African Guarantee Fund to provide loans to environmentally-friendly firms
The African Guarantee Fund (AGF) has announced it will be offering small firms that adhere to being environmentally friendly “affordable” loans.
The Nairobi-based lender has set aside Sh2.6bn (US$25.8mn) to lend to small and medium enterprises (SMEs) within the energy, infrastructure, agri-business, and green growth industries. The initiative aims to enhance and empower small firms, allowing them to handle big ticket jobs through local currency-dominated funds.
“Strengthening African Small and Medium Enterprises (SMEs) is critical to enhancing their global competitiveness in the development agenda,” remarked Felix Bikpo, CEO of AGF. “With this increased capacity, AGF will support larger local currency transactions for SMEs involved in all sectors.” The fund partnered with the Investment Fund for Developing Countries (IFU), receiving a Sh1.55bn ($15.4mn) injection.
IFU also offered Sh200mn ($2mn) to the Capacity Development Fund in the form of a grant, along with the Nordic Development Fund, which donated Sh150mn ($1.49mn). (African Business Review)