AFRICAN SMEs TO BENEFIT FROM AFREXIMBANK USD 30M RE-GUARANTEE
The African Guarantee Fund for Small and Medium-Sized Enterprises
(AGF) has entered into a re-guarantee transaction of an amount of USD 30
million with Afreximbank, to increase its guarantee capacity for SME
The signing that took place on the sidelines of the Intra-African
Trade Fair in Cairo, was undertaken by AGF’s Chief Risk Officer,
Constant N’ZI and Afreximbank’s Global Head of Trade Finance, Gwen
AGF Chief Executive Officer, Felix BIKPO welcomed the collaboration
with Afreximbank saying it will greatly increase AGF’s capacity to
enable lenders across the continent increase their SME financing. “AGF
can continue to go beyond its limits and tackle the needs of more Medium
Enterprises” he added.
The re-guarantee of USD 30 million will enable AGF to leverage
through its Partner Financial Institutions, the issuance of more than
USD 120 million worth of loan facilities to SMEs in various sectors of
trade. The re-guarantee is expected to benefit about 20,000 SMEs across
Africa, who, in turn are expected to create more than 40,000 jobs into
the economies of African countries.
African Guarantee Fund is the first African institution wholly dedicated
to mobilizing private resources for SME development in Africa. AGF has
over the past 6 years, led the guarantee market in Africa by issuing
guarantee products to more than 100 financial institutions, that have in
turn made available USD 1.6 billion of financing for SMEs across the 40
countries in Africa.