African Guarantee Fund and responsAbility Partner to Boost Agri-SME Financing in Africa
African Guarantee Fund (AGF) has partnered with one investment vehicle managed by responsAbility Investments AG (responsAbility) through a Loan Portfolio Guarantee facility amounting to $5 million. The partnership is entirely dedicated to increasing the financing of small and medium enterprises (SMEs) in the agricultural value chain with a focus on businesses engaged in activities related to crops and farming products or commodities.
Africa’s agri-SMEs face numerous challenges that hinder them from achieving their full potential mainly: access to finance that is appropriate and accessible for different stages of growth; access to talent and the ability to attract and retain qualified employees; an ecosystem of support and collaboration between public, private, and financial players; access to knowledge that strategically supports development; and access to markets, including information, connections with suppliers and clients, and physical infrastructure. This partnership will therefore play a critical role in bridging the estimated $74 billion annual financing gap facing agri-SMEs in Sub-Saharan Africa.