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African Industrial­isation Day: BoI Restates Resolve to Finance Real Sector

- Crusoe Osagie

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.

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