African Guarantee Fund is a pan-African, AA- Fitch-rated guarantee provider. Since 2011 we have shared credit risk with banks and other lenders, so businesses without heavy collateral can still borrow and grow.
Figures as reported in public sources.
Viable African businesses are often refused loans because they lack collateral, a long credit record or formal assets. Lenders see risk they cannot price, so they say no.
A partial guarantee changes that calculation. If a guaranteed loan is not repaid, AGF covers part of the lender's loss. The lender can approve more loans, ask for less collateral and lend for longer.
Banks across the continent use AGF guarantees to lend to more SMEs. A selection of publicly announced partners:
See more on Our work. Amounts as announced at signing.
A guarantee is only as good as the guarantor. AGF holds an AA- rating from Fitch and is backed by leading development finance institutions.
Partner lenders in 44 countries, from commercial banks to microfinance institutions and private equity funds.
We train partner lenders to assess SME risk, so lending continues well after a guarantee ends.
AGF is a specialised, non-bank financial institution headquartered in Nairobi, Kenya. Its mandate is to facilitate economic development and reduce poverty in Africa by improving small and medium enterprises' access to finance.
It was established in 2011 by the Government of Denmark (through DANIDA), the Government of Spain (through AECID) and the African Development Bank. It began with a focus on nine countries and now operates in more than forty.
Alongside the founders, shareholders include the French Development Agency (AFD), the Nordic Development Fund (NDF), the Investment Fund for Developing Countries (IFU), KfW Development Bank, Proparco and the West African Development Bank.
We work through partner financial institutions: commercial banks, non-bank lenders, microfinance institutions and private equity funds. They face the SME; we stand behind their lending.
AGF does not lend to businesses directly. We guarantee part of what an eligible lender provides, and we strengthen the lender's ability to serve SMEs. Here is the flow of risk and funds.
Stages describe the general approach. Your guarantee agreement sets the exact terms.
Enter a loan and a loss to see who bears what under 50% cover. The example is illustrative.
Cover is capped at 50% of the principal lent. The guarantee fee is 0.01 of the principal, paid before the agreement is executed.
Cover part of the principal a lender extends to eligible SMEs, individually or as a portfolio, so collateral requirements fall.
Help financial institutions raise funds from investors to scale up credit to eligible SMEs.
Support investors in funds and institutions that put equity into SMEs.
Backed by the Nordic Development Fund and IFU, it supports sustainable, private-sector-led growth.
Created with G7 countries, the Netherlands, Sweden and the AfDB to close the USD 49 billion gender financing gap.
Training and technical assistance that help lenders assess and manage SME risk.
Publicly announced partnerships. We guarantee lending, build lender capacity and reach underserved businesses.
A partnership providing up to USD 75 million in credit re-guarantees. AGF and BII typically cover up to 75% of partner lenders' SME loans, widening access to credit and cutting collateral requirements.
A renewed guarantee agreement, including cover for green-eligible SMEs. It follows three earlier agreements since 2015: a portfolio guarantee and two fundraising guarantees.
In January 2023 AGF partnered with the Frankfurt-based platform to place a partial default guarantee behind impact investments in African SMEs.
A pan-African programme encouraging lenders to finance women entrepreneurs and close a USD 49 billion gap.
TDB Group (Trade and Development Bank Group) was established in 1985 and is an African regional development finance group. It brings together TDB, the Trade and Development Fund (TDF), ESATAL, TDB Captive Insurance (TCI) and the TDB Academy.
In a joint transaction, TDF extended a USD 1 million debt facility to agribusiness SMEs in East Africa through Grassroots Business Fund. AGF enhanced it with a 50% partial risk guarantee, rising to 75% for women-led SMEs. About 16,000 small-scale farmers were supported in 2021.
We guarantee 50% of the principal amount lent by eligible lenders.
Download the application form (PDF)
Complete the form, sign it, and email it with your documents to info@africanguarantee.com. Or start online below.