Ecobank and the African Guarantee Fund (AGF) have sealed a transformative USD 200 million risk-sharing agreement, marking the third renewal of their partnership. The largest guarantee facility in sub-Saharan Africa, this groundbreaking collaboration aims to catalyze economic growth and support entrepreneurship, particularly benefiting women-owned SMEs across Ecobank’s extensive African network.Thank you for reading this post, don't forget to subscribe!
This renewed partnership, spanning 27 countries, enhances Ecobank’s lending capacity to SMEs, with AGF playing a crucial role in mitigating credit risk. The agreement incorporates favorable lending terms for gender financing and green transactions, fast-tracking more women-led and environmentally conscious initiatives. Notably, the collaboration aligns with broader financial inclusion objectives, facilitating access to financial resources for businesses in underserved areas.
Key highlights include a 75% guarantee cover for Gender Financing and Green Transactions, increased lending capacity, risk mitigation for SMEs, and significant contributions to economic activity, job creation, and sustainable development in sub-Saharan Africa.
Jeremy Awori, Ecobank Group CEO, emphasizes the commitment to supporting SMEs with affordable financing, aiming to eliminate restrictive collateral requirements, especially for women-focused businesses. Jules Ngankam, CEO of the African Guarantee Fund Group, recognizes the transformative impact on the SME landscape, projecting close to $1 billion in financing for SMEs.
This USD 200 million risk-sharing agreement, positioned as a landmark initiative, showcases collaborative efforts fostering economic growth and entrepreneurship across countries such as Nigeria, Ghana, Kenya, and others within the partnership.