The African Guarantee Fund Group (AGF), through its subsidiary AGF West Africa, and the Orabank Group have finalized a portfolio guarantee agreement for a total amount of 60 billion FCFA (100 million USD).
The partnership agreement was signed by the AGF Group Chief Executive, Mr. Jules NGANKAM, and the Chief Executive Officer of Oragroup, Mr. Ferdinand NGON KEMOUM, in the presence of the entire Top Management from both institutions, and with the aim of increasing the financing capacity of the Orabank Group in favour of SMEs through its subsidiaries in West Africa.
Ferdinand NGON KEMOUM welcomed the new partnership with the AGF Group, as a strong symbol of the African SMEs’ development. The fund is a powerful illustration of the possible synergies between pan-African groups that share a sustainable and responsible development approach.
According to Mr. Ferdinand NGON KEMOUM, the strengthening of the partnership between the two institutions will allow Orabank Group to play a major role in the development of the economies where it operates, by providing a solution to the thorny issue of access to financing for SMEs.
“This portfolio guarantee will strengthen Orabank’s ability to finance SMEs with innovative solutions adapted to their risk management and development cycle.
“Moreover, this portfolio guarantee is fully in line with the strategic plan to effectively support SMEs in all aspects of their ecosystem, the pan-African vision to participate in the economic and social development of the private sector in the twelve countries where we have operations.”Ferdinand NGON KEMOUM
Increasing Women Access To Finance And Promoting Economic Development
Jules NGANKAM, AGF Group Chief Executive, disclosed that, the partnership is supported by the AfDB’s Affirmative Finance Action for Women in Africa (AFAWA), and will therefore increase financing for women entrepreneurs in the region.
The guarantee will also cover SMEs eligible for green financing, he revealed.
“African Guarantee Fund Group is committed to working with its financial partners to promote economic development, increase job creation and reduce poverty in Africa by providing guarantee solutions and capacity building support specifically to support SMEs.”Jules NGANKAM
Jules NGANKAM also mentioned that, the Orabank Group is a leading player in the financing of African economies due to its geographical presence, focus on SMEs and financial strength.
“Our partnership with the Orabank Group will therefore allow us to play our major role in promoting the financing of African SMEs.”Jules NGANKAM
As African Guarantee Fund (AGF) aims at facilitating access to finance for Small and Medium Enterprises (SMEs), to enable them fully play their role of driving Africa’s economic growth, the fund provides partial credit guarantees and capacity development assistance to its Partner Financial Institutions.
AGF has so far issued guarantees amounting to approximately USD 1.8 billion which have unlocked more than USD 3 billion of SME financing, through its 200 Partner Financial Institutions across 40 African countries.