Barclays Bank has launched Ksh 135 million Enterprise Supply Chain Development with an aim of helping SMEs that supply goods and services to corporate organizations get access to funding to enable them fulfill orders and increase competitiveness.
This is yet another victory for SMES who are struggling to fund their purchase orders from corporate companies. Under this program, Barclays Bank has recognised that for Kenya’s economy to grow-the prevailing macroeconomic circumstances notwithstanding- they needed to find creative ways to contribute to the growth of the SME sector.
Their aim is not only to deliver their shareholders value but to have a positive impact on the society. By growing small businesses, Barclays Bank not only uplifts the lives of the entrepreneurs but also their workers. They are
What does the ESD involve?
ESD involves partnerships with their corporate clients to develop SMEs in their supply and distribution chains. It is anchored on 3 pillars:
- Financial inclusion
- business development through training
- access to markets.
Financing is on a closed loop contractual based lending which unlocks lending to SMEs in Corporate value chains with the lending being done on the back of confirmed contracts.
Barclays Africa has set aside approximately Kshs.310million to pilot the initiative in the four countries out of which Kshs.135 million is available for Kenyan SMEs for the pilot phase which will run until the end of this financial year.
The target
- The bank targets SMEs that have been in business for two years, received at least three contracts and are keen to grow their businesses by fulfilling orders and increase their competitiveness.
- Corporate organisations that are keen on strengthening their value chains.
- Enterprises that are reliable and valued suppliers within corporate value chains and want to be procurement ready.
- In addition, we are also looking for development partners which have funds they would like to lend to SMEs that they would like administered by Barclays. Similarly, we are open to co-funding initiatives with like-minded partners.
Benefits to SMEs
- Increased access to funding opportunities
- Strengthen business management: beneficiary SMEs will access business skills training, development and wider networking opportunities.
- Market development by creating sustainable and longer term access to wider market for goods and services
- Access technology and tools-Accounting packages, mobile and internet banking, cash management products and post loan management
- Customised training programmes for beneficiaries in order to equip these businesses with the skills they need to respond to emerging challenges and opportunities in a proactive and nimble manner
To find out more about this program, please visit your nearest Barclays Bank branch.
Pic: SokoDirectory