African Guarantee Fund (AGF) Receives US$ 33 million from Germany-based KfW Development Bank

German lender, KfW Development Bank has injected US$ 33 million into African Guarantee Fund (AGF).

AGF is a Pan-African financial institution that promotes economic development, increases employment and reduces poverty in Africa by providing financial institutions with guarantees and other financial products specifically intended to support Small and Medium-sized Enterprises in Africa.

AGF Group CEO, Felix Bikpo, said, ” This capital injection will go a long way in ensuring that we continue to make a positive impact in the continent. So far, we have cumulatively issued more than $1 billion worth of guarantees, making available about $1.7 billion for SME financing through our Partner Financial Institutions. This has led to the creation of more than 100,000 additional jobs.”

AGF will channel the funds towards bridging the gender financing gap by funding women-owned or women-led businesses.

The gap currently stands at US$ 42 billion.

Related article: AfDB Supports Tony Elumelu Entrepreneurship Programme With $5m Grant

AGF has also partnered with the African Development Bank(AfDB) through the Affirmative Finance Action For Women in Africa (AFAWA).

AFAWA currently has the support of the G7 countries which commited US$ 251 million into the initiative.

The AGF was set up by the AfDB alongside the governments of Spain and Denmark.

AGF, established in 2012, has since guaranteed 20,000 African SMEs from different economic sectors.