This archive report was first published on 1 December 2019.
On November 28, 2019, the African Guarantee Fund (AGF) secured a significant boost in its efforts to support African small and medium-sized enterprises (SMEs). The French Development Agency (AFD) provided AGF with a counter-guarantee of USD 30 million, leveraging the ARIZ risk-sharing mechanism and supporting private investments.
This partnership aims to improve access to credit for SMEs across Africa, thereby promoting economic development and job creation. The agreement was signed by AFD Chief Executive Officer Rémy Rioux and AGF Group Chief Executive Officer Félix Bikpo in Paris.
According to Mr. Bikpo, the counter-guarantee will enable AGF to extend guarantees of USD 60 million to local financial institutions, allowing them to lend a total of USD 120 million to African SMEs. This is estimated to benefit 1,800 SMEs and support 5,400 jobs.
Mr. Bikpo further emphasized the potential of this partnership, stating, "Through its leverage effect, this counter-guarantee will enable AGF to extend guarantees of USD 60 million to local financial institutions, thereby allowing the latter to lend a total of USD 120 million to African SMEs. It is estimated that such an amount of loans will benefit 1,800 SMEs and support 5,400 jobs."
Following the signing ceremony, Mr. Rioux and Mr. Bikpo discussed further areas of collaboration, including increasing African women's access to finance through the Affirmative Finance Action for Women in Africa (Afawa) initiative. Afawa has already received commitment from the government of France during the Biarritz Summit in August 2019.
