Africa’s leading Guarantee Institution, African Guarantee Fund (AGF) has received an additional USD 33M financing from German lender KfW Development Bank , in a move that will catapult AGF’s efforts to enable African SMEs continue to play their critical role in driving Africa’s economy.
This new financing comes at a time when the continent’s SME sector has
been singled out as a key driver of growth. This now places AGF firmly on the
driver’s seat as the champion that eases access to financing for SMEs across
the continent.
The African Guarantee Fund is focused on its goal to provide
financial guarantees for over 10,000 SMEs annually through partner financial
institutions and as a trickledown effect, create 30,000 jobs per year.
“We are excited about the confidence our shareholders and
partners have in what we are doing in Africa. This capital injection will go a
long way in ensuring that we continue to make a positive impact in the
continent. So far, we have cumulatively issued more than USD 1 B worth of
guarantees making available about USD 1.7 billion for SME financing through our
Partner Financial Institutions. This has led to the creation of more than
100,000 additional jobs,” says Felix Bikpo, Group CEO of African Guarantee Fund.
Out of the 20,000 African SMEs from various economic sectors
that have so far benefited from AGF guarantees, the institution is very proud
that 60% of these SMEs are owned by youth who are the majority in
Africa today, and 30% owned by women, both being demographics that heavily
impact Africa’s economy.
“Our experience traversing Africa has shown us that Women in
Africa are tenacious entrepreneurs, even though they face a gender financing
gap of USD 42 billion. The capital increase from KfW will largely be used to
increase financing of women owned or led businesses. This is in addition to our
partnership with the African Development Bank through the recently launched
Affirmative Finance Action for Women in Africa (AFAWA) which currently has a
USD 251 million commitment from G7 countries.” added Mr. Bikpo.