The African Guarantee Fund Group, through its subsidiary AGF West Africa, and the Orabank Group, have concluded a portfolio guarantee agreement for a 60bn FCFA worth $100m, aimed at supporting Small and Medium scale Enterprises through its various subsidiaries in West Africa.
According to a statement, the partnership agreement was signed by the AGF Group Chief Executive Officer, Jules Ngankam and the Chief Executive Officer of Orabank group, Ferdinand Ngonkemoum.
The PUNCH reported that the statement noted that the strengthening of the partnership between the two institutions would allow Orabank Group to play a major role in the development of the economies where it operates by providing a solution to the thorny issue of access to financing for the SMEs.
Ngankam said, “African Guarantee Fund Group is committed to working with its financial partners to promote economic development, increase job creation and reduce poverty in Africa by providing guarantee solutions and capacity-building support specifically to support SMEs.
“The Orabank Group is a leading player in the financing of African economies due to its geographical presence, focus on SMEs and financial strength. Our partnership with the Orabank Group will, therefore, allow us to play our major role in promoting the financing of African SMEs.”
On his part, the Managing Director, Orabank Group, Ferdinand Ngonkemoum, welcomed the new partnership with the African Guarantee Fund Group as a strong symbol of the African SMEs’ development.
He said, “This portfolio guarantee will strengthen Orabank’s ability to finance SMEs with innovative solutions adapted to the risk management and development cycle. Moreover, this portfolio guarantee is fully in line with our strategic plan to effectively support SMEs in all aspects of their ecosystem, in line with our pan-African vision to participate in the economic and social development of the private sector in the 12 countries where we have operations.”
He explained that the agreement came on the heels of three previous agreements signed between the two financial institutions since 2015 including a portfolio guarantee and two fundraising guarantees that have enabled the Orabank Group to finance thousands of SMEs in its countries of operation, achieve strong financial performance, and contribute sustainably to the growth of these economies.