In a bold move to stimulate economic recovery in the wake of the Covid-19 pandemic, the World Bank has launched a USD 100 million initiative aimed at small and medium enterprises (SMEs) with savings and credit cooperative societies (Saccos) among the principal beneficiaries.
The programme seeks to channel funding through financial intermediaries and cooperatives to reach grassroots businesses often excluded from conventional banking systems. This structure allows Saccos to amplify outreach within local communities.
By empowering Saccos to access these funds, the plan targets not only economic revival but job creation, increased liquidity and resilience for SMEs which were deeply impacted by lockdowns, supply-chain disruptions and market contractions.
Observers believe this could mark a turning point for informal financial sectors and cooperatives across Africa, increasing their credibility and enabling them to play a larger role in formalising small-business finance.
As implementation unfolds, monitoring, transparency and capacity-building will be key to ensure the funds deliver impact, reach the intended enterprises and avoid leakage or misuse.