Strengthening financial services

Access to finance for those who need it most

One way we partner with financial institutions, to ensure that our investment reaches those who need it most, is through ‘directed lending’. This means we lend to financial institutions to encourage lending to specific customer groups. In 2024, this included providing financing to KCB Bank Kenya to increase its capacity to lend to climate-related projects as well as women-led small and medium-sized enterprises. In Bangladesh, our commitment to BRAC Bank will be used as a directed lending line to provide finance for MSMEs and women-owned and -led businesses in the country (see case study).

We’ve also sharpened our focus on strengthening financial services in countries most in need of our support. One example is our risk-sharing arrangement with Ecobank Sierra Leone, which will help the bank offer more local currency loans to growing businesses, helping to create more jobs and increase private sector support for Sierra Leone’s economy (see case study).

Facilitating trade to increase economic growth

Trade finance is another way we work with banks to support local businesses and economies. Since 2015 our trade finance portfolio has supported $31.4 billion of trade across more than 10,000 transactions. During 2024, we supported $1.6 billion of trade across more than 1,300 transactions. This included partnering with Standard Chartered on a $350 million trade finance facility for emerging markets. We first partnered with Standard Chartered in 2013 when we signed a $75 million risk participation agreement that was extended to reach almost $400 million. The agreement facilitated over $10 billion in trade across Africa and South Asia, including Kenya, Tanzania, Nigeria, Bangladesh, Pakistan and Nepal. The renewed facility will support businesses in the region by providing access to trade finance, enhancing their export capabilities and fostering growth.

Supporting more customers to access finance

In 2024, the gross loan portfolio of our financial sector investments, converted to US dollars, stood at $102.8 billion. This was lower compared with 2023, driven by a combination of factors including the exit of significant financial institutions such as I&M Bank, and fluctuations in foreign exchange rates. Despite the slight reduction in gross loans, the number of customers reached by our investments has risen to 150 million. This is in part due to investees providing smaller loans to a larger customer base.

One example of a company undergrowing rapid growth is TymeBank in South Africa (see case study). It’s the first digital bank to reach profitability in Africa, surpassed 10 million customers in less than six years, earning the title of South Africa’s fastest-growing bank in 2024. It is delivering financial products to millions of people who have historically been excluded from accessing such vital services.