Assessing Credit Guarante Schemes for SME finance in Africa
Sep 01, 2011 | Dalberg Global Development Advisors, AFD | Dalberg Global Development Advisors, AFD
This report assesses credit guarantee schemes (CGSs) in Ghana, Kenya, South Africa and Tanzania, by investigating the entire supply chain running from credit guarantee provider to banks (and other financial institutions) and ultimately to small and medium sized enterprises (SMEs). The report explores the challenges faced by SMEs in the study countries, and examines the degree to which banks are meeting the finance needs of these firms. Drawing on interviews, surveys and focus groups engaging over 100 organizations, the report also analyzes the landscape of bank finance to SMEs and, more comprehensively, the landscape of credit guarantee schemes that are hoping to leverage increased bank financing for underserved firms. From these investigations, the report develops a framework to assess credit guarantee scheme features and performance, and identified lessons from its findings.