Ecobank, a leading pan-African banking group, has signed a $200 million risk-sharing agreement with the African Guarantee Fund, a specialized pan-African guarantee institution.
The partnership is aimed at promoting economic growth and supporting entrepreneurial businesses, including women-owned small and medium-sized enterprises (SMEs) on the continent.
The two organizations signed the strategic partnership agreement in the presence of their respective leaders on Thursday during the African Financial Sector Summit in Lomé, Togo.
The $200 million risk-sharing agreement marks the third renewal of Ecobank’s partnership with AGF, which provided an initial guarantee covering seven countries in 2013 with a total portfolio of $50 million.
In 2018, the guarantees were extended to 14 countries, with cumulative disbursements since then amounting to $230 million. The new partnership now extends to 27 countries within Ecobank’s Africa network, providing 50 percent guarantees to eligible SMEs in all target markets.
By leveraging Ecobank’s extensive network and financial expertise, and combining it with AGF’s proven track record in risk mitigation, the partnership aims to address the challenges faced by SMEs in accessing affordable finance.
The fund will create a more conducive environment for financial institutions to support these businesses without compromising their risk profile.
About Ecobank
Ecobank Transnational (ETI) is a pan-African banking group with operations in 33 African countries and representative offices in London, Paris, Beijing, Dubai, Abu Dhabi, Johannesburg, Lomé, Istanbul and Kuala Lumpur. The Group employs over 17,000 people and is listed on the Lagos, Accra and Lomé stock exchanges.
About the African Guarantee Fund
The African Guarantee Fund (AGF) is a non-profit organization dedicated to supporting financial inclusion in Africa.AGF provides financial guarantees to banks and other financial institutions to encourage them to lend to small and medium-sized enterprises (SMEs).