Kenya: African Guarantee Fund partners with two banks to increase access to credit for SMEs
The African Guarantee Fund (AGF), a Pan African Fund based in Nairobi, has partnered with two commercial banks for onward lending to small and medium sized enterprises (SMEs), it has been revealed.On Wednesday (March 20th), it reached an agreement with Investments & Mortgages (I &M) bank on for Sh100 million (€915,500), Ventures report.
The following Thursday, the AGF signed a Sh200 million guarantee loan with Kenya’s largest privately owned bank, the Commercial Bank of Africa (CBA).
“We are aware of the struggles that many entrepreneurs in the SME sector face in raising capital for their businesses,” said CBA chief executive Jeremy Ngunze, quoted by Ventures.
“It is as a result of the inadequate access to finance that CBA is happy to be associated with AGF, because our agreement will help businesses get innovative credit solutions and thereby support their growth.”
The AGF was set up to significantly increase access to finance of African SMEs. It launched in Kenya in June 2012 and also has a presence in Cameroun, Ghana, Mali, Mozambique, Senegal, Tanzania, Uganda and Zambia.