Although financial inclusion has recently improved in West Africa, small businesses in the region still consider financing a major barrier to their growth. This new partnership intends to change this dynamic by providing loans.

The International Finance Corporation (IFC) recently partnered with Orange Bank Africa, the digital bank of the Orange Group. The World Bank’s private sector arm made the announcement last Monday, July 3. The move, according to the source, aims to effectively and sustainably support, financially, small businesses in West Africa, including those in rural areas.

"This innovative investment demonstrates our firm commitment to leverage the power of digital financial services, especially in regions where financial inclusion remains limited. It also has the potential to set a precedent in digital lending," said Olivier Buyoya, IFC's Regional Director for West Africa.

Under the partnership, the IFC will partly cover loans made by Orange Bank Africa to micro, small, and medium-sized enterprises (MSMEs), in Ivory Coast, first, then in Senegal, and other West African countries, once the digital bank has received approval to operate there.

In detail, the IFC will cover 50% of the $30 million in loans that Orange Bank Africa will provide in the form of microcredits accessible via mobile to its clientele of small businesses and individuals. The bank, which has been operating in the Ivorian market since July 2020, also plans to allocate "larger loans" to local actors in the creative industry. This will enable the 100% digital bank to distribute an additional 300,000 loans by 2025.

According to Jean-Louis Menann-Kouamé, CEO of Orange Bank Africa, the partnership will accelerate the financing of MSMEs with concrete solutions, thus bolstering their productivity, making them more competitive on local and international markets, and creating jobs.

A year ago, in July also, the IFC inked a first agreement with Orange Bank Africa, to increase access to financing for agents and traders operating in the mobile money ecosystem in West Africa.

Samira Njoya