WEST AFRICA – The African Guarantee Fund (AGF) has signed a landmark partnership agreement with Vista Group Holding to accelerate access to finance for small and medium-sized enterprises (SMEs).
Vista Group will also include women-led businesses in four West African countries: Burkina Faso, The Gambia, Guinea, and Sierra Leone, in the financing program.
By focusing on underserved markets, the partnership will promote financial inclusion by increasing access to finance for entrepreneurs, including women-owned SMEs, green businesses, and youth entrepreneurs.
“We are excited to partner with Vista Group, one of the largest leading players in the West African banking landscape,” said Jules Ngankam, Group CEO, AGF.
“This collaboration will leverage our combined expertise and resources to unlock the immense potential of SMEs in the region, and drive inclusive economic growth through increased access to financing.”
This collaboration will see AGF provide a loan portfolio guarantee of US$50 million to support Vista Group Holding’s lending activities to SMEs across its network in the four target countries.
The partnership aims to unlock growth opportunities for West Africa’s SMEs by scaling up SME financing and contributing to economic development in the region.
The AGF’s risk-sharing guarantee will mitigate potential risks associated with SME lending, bolstering the financial stability of Vista Group and its subsidiaries.
As a catalyst for regional collaboration, the partnership aligns with both AGF’s mission to promote economic development and reduce poverty in Africa, and Vista Bank Group’s ambition to become a leading pan-African financial institution focused on economic and financial inclusion.
“Partnering with AGF is a significant step in our mission to empower SMEs and contribute to financial inclusion across West Africa. This facility will enable us to expand our reach and provide crucial financial support to businesses that are driving economic development in these countries,” Yao Kouassi, Managing Director of Vista Group Holding, said.
“This aligns with our goal to expand our footprint beyond the Guinean Market to ECOWAS and the Central African Economic and Monetary Community (CAEMAC).”
Additionally, the partnership leverages the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program that aims to unlock up to US$3 billion in financing for Women SMEs in Africa through financial institutions.
“This partnership reflects the commitment of the African Development Bank, especially through the AFAWA initiative, to empower women entrepreneurs while promoting economic growth in the West African region,” said African Development Bank’s Togo Office Country Manager, Wilfrid Abiola.
AGF will also avail a capacity development program tailored to each subsidiary based on their needs to further enhance the impact of the guarantee.
This partnership marks a significant milestone in AGF’s and Vista Bank Group’s commitment to supporting SMEs and driving inclusive economic growth in West Africa.
By working together, the two organizations will empower entrepreneurs, create jobs, and contribute to a more prosperous future for the region.
Last year, the African Guarantee Fund (AGF) joined forces with Ecobank in a groundbreaking US$200 million risk-sharing agreement, aimed at catalyzing economic growth and supporting entrepreneurial ventures – including women-owned SMEs on the continent.
The US$200 million risk-sharing agreement marks the third renewal of Ecobank’s partnership with AGF. The initial guarantee, provided by AGF in 2013, covered seven countries with a total guaranteed portfolio of US$50 million.
In 2018, the scope of the guarantee expanded to encompass 14 countries, resulting in cumulative disbursements of US$230 million since that time. The renewed partnership now extends to 27 countries within Ecobank’s African network, offering 50% coverage for qualifying SMEs across all target markets.
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