The African Guarantee Fund gets $30M from KfW to better support African SMEs

Finance
Tuesday, 14 January 2020 11:37
The African Guarantee Fund gets $30M from KfW to better support African SMEs

(Togo First) - The African Guarantee Fund (AGF) has secured $33 million from the German development bank, KfW. The facility will mostly be used to back small and medium enterprises (SMEs) across the continent. 

The fund indeed declares that the monies should “bolster its efforts - in line with its mission - to help African SMEs to keep playing an important part in the growth of African economies, by spurring financial inclusion especially.” 

Let’s indicate that the AGF, at the continental level, wants to provide financial guarantees to more than 10,000 SMEs, yearly. In West Africa particularly, the institution targets 2,000 SMEs, per year on average, per country. 

So far, guarantees provided by the fund for African SMEs amount to nearly $1.7 billion. About 20,000 SMEs benefited from this support - 60% of which are held by youths, while 30% are by women. 

In Togo, the AGF, whose West African division is based in Lomé, signed a deal with the Risk-based Agricultural Financing Incentive Mechanism (MIFA S.A), last July. Under the agreement, the AGF will guarantee 50% of funds needed for projects submitted by MIFA S.A to its partners. The two parties, MIFA and AGF, also work on financial tools more suited to Togo’s agricultural sector. 

Ayi Renaud Dossavi

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