African SMEs set to benefit from $74 million re-guarantee Fund
AGF has led the guarantee market in Africa by issuing financial guarantees to the tune of $690 million.
The African Guarantee Fund for Small and Medium-Sized Enterprises (AGF) has entered into a re-guarantee transaction of an amount of up to $74 million with GuarantCo to increase its guarantee capacity for SME and infrastructure financing.
Over the past six years, AGF has led the guarantee market in Africa by issuing financial guarantees to the tune of $690 million. This has enabled its partner financial institutions to issue loans estimated at $729 million to about 7,600 African SMEs.
GuarantCo is part of the Private Infrastructure Development Group, (PIDG), and is a global guarantee fund that has issued over $900 million of guarantees since inception in 2005, with a mandate to enable local currency finance for infrastructure.
The transaction will enable AGF and GuarantCo to explore further partnership opportunities of working together in contributing towards economic growth in Africa.
“This partnership aims to put in place an even stronger collaboration that will work on the entire value chain of infrastructure projects in Africa. We are looking forward to supporting other SMEs that work with key players in the infrastructure sector,” said Felix Bikpo, AGF’s Chief Executive Officer.
Lasitha Perera, GuarantCo’s Chief Executive Officer said “We are delighted to be able to partner with the African Guarantee Fund and increase support to SMEs active in the infrastructure sector in Africa. This collaboration between two local currency focussed guarantors offers the potential for us to engage local financial institutions and investors in financing the entire value chain in an African infrastructure project.”
Most Popular News
- Blockchain solutions provider opens payment corridor in Nigeria
- CBN revokes operating licence of Skye Bank as Polaris Bank takes over
- FAO says 5.3 million people need food assistance in northern Nigeria
- Olam begins construction of poultry farms and animal feed mills in Nigeria
- German agency to launch $4.1 million agricultural finance scheme in Nigeria
- Wari rolls out digital payment solutions in Nigeria