Project detail - Access Bank Botswana Limited

Who is our customer?

Access Bank Botswana Limited (“ABB”) is a commercial bank in Botswana, providing a full suite of retail, business, corporate banking, and treasury services. ABB is majority-owned (70%) by Access Bank Plc, a leading pan-African banking group headquartered in Nigeria and listed on the Nigerian Stock Exchange. ABB is listed on the Botswana Stock Exchange and, as of June 2025, holds a market share of 7% by total banking assets. The bank’s strengths include a strong capital position (CAR at 21.8% per June 2025), a growing digital and transactional banking platform, and a strategic focus on diversifying its loan portfolio towards SMEs and corporates. ABB’s management team benefits from dedicated support and expertise from its parent group, particularly in risk management and small- and medium-sized enterprise (SME) lending.

What is our funding objective?

FMO invests USD 15 million through a senior unsecured loan to Access Bank Botswana Limited, with a minimum of 40% of the proceeds ring-fenced for on-lending to SME and/or Micro Sub-Loans to Agriculture, Women, and/or Youth Sub-borrowers. The facility supports ABB’s strategy to diversify its loan book, expand its footprint in the SME segment, and promote financial inclusion in Botswana. This transaction is aligned with FMO’s strategy to deepen relationships with strong regional banking groups and to support private sector development in upper-middle-income countries with high levels of inequality. The funding contributes to job creation, economic growth, and reducing inequalities in Botswana.

Why do we fund this investment?

FMO’s investment in ABB supports the mutual strategy of sustainable commercial development by enabling the bank to expand its micro- and SME (MSME) loan book, thereby fostering economic growth, job creation, and financial inclusion in Botswana. The transaction is highly additional, providing needed financing in a market with a significant funding gap for MSMEs, especially those owned by women and youth. The facility is expected to contribute to SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities) and aligns with FMO’s mandate in countries with high income inequality. This transaction qualifies for the 40% Reducing Inequalities label.

What is the Environmental and Social categorization rationale?

ABB has been categorized as FI-B, in line with FMO’s Sustainability Policy. The bank’s current portfolio is predominantly retail-focused, with less than 2% exposure to high environmental and social (E&S) risk sectors. However, as ABB executes its strategy to grow its SME and corporate portfolios, including clients in sectors such as agriculture and mining value chains, the E&S risk profile is expected to evolve. ABB has adopted an Environmental and Social Risk Management (ESRM) policy based on its parent group’s framework, adapted to the local context.