AGF to issue $25m worth of guarantees to four Ghanaian banks

The African Guarantee Fund (AGF) will by next month issue $25 million worth of guarantee to four Ghanaian banks, its CEO has said.

According to Mr Felix A. Bikpo, the Fund is reviewing some projects brought forward by these banks for guarantees.

“We are reviewing some projects coming from some Ghanaian banks and I hope by this month (June) we will be issuing like $25 million worth of guarantees for them,” Mr Bikpo told ghanabusinessnews.com in an interview at the ongoing 2013 African Development Bank (AfDB) Annual Meetings in Marrakech, Morocco.

Mr Bikpo however did not disclose the names of the four Ghanaian banks requesting for guarantees for their projects but tells ghanabusinessnews.com that “one of them is part of a banking group”.

He added that the AGF signed a master guarantee agreement with the banking group which Ghanaian allocation is part.

Mr Bikpo stated that Ghana is in fact part of the first phase of the AGF’s expansion plan, explaining that each country has been allocated 10% of the Fund’s current capital.

“Anytime my [AGF] capital increases, country percentage also increases,” he added.

The AGF was initiated in 2010 and was officially launched in June 2012 in Tanzania. It is a joint venture between the AfDB, the Danish and Spanish governments.

AGF was set up to enable African SMEs to access financing.

By Ekow Quandzie in Marrakech, Morocco