British International Investment (BII) and African Guarantee Fund (AGF) have signed a US$75 million re-guarantee agreement to facilitate funding of SMEs across the African continent. According to the deal, AGF will offer credit guarantees of up to 75% to partnering financial institutions to cover the risks of SME loans while focusing on those facing the most significant challenges. This development will facilitate access to credit among SMEs while also relaxing their collateral requirements. The agreement would last for eight years, and during this period, US$150 million will be given away in loans to 17,300 SMEs through partner financial companies.
