Barclays Kenya unveils Ksh150M Enterprise Supply Chain Development to Support SMEs

Barclays Kenya of Kenya has unveiled  Ksh 150 million Enterprise Supply Chain Development (ESD) aimed at offering easier access to funding and enterprise development for SMEs that supply goods and services to corporate organisations to enable them to grow and make a bigger contribution to the economy. 

Around 50 small and medium-sized companies are set to benefit from the pilot programme that will run until the end of this financial year.

“ESD is anchored on 3 pillars: Financial inclusion, business development through training and 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,” said Mr. James Agin, Director Corporate and Investment Banking, Barclays of Kenya during the launch of the programme on Thursday in Nairobi. “It involves partnerships with our corporate clients to develop SMEs in their supply and distribution chains,” he added.

The Enterprise and Supply Chain Development programme will provide easy access to funding for micro and small enterprises. #BarclaysESD

— Barclays Bank Kenya (@Barclays_Kenya) July 20, 2017

According to  Agin, inadequate of access to funding and inadequate technical skills continue to impede the growth of Kenya’s SME sector. He cited the introduction of the interest rates law to have further complicated the situation because banks were forced to reduce their lending appetite towards SMEs due to the high risk nature of their business.

However, he said Barclays Bank recognises the need to find creative ways to contribute to the growth of the SME sector. “This is espoused in our shared growth agenda which for us means having a positive impact on society while delivering shareholder value. This is why the launch of the Enterprise Supply Chain Development (ESD) solution is coming at an opportune time and we are proud that Kenya is the first market outside South Africa to implement the programme,” he said.

The programme targets: 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, SMEs that want to grow their businesses by fulfilling orders and increasing their competitiveness and SMEs which have been in business for a minimum of two years and have serviced at least three contracts with the selected Corporate organisation satisfactorily. 

SMEs will access the funds through the bank’s existing products including bank guarantees, letters of credit, short term loans, invoice discounting and overdrafts.

Beneficiaries of the program will be identified through the Barclays corporate customers and are not required to be Barclays customers at the on-boarding stage. Further, the small and medium entrepreneurs will enjoy customised non- financial support through workshops and training.

“There’s a pre-approval process which involves first working with corporates and getting the right documentation.” – James Agin #BarclaysESD

— Barclays Bank Kenya (@Barclays_Kenya) July 20, 2017

“We are confident that with the successful roll out this programme, Barclays will establish itself as a bank that truly supports the growth of the SME sector,” emphasised  Agin. “Through this program, we will not only provide funding for the SME’s within the corporate value chain, but also deploy training for entrepreneurs to support their growth” he said.

The ESD is headed Ms. Karen Kiambi.

Barclays Africa first introduced the ESD solution in South Africa in 2015 from Kenya, the next markets to be reached will be Botswana, Uganda and Ghana.