Ecobank and African Guarantee Fund Forge $200 Million Partnership to Boost SMEs and Economic Growth in Africa

 In a groundbreaking move to stimulate economic growth and support entrepreneurship, Ecobank and the African Guarantee Fund (AGF) have united in a $200 million risk-sharing agreement. The collaboration is geared towards advancing economic development and offering substantial assistance to small and medium-sized enterprises (SMEs) across the continent, with a particular focus on enterprises owned by women.

This strategic partnership agreement was formalized during the Africa Financial Industry Summit (AFIS) in Togo, underscoring the commitment of both entities to fostering economic resilience and entrepreneurship in Africa.

The $200 million risk-sharing agreement marks the third iteration of the collaboration between Ecobank and AGF, initially established in 2013 to cover seven countries with a guaranteed portfolio of $50 million.

Ecobank Group CEO, Mr. Jeremy Awori, expressed optimism about the potential impact on SMEs and the broader economic landscape. He emphasized the initiative's commitment to supporting SMEs across Africa with affordable financing, particularly benefiting women-focused businesses by eliminating stringent collateral requirements.

The CEO of African Guarantee Fund Group, Jules Ngankam, recognized the transformative impact of the longstanding partnership on the SME landscape, anticipating that the collaboration would catalyze close to $1 billion of financing for SMEs, crucial drivers of growth in African economies. Ngankam highlighted the significant benefit the "AFAWA Guarantee for Growth" facility would bring to Ecobank's "Ellevate" program, boosting financing for women-led or owned SMEs.

The renewed partnership extends to 27 countries within Ecobank's African network, providing 50 percent coverage for qualifying SMEs across target markets. Noteworthy features include an enhanced 75 percent guarantee cover for gender financing and green transactions, with favorable terms for transactions led by women or focusing on environmental sustainability.

This collaboration aims to address challenges faced by SMEs in accessing affordable financing, leveraging Ecobank's extensive network and financial expertise combined with AGF's proven track record in risk mitigation. Anticipated to have a profound impact on various sectors, the $200 million risk-sharing agreement contributes to increased economic activity, job creation, and sustainable development across sub-Saharan Africa. The collaborative effort exemplifies a landmark initiative driving economic growth and entrepreneurship in the financial landscape of Sub-Saharan Africa, covering countries such as Benin, Ghana, Kenya, Nigeria, Rwanda, Tanzania, Uganda, and Zimbabwe, among others.