Fidelity Bank Ltd and FMO boost support to Ghanaian SMEs
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Fidelity Bank Limited based in Ghana and the Netherlands Development Finance Company (FMO) signed a USD 15m senior long-term loan. With the loan from FMO, Fidelity Bank is able to strengthen its position in the Ghanaian market by making available long term USD funding to local Ghanaian companies to grow their business and the economy.
Fidelity Bank provides services to individuals, private enterprises and institutional clients. The bank grants credit to a broad array of productive business segments in the Ghanaian economy, including manufacturing, construction, electricity, gas and water, commerce and finance, transport, storage, communication and services. Today, Fidelity Bank has 20 branches and has doubled its customer base in the last twelve months to over 100,000 customers. The bank is expected to increase its branch network to 25 branches by year end 2010 with presence in all major cities in Ghana, including Accra, Tema, Kumasi, Takoradi and Tamale.
With oil production starting up, Ghana’s economy is expected to receive a boost that will drive demand for working capital. Although the banking sector is generally liquid, long term USD funding is very scarce for Ghanaian banks and therefore for the companies that generate USD income. With the loan from FMO, Fidelity Bank is able to strengthen its position in the Ghanaian market by making available long term USD funding to local Ghanaian companies.
Ruurd Brouwer, Director Financial Institutions at FMO, comments: “The private sector and strong entrepreneurship are drivers for economic development. Fidelity Bank has demonstrated over the recent years that it can support these entrepreneurs by providing the right products. We share a clear vision and commitment to sustainable development. Focusing on doing business responsibly has many benefits. For clients, it means a competitive advantage and improving performance. For local communities, it means better working conditions, improved quality of life, a healthier environment and increased prosperity. Fidelity Bank is very committed to further improving its environmental, social and governance standards. FMO will support the bank with implementing new standards”.
Mr. Daniel Marfo, Director of Corporate Banking at Fidelity Bank, expressed satisfaction with the bank’s partnership with FMO. “Fostering private sector development is an area in which the Bank acknowledges the need to play an increasingly active role. Fidelity Bank hopes to make a significant contribution to the economy by promoting the development and growth of a vibrant, productive and competitive SME sector. FMO has been a significant contributor to the success of the Fidelity Group, and we believe that this facility marks a new value creation venture for our relationship and cherished customers”.« Back to headlines