Small businesses across Africa often struggle to access finance. This challenge is particularly acute in Botswana as many lenders tend to focus on the country’s mining industry. Absa Bank Botswana wanted to support a wider range of companies but needed additional financing.
Our Solution & Impact
The U.S. International Development Finance Corporation (DFC) and the U.S. Agency for International Development (USAID) structured a 50 percent loan portfolio credit guarantee with Absa Bank Botswana. This loan allowed Absa to lend $2 million to Arona Natural Foods, a small bread company. With this loan, Arona Natural Foods was able to purchase land and equipment, hire more employees, and expand its product lines. This loan also helped Arona Natural Foods become the sole supplier of baked goods to the Botswana locations of Woolworth’s, a major supermarket chain. When COVID-19 forced Botswana to close its borders, Arona Natural Foods’ expanded production also helped the company meet increased local demand.