Foreign Firm Offers Low-Interest Loans to Small Businesses

Oikocredit, an international lender, operating in over 80 countries of the
world, has promised to pursue a single-digit interest rate regime for small
businesses operating in Nigeria.

The company, which opened its Nigerian office, last week, stated that it would
be guided by social responsibility and a passion to fight poverty in
the country
in determining cost of funds and charges for borrowers.
The Country Manager, Oikocredit Nigeria, Mrs. Ufuoma Eghwerehe, said
the company
would open its doors to Nigerian small enterprises for the purpose of growing
the economy, although its business remains structured to deliver returns to
shareholders.
Oikocredit, she said, believed that the over 1.4 billion world’s poor were not
poor because they lacked ability, but that they were poor because they lacked
opportunities, stressing that the company had provided that opportunity through
credit in the countries it is operating and would do the same way in Nigeria.
“Oikocredit has provided credit to over 20 million people through microfinance
banks and remains one of the world’s largest sources of private funding with
over 43,000 investors. It has disbursed over 1 billion Euros in
cumulative loans
and investments since 1975. The company has over 863 project partners; a total
portfolio of 482 million Euros by the end of 2010 and with a profit of 2.1per
cent of that portfolio.
“We monitor certain social performance indicators to ensure our microfinance
partners reach the right target groups and provide services that work towards a
positive change in peoples’ lives. The numbers of borrowers reached by
Oikocredit’s microfinance partners are over 20million of which female clients
are 86 per cent and rural clients 44 per cent. We work with more than 592
microfinance institutions worldwide in 80 countries, “she said.

A director of the company, Mrs. Ifeoma Ana, pointed out that while in Nigeria,
Oikocredit would be partnering with microfinance banks, corporative societies,
governmental institutions and relevant agencies to provide access to financial
services to millions of Nigeria’s small enterprises and poor people.
“We will be offering our credit through partners as in other countries of the
world where we do business, for onward lending to small business borrowers,
cooperatives, small and medium enterprises and non-governmental
organisations in
agriculture, agribusiness, education, manufacturing, fair trade among others.”
In a presentation at the launch of the Oikocredit Nigerian office, the Managing
Director, Oikocredit International, Mr. Tor Gull, said the financial
institution
promoted global justice by challenging people, churches and others to share
their resources through socially responsible investments and by empowering
disadvantaged people with credit.
“We offer a dual return to our investors: social and financial. In addition to
earning modest financial returns, investors are secure in the knowledge that
their money is being used to fight poverty, promote fair trade and respect our
planets natural resources,” he added.
The Lagos State Commissioner for Commerce, Mr Niyi Eyemade, expressed
confidence
in the organisation and  promised that the Government of Lagos State would
continue to foster the enabling environment for the private sector to excel,
stressing that the government would always partner with private sector organs
that present laudable projects and programmes to enhance the wellbeing of
Lagosians and the Nigerian people.

source : Thisday