AGF’s $1 Billion Boost for African SMEs: New Partnership Unveiled

In a decisive step towards bolstering Africa’s economic resilience, the African Guarantee Fund (AGF), headquartered in Mauritius, and Equity Group Holdings—East Africa’s banking titan—have announced a groundbreaking new agreement. This alliance, forged in Nairobi on June 15, 2023, marks a pivotal moment in the continent’s quest to empower its micro, small, and medium-sized enterprises (MSMEs), with a staggering USD 500 million framework aimed at transforming the regional financial landscape.

At the heart of this alliance stands Juneid Kodabux, the esteemed Deputy Legal Director of AGF, representing Mauritius with unwavering dedication.

His presence in Nairobi underscores Mauritius’s vital role in this ambitious initiative, which seeks to unlock up to USD 1 billion in loans for SMEs across Kenya, Uganda, Rwanda, Tanzania, and the Democratic Republic of Congo.

The stakes could not be higher: the programme aspires to create or safeguard over 50,000 jobs, with a strategic focus on empowering youth-led, women-led, and green economy enterprises—those most vital to Africa’s sustainable future.

This is not the first chapter in the collaboration between AGF and Equity.

Since 2018, their joint efforts have already facilitated USD 160 million in loans to nearly 2,000 SMEs, including 500 women-led firms and 900 businesses helmed by young entrepreneurs.

These figures serve as a testament to their sustained commitment and the profound impact of their partnership.

Dr James Mwangi, CEO of Equity Group, delivered a stirring affirmation during the signing ceremony:

“This partnership exemplifies our unwavering commitment to fostering inclusive growth across Africa. Micro, small, and medium-sized enterprises are the engines driving our economies forward.”

His words echo across the continent, reinforcing the vital importance of supporting grassroots entrepreneurs to ignite broader economic transformation.

Jules Ngankam, CEO of AGF, echoed this resolve: “Our goal is to ensure more SMEs have access to vital funding, enabling them to grow, innovate, and generate employment—fundamental pillars for Africa’s development.”

His statement underscores the strategic importance of this alliance in driving job creation and economic stability.

Founded in 2011 by the African Development Bank, with support from Denmark and Spain, AGF has established itself as the continent’s premier guarantee fund.

With partnerships spanning 44 countries and over USD 4.3 billion in guarantees, AGF has empowered more than 37,000 SMEs and contributed to the creation of an astonishing 400,000 jobs.

Its mission remains clear: to unlock capital and opportunity across Africa’s diverse economies.

Juneid Kodabux, based in Port Louis, reaffirmed Mauritius’s central role in this endeavour.

His remarks highlighted that AGF’s Mauritian roots not only demonstrate the resilience and strength of the nation’s international financial centre but also underscore Mauritius’s expanding influence within strategic alliances aimed at African development.

As he stated, “This positioning elevates the visibility and expertise of Mauritius on the pan-African stage, opening doors for local talents and institutions to shape the continent’s future.”

As Africa faces an urgent imperative to accelerate economic growth and job creation, this historic agreement between AGF and Equity Group signals a beacon of hope—an unyielding commitment to transforming countless lives and laying the foundation for a resilient, inclusive future across the continent.

Source: l’Express