Barclays Africa reaffirmed its commitment to improve economic and socio-economic growth in Africa. The group presented a $182 million project to reinforce skills and finance loans to SMEs in the region. “Real development means access to capital, to business development expertise and corporate procurement chains,” Barclays Africa’s chief executive Maria Ramos, told the press in Johannesburg.

R1.3 billion ($89 million) will be mobilized to fund loans to SMEs, in all the countries where Barclays Africa operates. These funds will be raised by its corporate partners, development financial institutions and global financial bodies. “Raising the R1.3bn is not the challenge. The challenge is to get the right pipeline of projects,” said Ramos.

In the current African context, it not always evident for SMEs, which sometimes lack guarantees and collateral, to secure loans at affordable rates. Barclays Africa here plans to make a difference by lending money to some of these businesses, which are often considered as marginal.

Regarding the money disbursed to reinforce skills, Barclays should spend about $93 million. The group based its decision on the hypothesis that one of the causes of rising unemployment in South Africa and in the region is the deficit in skills. Barclays deduced this after conducting about a year ago a survey in Africa to see what unemployed youth would do if given $100. Most of the surveyed population said they would fund their education.

Idriss Linge