The African Guarantee Fund (AGF) has entered into a significant partnership agreement with Vista Group Holding to enhance access to finance for small and medium-sized enterprises (SMEs) in four West African countries: Burkina Faso, The Gambia, Guinea, and Sierra Leone.
Under the collaboration, AGF will provide a loan portfolio guarantee of $50 million to support Vista Group Holding’s lending activities to SMEs in the specified countries. This initiative aims to unlock growth opportunities for West Africa’s SMEs, focusing on underserved markets and promoting financial inclusion. The partnership targets increased access to finance for entrepreneurs, including women-owned SMEs, green businesses, and youth entrepreneurs.
The risk-sharing guarantee from AGF is designed to mitigate potential risks associated with SME lending, contributing to the financial stability of Vista Group and its subsidiaries. The collaboration aligns with AGF’s mission to promote economic development and reduce poverty in Africa, as well as Vista Bank Group’s ambition to become a leading pan-African financial institution with a focus on economic and financial inclusion.
The partnership leverages the Affirmative Finance Action for Women in Africa Guarantee for Growth program, aiming to unlock up to $3 billion in financing for women-led SMEs in Africa through financial institutions. Additionally, AGF will provide a capacity development program tailored to each subsidiary’s needs to enhance the impact of the guarantee.
This collaboration represents a significant milestone in the commitment of AGF and Vista Bank Group to supporting SMEs and fostering inclusive economic growth in West Africa. The partnership is expected to empower entrepreneurs, create jobs, and contribute to a more prosperous future for the region.
