The African Guarantee Fund (AGF) has received $33 million (KSh3.3 billion) capital boost from the German lender, KfW Development Bank.
This capital injection will go a long way in ensuring that we continue to make a positive impact in the continent. So far, we have cumulatively issued more than $1 billion worth of guarantees, making available about $1.7 billion for SME financing through our Partner Financial Institutions. This has led to the creation of more than 100,000 additional jobs.Felix Bikpo, Group CEO of African Guarantee Fund
Furthermore, the organization will use the funds to increase financing of women owned or led businesses. This is because they already face a gender financing gap of $42 billion.
This, also, will be in addition to its partnership with the AfDB through the Affirmative Finance Action for Women in Africa (AFAWA), which currently has a $251 million commitment from G7 countries.
The African Guarantee Fund is designed and funded by the AfDB in partnership with the governments of Denmark and Spain. It provides financial guarantees to financial institutions to stimulate financing to SMEs and unlock their potential to deliver inclusive growth in Africa.
Since its inception in 2012, AGF has successfully guaranteed 20,000 African SMEs from different economic sectors.