https://www.engineeringnews.co.za

Re-guarantee facility to benefit infrastructure sector SMEs

2nd March 2018

By: Nadine James

Features Deputy Editor

     

Font size: - +

The African Guarantee Fund (AGF) for small and medium-sized enterprises (SMEs) has entered into a re-guarantee transaction with GuarantCo, a division of Private Infrastructure Development Group (PIDG), to increase its capacity for SME financing.

The transaction will provide a platform for GuarantCo to support AGF and, consequently, partner with financial institutions supporting SMEs in the infrastructure sector.

The deal also facilitates local currency investment into infrastructure.

Through this increased capacity of $74-million, AGF will now be able to guarantee financing beyond its current limit, through risk sharing and risk assessment by the respective organisations.

Since inception, AGF has led the guarantee market in Africa by issuing financial guarantees to the tune of $690-million. This has enabled its partner financial institutions to issue loans estimated at $729-million to African SMEs.

Commenting on this partnership, AGF CEO Felix Bikpo stated, “AGF is glad to be joined by GuarantCo in providing the missing link for financial institutions to execute SME financing strategies effectively and bridging the infrastructure financing gap.

“This partnership will expand our capacity to enhance SME financing and mitigate risk to catalyse private sector development on the continent.”

GuarantCo CEO Lasitha Perera added that the collaboration between local currency-focussed guarantors offers the potential to engage local financial institutions and investors in financing the entire value chain in an African infrastructure project.

The transaction will enable AGF and GuarantCo to explore further partnership opportunities of working together in contributing towards economic growth in Africa

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
Magni SA
Magni SA

Magni SA is committed to developing the safest Telehandlers available to our customers for underground and surface mining, construction, forestry,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.087 0.14s - 150pq - 2rq
Subscribe Now