The African Export-Import Bank (Afreximbank) together with the African Guarantee Fund recently signed a US$30million agreement that will support and boost African small and medium-sized enterprises in the trade value chains, ensuring access to funds for their daily and ongoing activities.
Signed by Gwen Mwaba, the Director of Trade Finance and Constant Nzi, the Chief Risk Officer of AGF – the agreement will provide the funds that can be used to support the financial needs of African SME’s through giving them access to long-term financing. Ultimately, this agreement will serve as a catalyst to help enterprises within African to grow, create more jobs while keeping their current labour force and subsequently develop intra and extra-African trade.
As SME’s are notably the backbone and engine that drives economic development – accounting for almost 90% of the business in leading and developing nations, with this agreement, the facility is expected to support positive social-economic changes within the 6,000 plus SME’s that are currently on track to gain access to the guaranteed loans.
Experts predict that SME’s will ultimately contribute to the development of Africa, pushing the content into a competitive position on the world’s stage through innovation, job creation in unemployed communities, and providing services billions of Africans.