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Ecobank agrees $200 million risk-sharing deal for SMEs in Africa

Published

1 year ago

November 18, 2023

Ecobank has signed a new $200 million risk-sharing deal with the African Guarantee Fund (AGF) which will allow the disbursement of cheap loans to countries across Africa.

Under the arrangement, small and medium enterprises in Kenya, Uganda, Tanzania, Rwanda, and 23 other African countries will be able to access funds from the bank, which is to date the largest risk-sharing agreement on the continent.

To expand access to financing for SMEs and green businesses across the continent, the guaranteed agreement was signed on Thursday on the fringes of the African Financial Industry Summit (Afis) in Lomé, Togo.

SMEs are more likely than large firms to rely on internal funds or cash from friends and family for the launch and initial running of their enterprises.

AGF, a private sector credit guarantor based in Nairobi, will guarantee up to 75% of loans to women-led and environmentally conscious businesses, and 50% of loans to small and medium-sized enterprises (SMEs) across the continent. This arrangement will increase the accessibility and affordability of credit for these businesses.

The CEO of Ecobank Group, Jeremy Awori, stated that the risk-sharing agreement would promote the creation of jobs, business expansion, innovation, and environmentally friendly solutions for the continent by increasing credit extension to SMEs in 27 of the 35 markets they serve.

“Through this partnership, we are taking bold steps to enhance green financing and gender financing. In doing so, we aim to eliminate the rigorously restrictive requirement for collateral, particularly hindering women-focused businesses’ access to credit,” Mr. Awori said during the signing of the agreement in Lomé on Thursday.

“This partnership will catalyse close to $1 billion of financing for SMEs, who are the real drivers of growth in African economies,” said AGF CEO, Jules Ngankam.

According to the World Bank, SMEs account for the majority of businesses worldwide and are significant contributors to job creation and global economic development.

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Moroccan annual inflation rises to 0.8% in November

Published

4 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

1 day ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”