• IFC leads package with support from Proparco, BII, OPEC Fund

• Programme could finance at least 1,500 SMEs over four years

Rawbank said on Wednesday it had secured $265 million in financing to expand lending to small and medium-sized enterprises (SMEs) in the Democratic Republic of Congo.

The financing package is led by the International Finance Corporation (IFC) and supported by Proparco, British International Investment (BII), the eco.business Fund and the OPEC Fund for International Development.

The programme aims to expand SME access to credit, support private sector growth and create jobs in the country, Rawbank said. According to the IFC, the initiative could help finance at least 1,500 additional SMEs over the next four years, particularly in sectors such as telecommunications and fast-moving consumer goods.

“This operation represents a strategic allocation of international capital toward a local intermediary bank recognised for its ability to channel these resources into productive lending,” said Mustafa Rawji, chief executive officer of Rawbank. “The aim is to finance more Congolese SMEs, strengthen local production and support the creation of sustainable jobs across the country.”

Two-part financing structure

The transaction is based on two main mechanisms.

The first is a $165 million senior credit facility arranged by the IFC, including $50 million provided directly by the institution. The remaining $115 million was mobilised from financial partners: Proparco ($50 million), the eco.business Fund ($20 million), the OPEC Fund ($20 million) and British International Investment ($25 million).

The second component is a $100 million risk-sharing facility between the IFC and Rawbank. Under this arrangement, the IFC will cover 50% of the exposure, or $50 million, allowing Rawbank to extend credit to a larger number of SMEs.

The mechanism is supported by the European Commission and the International Development Association (IDA) through the Small Loan Guarantee Program.

In addition to the financing, the IFC will also provide advisory services to help strengthen Rawbank’s capabilities in areas including climate finance, agricultural finance and support for women entrepreneurs.

Additional support for SME financing

According to Rawbank, the deal is “the largest transaction ever arranged by the IFC for a financial institution in the DRC.”

The operation forms part of the bank’s strategy to expand financing for Congolese SMEs. Rawbank participates in the “20,000 SMEs” programme, which has a $200 million budget and aims to integrate local businesses into the supply chains of large companies operating in the DRC.

As part of this initiative, Rawbank works with the Private Sector Subcontracting Regulatory Authority (ARSP) and the Guarantee Fund for Entrepreneurship in Congo (FOGEC) to expand access to credit for local businesses.

Ronsard Luabeya, with Bankable