By NATION REPORTER
ECOBANK, a leading pan-African banking group and the African Guarantee Fund (AGF), a specialised pan-African guarantee provider, have joined forces in a groundbreaking US$200 million risk-sharing agreement, aimed at catalysing economic growth and supporting entrepreneurial ventures, including women-owned SMEs on the continent.
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The two institutions signed a strategic partnership agreement recently on the sidelines of the Africa Financial Industry Summit (AFIS) in Lomé, Togo, in the presence of their respective leaders.
Glenda Masebe-Kamalata, the Head of Marketing and Corporate Communications says the US$200m risk-sharing agreement marks the third renewal of Ecobank’s partnership with AGF.
Ms Masebe-Kamalata said the US$200m risk-sharing agreement was the largest guarantee facility in sub-Saharan Africa and marked the third renewal of the partnership between Ecobank and AGF.
The agreement, she said would see Small Scale Enterprises (SMEs) from across 27 African markets in which Ecobank operated benefit from the partnership, up from just seven countries in 2013.
Ms Masebe-Kamalata said in a statement that the initial guarantee, provided by AGF in 2013, covered seven countries with a total guaranteed portfolio of US$50m.
She explained that in 2018, the scope of the guarantee expanded to encompass 14 countries, resulting in cumulative disbursements of US$ 230m since that time.
She said the partnership included enhanced 75 percent guarantee cover for Gender Financing and Green Transactions with favourable terms which had been set to ensure more women-led and green transactions were fast-tracked, incorporating reduced pricing.
Ms Masebe-Kamalata explained that the partnership would see the result in enhanced 75 percent guarantee cover for Gender Financing and Green Transactions and that favourable terms had been set to ensure more women-led and green transactions are fast-tracked, incorporating reduced pricing.
She said the partnership would result in increased lending capacity as the US$200m facility would allow Ecobank to significantly boost its lending capacity to SMEs, enabling the Bank to extend more credit facilities to SMEs seeking to expand, innovate, and contribute to job creation.
And commenting on the partnership, Ecobank Group CEO, Jeremy Awori expressed enthusiasm about the potential impact on SMEs and the overall economic landscape.
In doing so, we aim to eliminate the rigorous and restrictive requirements for collateral, particularly hindering women-focused businesses’ access to credit” Mr Awori said.
And African Guarantee Fund Group CEO, Jules Ngankam acknowledged the longstanding partnership between AGF and Ecobank Group and its transformative impact on the SME landscape.
The US$200m risk-sharing agreement is positioned to become a landmark initiative in the financial landscape of Sub-Saharan Africa, demonstrating the collaborative efforts of key players in driving economic growth and fostering entrepreneurship.
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