The African Guarantee Fund, a non-banking financial institution, and the West African Development Bank (BOAD) are strengthening their partnership with the creation of innovative financing schemes.
The two entities last Wednesday held in Nairobi, Kenya, “fruitful exchanges” on the creation of innovative financing mechanisms, with “greater potential to increase the financing of sustainable projects in West Africa.”
The meeting, led by Jules Ngankam, Group Managing Director of the African Guarantee Fund and Serge Ekue, who heads BOAD, focused on strengthening the partnership between the two institutions.
The heads of the two institutions discussed the development of innovative financing tools with an eye on the risks and returns that can meet the needs of institutional investors.
The mechanism will also include mainstream investors in order to significantly increase the flow of funds to the private sector.
The objective of the African Guarantee Fund is to promote economic development, increase job creation, and alleviate poverty in Africa by providing guarantee solutions to financial institutions.
African Guarantee Fund (AGF) is rated AA- by Fitch Ratings.
The institution also provides capacity building support, specifically to prop up SMEs in Africa.
The AGF was established by the Danish government through the Danish International Development Agency (DANIDA), Spain through the Spanish Agency for International Cooperation and Development (AECID) and the African Development Bank (AfDB).
Other shareholders include Agence Française de Developpement (AFD), the Nordic Development Fund (NDF), the Investment Fund for Developing Countries (IFU) and KfW Development Bank.
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