000 have no bank account.
According to data supplied by the International Finance Corporation the private sector arm of the World Bank Group more than three-quarters of the world’s poor lack a formal bank account, mainly because of the costs involved, travel distances and the often-burdensome requirements to open an account.
IFC research findings showed that about 200 million formal and informal micro small and medium enterprises in Africa and other developing countries lack the financing they need to grow. That is half of all businesses in these countries. Their unmet financing needs are estimated to be more than $2 trillion. It is the view of some Africa experts that delivering financial services through technological innovations, including via mobile money, can be a catalyst for the provision and use of a diverse set of financial services – including credit, insurance, savings and financial education.
Worried by this trend and its implication for the growing global poverty; World Bank Group President, Kim during the 2013 Annual Meetings called for a concerted global effort to achieve universal financial access by year 2020. He emphasized that universal access to financial services is within reach, thanks to new technologies, transformative business models and ambitious reforms
Digital finance involves the use of “mobile money” and other innovative financial tools to expand poor people’s access to basic services and utilities. The opportunity for impact is high: nearly 50 percent of people own a mobile phone in the developing world, with close to 70 percent having access to one. Estimates project that an additional 130 million people will start using mobile across the developing world each year by 2017. The mobile money industry continues to grow: with 219 mobile money services in 84 countries, mobile money is now available in most developing and emerging markets. The majority of mobile money services are in Sub-Saharan Africa.
Digital solutions and new technologies offer great potential to overcome massive development challenges and will contribute toward the World Bank Group achieving the goal of universal access to financial services by 2020, according to several speakers at a seminar at the 2014 Spring Meetings. With 2.5 billion people in developing countries deprived of access to formal financial services and more than 200 million small businesses lacking access to the financing they need to grow, expanding access to finance remains a challenge.
“The benefits of digital finance extend well beyond conventional financial services: This can also be a powerful tool and an engine for job creation in developing countries,” said Jin-Yong Cai, International Finance Corporation executive vice president and CEO, as he opened the forum, co-sponsored by IFC, World Bank, and the Consultative Group to Assist the Poor (CGAP).
The forum, moderated by CGAP director and CEO Tilman Ehrbeck, showcased companies that are implementing innovations in digital finance and was followed by a panel of private sector leaders and government representatives who discussed how these innovations can be taken to scale in developing countries.
Innovators from such firms as bKash, Airtel Money-Africa, and Mobisol described how their businesses are tackling major development challenges by deploying various approaches to digital finance. “As millions of poor people use mobile money, like bKash, the poor contribute directly to generating many multiplier effects of the value which can be used in productive activities like funding businesses. This way digital money allows common people to contribute in the nation-building efforts and in the macroeconomics of the nation,” said Kamal Quadir, CEO of bKash.
Delivering financial services through technological innovations, including via mobile money, can be a catalyst for the provision and use of a diverse set of other financial services – including credit, insurance, savings, and financial education. Those who are now excluded can enjoy expanded access to money-transfer services, microloans, and insurance.
“The buzzword ‘digital finance’ is already an everyday reality for our Tanzanian, Kenyan, and Rwandan customers who are using Mobisol Solar Home Systems,” said Thomas Duveau, who leads business development for Mobisol.
“Paying for solar power in small installments through mobile money is not a ‘fancy option’: It’s already the norm for commercial transactions by those at the bottom of the economic pyramid.”
Digital finance also has an important role to play for small businesses. It not only provides them with access to financing but also to electronic payment systems, secure financial products and a chance to build a financial history. Arjuna Costa, partner of Omidyar Network, underscored the importance of digital finance in terms of building the credit history and transactional data of individuals and firms for lenders.
Sandhya Rani, Postmaster-General of Andhra Pradesh State in India, emphasized the huge potential of digital finance on rural development and the role the India Post has played. “With over 155,000 post offices, most of which are in rural areas, we are poised to play a critical role in enhancing financial inclusion, as we are able to effectively deliver a variety of financial services, including banking, insurance, and remittances even in the most remote areas of the country,” she said.
Walt Macnee, President of the MasterCard Centre for Inclusive Growth, pointed out that innovations in electronic payment technology like mobile and prepaid enable people to live more secure, empowered and included lives and that digital money will be the only way to achieve universal access to finance by year 2020.
Chidi Okpala, Director and Head, Airtel Money Africa said: “Leveraging a network of about 140,000 agent locations in 15 countries, Airtel Money is currently leading the charge for massive scale financial inclusion, creating entire cashless payments ecosystems and reducing financial transaction costs across Africa. In less than 30 months, we have expanded the service to 15 countries, achieved an active base of five million customers, with over one million daily transactions. Our aspiration is to ensure 100 million Africans have access to financial services by 2020 via Airtel Money.”
Thomas Duveau, Head of Business Development, Mobisol stated “The buzzword ‘digital finance’ is already an everyday reality for our Tanzanian, Kenyan and Rwandan customers that are using Mobisol Solar Home Systems. Paying for solar power in small installments through mobile money is not a “fancy option,” it’s already the norm for commercial transactions by those at the bottom of the economic pyramid.”
Concluding the session, panelists all agreed that for this type of innovation to be taken to scale, close public-private cooperation is a key factor in removing such barriers as cost, distance, and regulatory complexities.
Finance
Afreximbank successfully closed its second Samurai Bond transactions, raising JPY 81.8bn or $527m
African Export-Import Bank said it has successfully closed its second Samurai bond transaction, securing a total of JPY 81.8 billion (approx. USD 527 million) through Regular and Retail Samurai Bonds offerings.
The execution surpasses the Bank’s 2024 debut issuance size, attracting orders from more than 100 institutional and retail investors, marking a renewed demonstration of strong Japanese investor confidence in the Bank’s credit and its growing presence in the yen capital markets.
On 18 November, Afreximbank priced a JPY 45.8 billion 3-year tranche in the Regular Samurai market following a comprehensive sequence of investor engagement activities leveraging Tokyo International Conference on African Development (TICAD9), including Non-Deal Roadshows (NDRs) in Tokyo, Kanazawa, Kyoto, Shiga and Osaka, a Global Investor Call, and a two-day soft-sounding process which tested investor appetite across 2.5-, 3-, 5-, 7-, and 10-year maturities.
With market expectations of a Bank of Japan interest rate increase, investor demand concentrated in shorter tenors, resulting in a focused 3-year tranche during official marketing.
The tranche attracted strong participation from asset managers (22.3%), life insurers (15.3%), regional corporates, and high-net-worth investors (39.7%).
Concurrently, Afreximbank priced its second Retail Samurai bond on 18 November, a JPY 36.0 billion 3-year tranche, more than double the inaugural JPY 14.1 billion Retail Samurai issuance completed in November 2024.
The 2025 Retail Samurai bond also marks the first Retail Samurai bond issued in Japan in 2025.
Following the amendment to Afreximbank’s shelf registration on 7 November 2025, SMBC Nikko conducted an extensive seven-business-day demand survey through its nationwide branch network, followed by a six-business-day bond offering period.
The offering benefited from strong visibility supported by Afreximbank’s investor engagement across the country, including the Bank’s participation at TICAD9, where Afreximbank hosted the Africa Finance Seminar to introduce Multinational Development Bank’s mandate in Africa and its credit profile to key Japanese institutional investors.
MBC Nikko Securities Inc. acted as Sole Lead Manager and Bookrunner for both the Regular and Retail Samurai transactions. Chandi Mwenebungu, Afreximbank’s Managing Director, Treasury & Markets and Group Treasurer, commented:
“We are pleased with the successful completion of our second Samurai bond transactions, which marked a significant increase from our inaugural Retail Samurai bond in 2024, and which reflect the growing depth of our relationship with Japanese investors.
The strong demand, both in the Regular and Retail offerings, demonstrates sustained confidence in Afreximbank’s credit and mandate.
We remain committed to deepening our engagement in the Samurai market through regular investor activities and continued collaboration with our Japanese partners.”
Ecobank Nigeria, a member of Africa’s leading pan-African banking group, has announced the launch of the Ecobank SME Bazaar—a two-weekend festive marketplace designed to celebrate local creativity, empower entrepreneurs, and give Lagos residents a premium shopping experience this Detty December. The Bazaar will hold on 29–30 November and 6–7 December at the Ecobank Pan African Centre (EPAC), Ozumba Mbadiwe Road, Victoria Island, Lagos. Speaking ahead of the event, Omoboye Odu, Head of SMEs, Ecobank Nigeria, reaffirmed the bank’s commitment to supporting small and medium-sized businesses, describing them as the heartbeat of Nigeria’s economy. She explained that the Ecobank SME Bazaar was created to enhance visibility for entrepreneurs, expand market access, and support sustainable business growth.
According to her, “This isn’t just a market—it’s a vibrant hub of culture, commerce, and connection. From fresh farm produce to trendy fashion, handcrafted pieces, lifestyle products, and delicious food and drinks, the Ecobank SME Bazaar promises an unforgettable experience for both shoppers and participating SMEs. Whether you’re shopping for festive gifts, hunting for unique finds, or soaking in the Detty December energy, this is the place to be.” Ms. Odu added that participating businesses will enjoy increased brand exposure, deeper customer engagement, and meaningful networking opportunities—making the Bazaar a strong platform for both festive-season sales and long-term business growth. The event is powered by Ecobank in partnership with TKD Farms, Eko Marche, Leyyow, and other SME-focused organisations committed to building sustainable enterprises.
The Central Bank of Nigeria (CBN) has said that16 banks have so far met the new capital requirements for their various licences, some four months before the March 31, 2026 deadline. The apex bank also indicated that 27 other banks have raised capital through various methods in one of the most extensive financial sector reforms since 2004. Addressing journalists at the end of the Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Mr Olayemi Cardoso said the banking recapitalisation was going on orderly, consistent with the regulator’s expectations. He said, “We are monitoring developments, and indications show the process is moving in the right direction.” Nigeria has 44 deposit-taking banks, including seven commercial banks with international authorisation, 15 with national authorisation, four with regional authorisation, four non-interest banks, six merchant banks, seven financial holding companies and one representative office.
Cardoso explained that eight commercial banks had met the N500 billion capital requirement as of July 22, 2024, rising to 14 by September of the same year. The number has now increased to 16 as the industry continues to race toward full compliance. He said that the reforms would reinforce the resilience of Nigerian banks both within the country and across the continent. “We are building a financial system that will be fit for purpose for the years ahead. Many Nigerian banks now operate across Africa and have been innovative across different markets. These new buffers will better equip them to manage risks in the multiple jurisdictions where they operate,” Cardoso said. According to him, the reforms would strengthen the financial sector’s capability to support households and businesses. He said, “Ultimately, this benefits Nigerians—our traders, our businesses and our citizens—who operate across those regions. “It should give everyone comfort to know that Nigerian banks with deep local understanding are present to support them. Commercial banks are also creating their own buffers through the ongoing recapitalisation.”
He added that the apex bank considered several factors in determining the new capital thresholds, including prevailing macroeconomic conditions, stress test results and the need for stronger risk buffers. He reassured on the regulator’s commitment to strict oversight as the consolidation progresses. “We will rigorously enforce our ‘fit and proper’ criteria for prospective new shareholders, senior management, and board members of banks, and proactively monitor the integrity of financial statements, adequacy of financial resources, and fair valuation of banks’ post-merger balance sheets,” Cardoso said. He said the CBN remained confident that the banking system would emerge stronger at the conclusion of the recapitalization exercise, with institutions better prepared to support Nigeria’s economic transformation Banks have up till March 31, 2026 to beef up their minimum capital base to the new standard set by the apex bank. Under the new minimum capital base, CBN uses a distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds.
While most banks have shareholders’ funds in excess of the new minimum capital base, their share premium and share capital significantly fall short of the new minimum definition. The CBN had in March 2024 released its circular on review of minimum capital requirement for commercial, merchant and non-interest banks. The apex bank increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion. Others included merchant banks, N50 billion; non-interest banks with national license, N20 billion and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026. Under the guidelines for the recapitalisation exercise, banks are expected to subject their new equity funds to capital verification before the clearance of the allotment proposal and release of the funds to the bank for onwards completion of the offer process and addition of the new capital to its capital base. The CBN is the final signatory in a tripartite capital verification committee that included the Securities and Exchange Commission (SEC) and the Nigeria Deposit Insurance Corporation (NDIC). The committee is saddled with scrutinising new funds being raised by banks under the ongoing banking sector recapitalisation exercise.
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