The AfDB launches a guaranty fund for African SMEs
The African Development Bank has just launched a new $50 million guarantee fund for small and medium-sized enterprises.The African Development Bank (AfDB) has just launched a new $50 million (€38 million) guarantee fund for small and medium-sized enterprises (SMEs).
AfDB's Regional Director for East Africa Gabriel Negatu made this announcement on Thursday, Xinhua news agency reports.
"Contributors such as the AfDB have allocated a total of $50 million to the African SME Guarantee fund, which will be launched in June this year," he said.
According to figures from the International Forum on SME
Financing, held in Dakar in November 2011, SMEs in Africa account for around half of the continent's jobs.
However, a survey from the World Bank revealed that 40 percent of small and 30 percent of middle-size companies consider access to finance a major obstacle to the development of their activities.
SMEs often have difficulties accessing credit as it is granted upon guaranties required by lenders, which many struggle to provide.
This is why, according to Mr Neghatu, this fund will allow SMEs to obtain loans with accessible rates from financial institutions.