The African Export-Import Bank (Afreximbank) and the African Guarantee Fund (AGF) have signed a 30 million dollar re-guarantee facility to help African Small and Medium Enterprises (SMEs).
This was revealed by the Director, Trade Finance of Afreximbank, Gwen Mwaba, in a statement on Thursday.
According to Mwaba, the facility will give comfort to financial firms in lending to SMEs and will enable them transform their short term deposits into long term financing.
“The facility is expected to support positive social-economic changes among the more than 6,000 SMEs that are expected to gain access to guaranteed loans from African local banks,” he said.
“It will thereby contribute to trade development, economic growth and poverty reduction in the continent.”