Ecobank, a prominent pan-African banking group, and the African Guarantee Fund (AGF), a specialized pan-African guarantee provider, have sealed a $200 million risk-sharing agreement.
This collaboration, renewed for the third time, underscores the commitment to fueling economic growth and supporting entrepreneurial ventures, particularly women-owned SMEs, across the continent.
The strategic partnership agreement, signed on the sidelines of the Africa Financial Industry Summit in Lomé, Togo, extends to 27 countries within Ecobank’s African network.
It offers 50% coverage for qualifying SMEs, addressing challenges they face in accessing affordable financing.
Ecobank Group CEO, Jeremy Awori, emphasized the transformative impact on SMEs and the broader economic landscape, stating, “Through this partnership, we are taking bold steps to enhance green financing and gender financing. In doing so, we aim to eliminate the rigorous and restrictive requirements for collateral, particularly hindering women-focused businesses’ access to credit.”
Jules Ngankam, African Guarantee Fund Group CEO, highlighted the significance of risk-sharing mechanisms, noting that the partnership will catalyze close to $1 billion of financing for SMEs, crucial drivers of growth in African economies.
The collaboration aligns with broader financial inclusion objectives, ensuring diverse businesses, including those in underserved areas, can access financial resources needed for growth.
