AGF seeks economic empowerment for SMEs, women in Africa

The African Guarantee Fund (AGF) has stressed the need to address the unique financial needs of Small and Medium-sized Enterprises (SMEs) and women in Africa through economic empowerment.

Stakeholders and financial experts, who spoke on the sidelines of the African Development Bank’s Annual General Meetings in Nairobi, Kenya, agreed that unlocking the growth of African SMEs is critical for sustainable development in Africa.

The event showcased the significant impact of the African Guarantee Fund, highlighting its billion-dollar contributions across the African continent. As a non-bank financial institution dedicated to facilitating access to finance for SMEs in Africa, AGF has unlocked close to $5 billion in financing for SMEs through 200 financial institutions across 40 African countries.

Addressing the gathering, the Chief Executive Officer, AGF Group, Jules Ngankam, observed that the partnership with Africa Development Bank (AfDB), has positioned AGF as a leading guarantee fund in Africa.

He said: “The AfDB has doubled its capital in our institution over the last five years, enhancing our lending capacity to SMEs across Africa. Of this increased capital, 30 per cent has been allocated to the manufacturing sector, with a significant focus on the agricultural sector to support the entire agribusiness ecosystem.”

He noted that banks in Africa have increasingly recognised the importance of catering to women as a distinct and significant customer segment.

In his remarks, AFDB President, Dr. Akinwumi Adesina, clarified that what AFAWA is de-risking is not women but the bias against women.

According to him, “AFAWA is about making room for women. I designed the AFAWA program because I believe that no bird can fly with one wing. Every bird flies with two wings. However, in Africa, we are not financing women. The economic growth rate and development of Africa will go much further when we start financing women because women make this continent work.”

President and Managing Director of Trade and Development Bank,  Admassu Tadesse, called for strategic partnerships to support the finance ecosystem in Africa.

“I am pleased to see the leaders of the banking industry in Africa gathered here today. We have matured in our understanding of the imperatives of scale in our industry. Each of us has important roles to play, but individually, our efforts are still incomplete.”