The African Guarantee Fund Group (AGF), through its subsidiary AGF West Africa, and the Orabank Group have concluded a portfolio guarantee agreement for a total amount of 60 billion FCFA (100 million USD), aimed at increasing the financing capacity of the Orabank Group in favor of SMEs through its subsidiaries in West Africa.
The partnership agreement was signed by Jules NGANKAM, AGF Group Chief Executive and Ferdinand NGON KEMOUM, Chief Executive Officer of Oragroup, in the presence of the entire Top Management from both institutions.
The strengthening of the partnership between the two institutions will allow Orabank Group to play a major role in the development of the economies where it operates, by providing a solution to the thorny issue of access to financing for SMEs.
This partnership is supported by the AfDB’s Affirmative Finance Action for Women in Africa (AFAWA), and will therefore increase financing for women entrepreneurs in the region. The guarantee will also cover SMEs eligible for green financing.
“African Guarantee Fund Group is committed to working with its financial partners to promote economic development, increase job creation and reduce poverty in Africa by providing guarantee solutions and capacity building support specifically to support SMEs. The Orabank Group is a leading player in the financing of African economies due to its geographical presence, focus on SMEs and financial strength. Our partnership with the Orabank Group will therefore allow us to play our major role in promoting the financing of African SMEs,” said Jules NGANKAM.
On his part, Ferdinand NGON KEMOUM, Oragroup Managing Director, welcomed this new partnership with the African Guarantee Fund Group, as a strong symbol of the African SMEs’ development. The fund, which is a powerful illustration of the possible synergies between pan-African groups that share a sustainable and responsible development approach. “This portfolio guarantee will strengthen Orabank’s ability to finance SMEs with innovative solutions adapted to their risk management and development cycle. Moreover, this portfolio guarantee is fully in line with our strategic plan to effectively support SMEs in all aspects of their ecosystem, in line with our pan-African vision to participate in theeconomic and social development of the private sector in the twelve countries where we have operations.”
This agreement comes on the heels of three previous agreements signed between the two financial institutions since 2015 including a portfolio guarantee and two fundraising guarantees that have enabled the Orabank Group to finance thousands of SMEs in its countries of operation, achieve strong financial performance, and contribute sustainably to the growth of the economies where the Group operates.
African Guarantee Fund (AGF) is a specialised guarantee provider with a mandate of facilitating access to finance for Small and Medium Enterprises (SMEs) to enable them fully play their role of driving Africa’s economic growth. To achieve this, AGF provides partial credit guarantees and capacity development assistance to its Partner Financial Institutions. AGF has so far issued guarantees amounting to approximately USD 1.8 billion which have unlocked more than USD 3 billion of SME financing, through its 200 Partner Financial Institutions across 40 African countries.
As a 2X Challenge qualified institution, AGF is committed to supporting women entrepreneurship through the AFAWA Guarantee for Growth program, which aims to unlock up to USD 5 billion in financing for women-owned or led businesses by 2026. AGF also fosters sustainable growth through its Green Guarantee Facility, to increase access to finance for SMEs investing in climate and green growth-oriented economy.
African Guarantee Fund was established in 2011 by the Government of Denmark (represented by DANIDA), the Government of Spain (represented by AECID) and the African Development Bank (AfDB). Other shareholders include French Development Agency (AFD), Nordic Development Fund (NDF), Investment Fund for Developing Countries (IFU), KfW Development Bank (KfW), Proparco and West African Development Bank. AGF is also sponsored by Global Affaires Canada and USAID’s West Africa Trade & Investment Hub.
AGF is also supported by Global Affaires Canada and USAID’s West Africa Trade & Investment Hub.
AGF is rated AA- by Fitch Ratings.
