This archive report was first published on 13 January 2020.
On January 13, 2020, the African Guarantee Fund (AGF) received a significant boost in its capital, courtesy of the German lender, KfW Development Bank, which injected $33 million (KSh3.3 billion) into the organization.
This capital injection is expected to have a positive impact on the continent, as AGF has cumulatively issued more than $1 billion worth of guarantees, making available about $1.7 billion for SME financing through its Partner Financial Institutions. This has led to the creation of more than 100,000 additional jobs, according to Felix Bikpo, Group CEO of African Guarantee Fund.
"This capital injection will go a long way in ensuring that we continue to make a positive impact in the continent." — Felix Bikpo, Group CEO of African Guarantee Fund
Furthermore, AGF will use the funds to increase financing of women-owned or led businesses, which already face a gender financing gap of $42 billion. This will be in addition to its partnership with the African Development Bank (AfDB) through the Affirmative Finance Action for Women in Africa (AFAWA), which currently has a $251 million commitment from G7 countries.
The African Guarantee Fund is designed and funded by the AfDB in partnership with the governments of Denmark and Spain. It provides financial guarantees to financial institutions to stimulate financing to SMEs and unlock their potential to deliver inclusive growth in Africa.
Since its inception in 2012, AGF has successfully guaranteed 20,000 African SMEs from different economic sectors.
