SMEs Need Long-Term Capital For Growth – MD

The Managing Director, Standard Chartered Bank, Mrs Bola Adesola has said that long-term capital is required to catalyse the growth in Small and Medium Enterprises and make them more viable and sustainable.
She said that many companies could not just survive on debt, because of the cost of such debts, and, therefore, will need long-term capital.
Adesola who disclosed this to journalists on Friday at the Port Harcourt Airport while reacting to input of financial institutions on agriculture and small enterprises development, noted that banks were making inputs for SMEs in a sustainable way.
She disclosed that there had been a contribution of N26 billion in equity fund, while the bankers committee was still working on framework and looking at partnerships.
“The banks have contributed five percent of our Profit After Tax (PAT) to a fund in CBN towards contributing equity to agric and SMEs.
We are looking at co-investing with private equity firms as well, and the objective is to catalyse growth in SMEs to ease access to finance to build capacity in the agriculture and SMEs sector to create jobs and ultimately improve prosperity.
“The economic development of the bankers committee is working with development finance and legal department and supervision in the CBN.
“We also want to ensure that we have the right governance around the equity fund and it is our own contribution to economic growth and prosperity in the country,” she said.

Corlins Walter