Kenya: Gulf African Bank and AGF partner to boost SMEs' access to finance

May 03, 2013

Gulf African Bank and the African Guarantee Fund (AGF) have signed a Sh100 million (€908,400) agreement to support lending to small and medium-sized enterprises (SMEs) in Kenya by sharing the risks associated with lending to small businesses.

Gulf African Bank and the African Guarantee Fund (AGF) have signed a Sh100 million (€908,400) agreement to support lending to small and medium-sized enterprises (SMEs) in Kenya by sharing the risks associated with lending to small businesses.

Speaking after the signing in Nairobi, Gulf African Bank Managing Director Asad Ahmed said the deal will also help
boost
financing and risk management capabilities, Capital FM reports.

The African Guarantee Fund
has also has partnered last month with two commercial banks (I&M and CBA) for onward lending to SMEs.

This fund was set up to significantly increase access to finance
for
African SMEs. It launched in Kenya in June 2012 and also has a presence in Cameroun, Ghana, Mali, Mozambique, Senegal, Tanzania, Uganda and Zambia.

Inadequate access to capital has been cited as a key challenge to the development of SMEs in Africa,
with many struggling to present the guarantees required by banks and other finance institutions.ADNFCR-2976-ID-801579703-ADNFCR