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African Industrialisation Day: BoI Restates Resolve to Finance Real Sector
As Nigeria and other African countries yesterday commemorated this year’s African Industrialisation Day, the Bank of Industry (BoI) has reaffirmed its commitment towards supporting growth among small businesses through sustainable funding schemes that would further stimulate industrialisation.
According to the bank, its five-year strategic plan and implemented strategy are in line with this year’s African Industrialisation Day’s theme, “SMEs for poverty eradication and job creation for women and youth.”
Indeed, the Africa Industrialisation Day is celebrated yearly on November 20 each year to assist governments and other organisations in many African countries examine ways to stimulate Africa’s industrialisation process while drawing attention to the challenges of industrialisation in the continent.
The United Nations SecretaryGeneral, Ban Ki-Moon, had stated that many African economies have shown impressive growth rates in recent years, but increased prosperity has not always translated into inclusive wealth creation.
According to him, far too often, economic development depends on the extraction of natural resources and on lowskilled labor, which has resulted in a weak manufacturing base and uneven distribution of wealth.
He noted that, “Africa needs a green, clean industrialization that leapfrogs out-dated, polluting processes and platforms and benefits from new technologies. Inclusive and sustainable industrialisation is a key stepping stone towards sustained economic growth, food security and poverty eradication in Africa.”
The Managing Director, BoI, Rasheed Olaoluwa explained that while joining other nations in commemorating the industrialisation day, the bank, as part of measures to ensure its impact is felt in the economy, developed a five-year Strategic Plan from 2015-2019 to address challenges with funding the nation’s industrialisation agenda.
According to him, the strategic initiative has seen the bank move from the introduction of several innovative financing schemes, to the appointment of 122 business development service providers (BDSPs) to facilitate SMEs’ access to loans as well as the reduction of non-performing loans from 18 per cent per cent to less than five per cent, while improving its operational efficiency with an upgrade of its system and introduction of mobile applications.
Olaoluwa stressed that these developments imply that Nigeria must join the rest of the world to become an industrialised nation by harnessing the potential in different sectors while engaging youths to become entrepreneurs.
“BoI is trying to achieve a balance in its functions as a development finance institution in terms of delivering social impact and maintaining a sustainable economic development.