Financial assistance from AGF for SMEs in Africa | In order to help African women in difficulty due to the coronavirus pandemic, the African Guarantee Fund (AGF), a pan-African financial institution, announced on Monday, May 18, the establishment of a fund to finance them.

“AGF's Covid-19 facility amounts to a $1.2 billion guarantee [€1.1 billion], which will allow banks to finance SMEs up to $2.4 billion at least for a period of two years”, underlines a press release.

AGF estimates "between 20 and 40 billion dollars", the loss of turnover for SMEs in Africa in 2020 due to the pandemic.

According to Félix Bikpo, CEO of AGF, “the consequences of the pandemic will continue to have growing negative effects on SMEs in Africa, both on the credit supply side and on the demand side. Consequently, we anticipate a deterioration in the solvency of SMEs. This factor is likely to induce an increase in the cost of credit for the financial sector, which will certainly increase its reluctance to finance SMEs in the absence of external stimuli. »

A non-banking financial institution, the African Guarantee Fund (AGF) was created to help small and medium-sized enterprises (SMEs). Its objective is to promote the continent's economic development, increase job creation and reduce poverty by providing financial institutions with guarantee solutions, specifically intended to support SMEs in Africa.

Its main donors are the development agencies of Denmark (Danida), Spain (Aecid), France (AFD), Germany (KFW) and the African Development Bank (ADB).