Kampala — The African Guarantee Fund for Small and Medium-Sized Enterprises (AGF) has entered into a re- guarantee transaction of up to $74 million with GuarantCo to increase its guarantee capacity for SME financing on the continent.
The new financing will enable AGF to support larger local currency transactions for SMEs involved in infrastructure development.
Felix Bikpo, AGF's CEO said his company is glad to be joined by GuarantCo in bridging the infrastructure financing gap in Africa.
"This partnership aims to put in place an even stronger collaboration that will work on the entire value chain of infrastructure projects in Africa. We are looking forward to supporting other SMEs that work with key players in the infrastructure sector," he said.
GuarantCo's CEO, Lasitha Perera, said the new partnership will increase support to SMEs active in the infrastructure sector in Africa.
AGF has led the guarantee market in Africa by issuing financial guarantees to a tune of $690 million, enabling financial institutions to issue loans estimated at $729 million to about 7,600 African SMEs.