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News Coverage

21/06/2018
AFRICAN GUARANTEE FUND RECEIVES USD 26 Million CAPITAL INCREASE FOR FINANCING SMEs IN AFRICA

The African Guarantee Fund for Small and Medium-Sized Enterprises (AGF) has received a capital increase amounting to USD 26million. The Investment Fund for Developing Countries (IFU) joins AGF as a new partner with a capital of USD 15.5 million and a USD 2 million grant to AGF’s Capacity Development Trust. The Nordic Development Fund, one of the fund’s shareholders, has increased their shareholding by USD 10.4 million and a further Capacity Development grant of USD 1.5 million.

Nordic Development Fund’s shareholding focuses on Green Financing achieved through AGF’s Green Guarantee Facility that was launched in 2015, with an aim of increasing access to finance for climate and green-growth oriented SMEs

A pan-African provider of financial guarantees to banks and other lending institutions across the continent, AGF’s key objective is to reduce the SME financing gap currently standing at USD 155 billion by 1%. This is to be achieved by raising USD 420 million through a Blended Finance mechanism. The capital increase received today is part of the first of a three-phase fund raising exercise that will be completed over the next five years.

AGF is the first African institution wholly dedicated to mobilizing private resources for SME development on this Continent and has over the past 6 years, led the guarantee market in Africa by issuing guarantee products to financial institutions that have made available USD 1.4 Billion of financing for SMEs in Africa.

AGF Chief Executive Officer, Felix BIKPO stated “Strengthening Africa’s SMEs is critical for development as it is through this that African countries become more competitive at a global level. With this increased capacity, AGF will be able to support larger local currency transactions for SMEs involved in all sectors with a priority on Energy, Infrastructure, Agri-business and Green Growth.”

This capital injection will enable the AA- Fitch rated guarantee fund to continue working together with financial institutions towards a sustainable economic growth in Africa.

 

Communication Contact:

Diana Aluga

M: 254 732 148 000

E :  diana.aluga@africanguaranteefund.com

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