“This constitutes a milestone and major precedent,” noted Norman Buckham, CEO of Shared Interest’s partner, the Thembani International Guarantee Fund. “ABSA Bank and Thembani are taking the lead in linking South Africa’s banks to its most marginalized communities.”
As 2005 ended, ABSA, Thembani and Shared Interest signed a memorandum of understanding to create a program through which ABSA will roll out loans to low-income communities, partially backed by Shared Interest guarantees. ABSA and Thembani will bring each other proposals for loans to low-income communities of color, their clients, or development finance institutions that, in turn, lend to individuals. Approved loans will receive partial guarantees ranging from R500,000 to R10,000,000 for one to three years. Shared Interest will continue to adapt its guarantees to clients ranging from micro-finance institutions to rural cooperatives. continued…
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