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Swedfund, a Swedish state-owned development finance institution, has announced its investment of $30 million in Access Bank Plc, one of Nigeria’s largest commercial banks.

According to a statement by Swedfund, the investment aims to reach underserved micro, small and medium enterprises (MSMEs) at scale. By providing long-term capital and capacity building to unbanked and under-banked companies in Nigeria, the investment is expected to support sustainable private sector development and inclusive growth.

Nigeria, with a population of estimated at over 220 million, has an unemployment rate of 5% according to the National Bureau of Statistics, the Nigerian state-owned statistics agency. Additionally, over half of the rapidly growing population is below the age of 30, which further exacerbates the need for job creation and workforce development. As Nigeria also copes with a multitude of crises, including insecurity, food shortages and inflation, the resilience and power of MSMEs is critical to driving sustainable development and reducing poverty.

“Swedfund’s investment aids in advancing sustainable private sector development, encouraging inclusive growth, and expanding access to finance,” says Kitanha Toure, Regional Director of West Africa at Swedfund. “Access Bank, known for its strong market presence and with a committed MSME strategy, serves as an effective partner to reach MSMEs in need of financing in Nigeria.”

Swedfund said Access Bank is systemically important and well-positioned to reach a significant number of MSMEs in Nigeria. Swedfund’s investment will contribute to direct and indirect job creation and other tax-generating activities as well as improved access to finance for rural and underserved groups, female- and youth-owned companies.

Access Bank is eligible to meet the 2X Criteria, a global baseline standard for gender finance, and recognised as the best SME bank for women entrepreneurs in Africa.

The loan is part of a syndicate led by the Dutch development finance institution, FMO, with a total value of $295 million. The syndicate consists of other Nordic and European development finance institutions such as BII, BIO, Finnfund och Norfund.