Personal tools

2nd March 2018

African businesses set to benefit from PIDG guarantee

GuarantCo partners with African Guarantee Fund to boost loans to infrastructure SMEs

The African Guarantee Fund (AGF) for small and medium-sized enterprises (SMEs) has entered into a re-guarantee transaction worth up to US$74m with PIDG company GuarantCo, increasing its capacity for SME financing.

SMEs have a large and growing impact on GDP in emerging markets and are a key source of job creation. As a result of the guarantee, AGF will be able to support larger local currency transactions for businesses involved in infrastructure.

Lasitha Perera, GuarantCo’s chief executive officer, said: “This collaboration between two local currency focussed guarantors offers the potential for us to engage local financial institutions and investors in financing the entire value chain of the continent’s infrastructure projects.”

The transaction will also enable AGF and GuarantCo to explore further joint opportunities to contribute to economic growth in Africa.

Read the full press release here.