African Guarantee Fund (AGF) (https://AfricanGuaranteeFund.com) and Nigeria’s Bank of Industry (BOI) have signed a USD 50 Million Loan Portfolio Guarantee framework in a bid to propel Nigeria’s industrial sector by providing financial and business support services to enterprises. The agreement that was signed at the Africa Investment Forum in Rabat is backed by African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative.
The transaction will be phased out in three tranches over a 10-year period and will significantly scale up BOI’s lending to Small and Medium Enterprises (SMEs) in Nigeria.
The partnership includes a comprehensive risk sharing mechanism that focuses on supporting MSMEs, Women-Owned enterprises and Green businesses to promote environmental sustainability and gender equity.
Speaking during the signing ceremony, AGF Group Chief Executive Officer, Mr. Jules Ngankam said “This transaction with the leading Development Finance Institution in Nigeria is a great milestone that will significantly impact Nigeria’s economy by unlocking up to USD 100 million in financing for SMEs. AGF will also provide tailored guarantees and technical assistance towards the special SME products offered by BOI, targeting Women, Youth and Green Businesses.”
The MD/CEO of the Bank of Industry, Dr. Olasupo Olusi, said, “BOI is excited to leverage the guarantee framework of the African Guarantee Fund in promoting sustainable growth, gender equity, innovation and advancing more credit to SMEs in Nigeria in line with President Bola Tinubu’s government’s Renewed Hope agenda”.
Dr. Beth Dunford, Vice President for Agriculture, Human and Social Development said, “This strategic partnership illustrates the commitment of the African Development Bank, especially the Affirmative Finance Action for Women in Africa (AFAWA) initiative, to empower women entrepreneurs and foster economic growth in Nigeria. It is not just a financial transaction aimed at supporting and catalysing the growth of small and medium enterprises in Nigeria; it is a beacon of hope and progress for African businesses, particularly for those led and owned by women.”
This agreement signifies the start of a long-term strategic relationship, and it provides a perfect intersection of the AGF’s mission to unlock financing for SMEs, and BOI’s mandate to catalyse Nigeria’s industrialization and economic transformation.
Distributed by APO Group on behalf of African Guarantee Fund.
Media Contacts:
Diana Aluga
Group Communications & Public Relations Officer
African Guarantee Fund
Info.communications@agf.africa
Theodora Amechi
Divisional Head Public Relations
Bank of Industry (BOI)
Strategiccommunications@boi.ng
Bony Kamanzi
AFAWA Communication Officer
media@afdb.org
About the African Guarantee Fund (AGF):
African Guarantee Fund is a specialized guarantee provider whose mission is to facilitate economic development and poverty reduction in Africa. To achieve this, AGF increases access to finance for Small and Medium-sized Enterprises (SMEs) across key economic sectors through an array of guarantee products and capacity development assistance. Since inception, AGF has unlocked more than USD 5 billion in SME financing, through partnerships with 250 partner financial institutions across 44 African countries.
AGF is backed by the following shareholders and sponsors: The Government of Denmark through the Danish International Development Agency (DANIDA), the Government of Spain through the Spanish Agency for International Cooperation (AECID), the African Development Bank (AfDB), French Development Agency (AFD), Nordic Development Fund (NDF), Investment Fund for Developing Countries (IFU), German Development Bank (KfW), French Agency for Private Sector (PROPARCO), West African Development Bank (BOAD), Global Affairs Canada (GAC), USAID’s West Africa Trade & Investment Hub (WATIH), TechnoServe and NORAD.
African Guarantee Fund is rated AA- by Fitch Ratings
About Bank of Industry (BOI):
Nigeria’s Oldest and Most Successful DFI
The Bank of Industry Limited (BOI) is Nigeria’s oldest, largest and most successful development financing institution (DFI).It was incorporated in 1959 as the Investment Company of Nigeria (ICON) Limited and reconstructed into Nigerian Industrial Development Bank (NIDB) in 1964 under the guidance of the World Bank. The International Finance Corporation, which produced its pioneer Chief Executive, held 75% of its equity along with a number of domestic and foreign private investors.
The Bank transformed into the Bank of Industry in 2001, following the merger of the mandates on NIDB, Nigeria Bank for Commerce and Industry (NBCI), and the National Economic Reconstruction Fund (NERFUND) with an authorised share capital of N50 billion. In order to put the Bank in a better position to address the nation’s rising economic profile in line with its mandate, the share capital was increased to N250 billion in 2007 and subsequently increased to N500 billion.
The Bank of Industry has the mandate to transform Nigeria’s industrial sector by providing financial assistance for the establishment of large, medium and small enterprises, and rehabilitation of ailing ones; the Bank is aims to drive expansion, diversification, and modernisation, of existing enterprises. The Bank supports projects with potential developmental impact, and the capability to generate considerable multiplier effects such as industrialisation, job creation, and poverty alleviation, all of which would have significant positive effects on the socio-economic condition of Nigerians.
The Bank continues to support growth across various sectors with particular focus on MSME, Gender Businesses, Infrastructure, Youth Development, Technology, Climate and Sustainability.
About the Affirmative Finance Action for Women in Africa (AFAWA):
The Affirmative Finance Action for Women in Africa (AFAWA) is an African Development Bank’s initiative contributing to bridge the $49 billion access to finance gap for women in Africa. AFAWA aims to unlock $5 billion in financing for women-owned and women-led small and medium enterprises by 2026. The initiative is supported by the African Development Bank’s partners and donors: the Women’s Entrepreneurs Finance Initiative (We-Fi), G7 participating countries Canada, France, Germany and Italy as well as the Netherlands and Sweden. Through AFAWA, the African Development Bank has approved $2.4 billion of investment to the benefit of more than 18,600 women entrepreneurs in 44 countries, channelled through 185 financial institutions.
