Specialised guarantee provider African Guarantee Fund (AGF) and financial services firm Vista Group have signed a partnership agreement to accelerate access to finance for small and medium-sized enterprises (SMEs) including women-led businesses in four West African countries, namely Burkina Faso, The Gambia, Guinea and Sierra Leone.
AGF will provide a loan portfolio guarantee of $50-million to support Vista Group’s lending activities to SMEs across its network in the four target countries.
The partnership aims to unlock growth opportunities for West Africa’s SMEs by scaling up SME financing and contributing to economic development in the region, the companies say.
"By focusing on underserved markets, the partnership will promote financial inclusion by increasing access to finance for entrepreneurs, including women-owned SMEs, green businesses and youth entrepreneurs.
"The AGF’s risk-sharing guarantee will mitigate potential risks associated with SME lending, bolstering the financial stability of Vista Group and its subsidiaries," the companies say.
“We are excited to partner with Vista Group, which is one of the largest players in the West African banking landscape. This collaboration will leverage our combined expertise and resources to unlock the immense potential of SMEs in the region, drive inclusive economic growth through increased access to financing,” comments AGF Group CEO Jules Ngankam.
The partnership, as a catalyst for regional collaboration, aligns with AGF's mission to promote economic development and reduce poverty in Africa, and Vista Bank Group's ambition to become a leading pan-African financial institution focused on economic and financial inclusion.
Additionally, the partnership leverages the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth programme that aims to unlock up to $3-billion in financing for women SMEs in Africa through financial institutions.
“This partnership reflects the commitment of the African Development Bank (AfDB), especially through the AFAWA initiative, to empower women entrepreneurs while promoting economic growth in the West African region,” says AfDB Togo Office country manager Wilfrid Abiola.
“With 20% of this transaction allocated to women-led SMEs, along with tailored technical assistance support provided by AFAWA, Vista Group is taking the commitment to de-risk women-led businesses in their portfolio and making great strides in transforming access to finance for women-led SMEs in low-income countries and fragile States,” he adds.
AGF will also avail a capacity development programme tailored to each subsidiary based on their needs to further enhance the impact of the guarantee, the partner companies say.
This partnership marks a significant milestone in AGF’s and Vista Bank Group’s commitment to supporting SMEs and driving inclusive economic growth in West Africa. By working together, the two organisations will empower entrepreneurs, create jobs and contribute to a more prosperous future for the region, they say.