USAID supports a programme to improve SME access to finance in Guinea

Jul 27, 2012

The US agency for international development (USAID) announced on July 20th that it will grant 26 million dollars (€ 21,1 million) to a programme aimed at improving access to finance for small and medium-sized enterprises (SMEs) in Guinea.

The US agency for international development (USAID) announced on July 20th that it will grant 26 million dollars (€ 21,1 million) to a programme aimed at improving access to finance for small and medium-sized enterprises (SMEs) in Guinea.

The Development Credit Authority programme (DCA), created in partnership with Ecobank, is a portfolio guarantee allowing Guinean SMEs to access credit and microfinance institutions for a period of five years in order to stimulate business growth and economic development.

Stephen Fakan, an official at the Embassy of the United States, told Le Jour Guinée newspaper that the DCA provides a guarantee of 50 percent on loans of up to $5 million (€4 million).

This support encourages entrepreneurs in Guinea and also allows Ecobank Guinea to extend its product range to a wider clientele.

According to the African Economic Outlook website, microfinance activities continue to grow at a fast pace in Guinea, with a net increase in deposits and loans.

The financial sector has seen positive changes since 2011, notably through the efforts of the World Bank to strengthen the monitoring and control of banking institutions and microfinance.

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