Awards for Excellence 2017
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Lending to small and medium-sized enterprises is an important part of banking in Africa, and an area of business that requires ever more support from the continent’s banks. Guaranty Trust Bank (GTBank) dominated the sector over the last year and so wins the title of best bank for SMEs.
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Segun Agbaje, |
GTBank defines SMEs as firms with an annual turnover of up to N500 million ($1.6 million). Revenue derived from such firms still makes up a small proportion of GTBank’s overall income, but it grew substantially year on year, from 2.3% in 2015 to 4.5% in 2016. As a percentage of total assets, SME loans grew from 2.5% to 3.5%.
GTBank has devoted substantial resources to SME work: 178 employees work exclusively on SMEs in Abuja, Lagos and the southeast of Nigeria. GTBank participates in the voluntary Small and Medium Enterprises Equity Investment scheme, by which it sets aside 10% of its profits after tax for equity investment and promotion of SMEs
The bank is also promoting SMEs in new ways through, for example, the SME MarketHub, a free online platform where SMEs can sell their products. That platform continues to expand – it now presents the work of 12,000 businesses – with a growing social media presence.
The bank launched two events last year, a fashion weekend and a food and drink fair promoting the work of young entrepreneurs in those sectors. The fair had 90 SMEs and 25,000 guests; the fashion show had exhibitions by more than 100 small business owners and 25,000 guests. On a smaller scale, GTBank launched a virtual art gallery, where Nigerian artists can promote and sell their work. In its first six months, 300 works and 50 professional artists were added to the platform.
