The German development finance institution, KfW Development Bank, has provided additional $33 million funding to the African Guarantee Fund (AGF).
Nigeria’s financial institutions are expected to draw from the funds for the benefits of some of the qualifying SMEs in their portfolio.
The fresh funding, according to AGF, would catapult AGF’s efforts to enable African SMEs continue to play their critical role in driving Africa’s economy.
Felix Bikpo, Group CEO of AGF stated: ‘‘This new financing comes at a time when the continent’s SME sector has been singled out as a key driver of growth. This now places AGF firmly on the driver’s seat as the champion that eases access to financing for SMEs across the continent.
‘‘The African Guarantee Fund is focused on its goal to provide financial guarantees for over 10,000 SMEs annually through partner financial institutions and as a trickle down effect, create 30,000 jobs per year.
“We are excited about the confidence our shareholders and partners have in what we are doing in Africa. This capital injection will go a long way in ensuring that we continue to make a positive impact in the continent. So far, we have cumulatively issued more than USD 1 B worth of guarantees making available about USD 1.7 billion for SME financing through our Partner Financial Institutions. This has led to the creation of more than 100,000 additional jobs.”