Ecobank and AGF sign $200 million agreement to boost African SMEs

LOMÉ – Ecobank and the African Guarantee Fund (AGF) have entered into a significant $200 million risk-sharing agreement aimed at fostering economic growth across 27 African countries. This strategic partnership, announced at the Africa Financial Industry Summit in Lomé, Togo, today, represents the third renewal since its inception in 2013 and marks a substantial increase in both scope and scale.

The collaboration initially covered seven countries with a $50 million guaranteed portfolio. By 2018, it had expanded to 14 countries with cumulative disbursements reaching $230 million. The latest agreement extends its reach further, now encompassing nearly half of the continent and offering a 50% coverage for qualifying small and medium-sized enterprises (SMEs) within Ecobank’s network.

A key aspect of this partnership is its focus on inclusive financing, particularly for women-led businesses and green transactions. With a 75% guarantee cover provided for gender financing under Ecobank’s “Ellevate” program and AGF’s “AFAWA Guarantee for Growth” facility, the initiative aims to address the financial challenges faced by SMEs while promoting sustainable practices.

The CEOs of both organizations, Jeremy Awori of Ecobank Group and Jules Ngankam of AGF Group, have expressed their optimism regarding the potential impact of this partnership on SMEs and Africa’s broader economic landscape. They anticipate that the collaboration will not only enhance lending to SMEs but also mitigate risks through AGF’s support, thereby stimulating job creation across sub-Saharan Africa.

The countries benefiting from this extended coverage include Benin, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Congo, Côte d’Ivoire, Democratic Republic of Congo, Equatorial Guinea, Gabon, Ghana, Guinea Bissau, Guinea Conakry, Kenya, Mozambique, Nigeria, Rwanda, Senegal, Sierra Leone, South Sudan, Tanzania, Togo, Uganda, Zambia, and Zimbabwe. This broad reach underscores both organizations’ commitment to promoting financial inclusion and economic development across the continent.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.