Browsing: African Guarantee Fund (AGF)

• The AfDB and the African Guarantee Fund have unveiled a fresh plan to enhance the financial inclusion of women in Nigeria’s economy.
• The duo have opened the AFAWA Finance Series Nigeria, part of the AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) initiative.
• AFAWA Finance Series Nigeria will explore ways of enhancing the regulatory frameworks that can boost access to finance for women entrepreneurs.

Africa has the highest number of female entrepreneurs across the globe. However, the biggest obstacle they encounter is limited access to finance. Although access to financing poses a challenge to all small and medium enterprises, women-owned businesses are notably at a disadvantage.

It is estimated that the financial gap facing women entrepreneurs may reach up to $50 billion. This can be attributed to several factors, including deep-rooted social and cultural norms. These norms have historically restricted women’s ownership rights of assets that could serve as …

The French Development Agency (AFD) is to provide about $30 Million through its African Guarantee Fund (AGF) for Small and Medium-Sized Enterprises.

The fund is meant to help improve access to credit to small and medium-sized enterprises (SMEs) throughout Africa.

The sub-participation agreement of the $30 million funds was signed by Mr Rémy Rioux, AFD Chief Executive Officer and Mr Félix Bikpo, AGF Group Chief Executive.

The agreement signed between AFD and AGF broadens the existing cooperation between the two entities, by providing AGF with a counter-guarantee of $30 million, using the ARIZ risk-sharing mechanism which is a support for the risk of financing private investment.

The risk-sharing mechanism is in a final loss guarantee offered to financial institutions by AFD to cover 50 per cent to 75 per cent of an individual loan or a loan portfolio for microfinance institutions (MFIs) and SMEs.

The counter-guarantee will enable AGF to …