Browsing: Denmark through the Danish International Development Agency (DANIDA)

French Development Agency $30 million for African SMEs

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 …