In Senegal, SMEs make up 98% of the economy, yet they only access 9% of available credit, largely due to the banking sector's reluctance to lend.
The African Guarantee Fund West Africa (AGF WA) has signed a CFA3 billion ($5 million) financing guarantee agreement with BGFIBank Senegal to support small and medium-sized enterprises (SMEs) in the country. The deal, finalized on October 21 in Lomé, Togo, will enable BGFIBank to offer over CFA6 billion in loans to Senegalese SMEs.
“With this guarantee, we are empowering BGFIBank to support more SMEs. Across Africa, SMEs are key drivers of job creation. Supporting them means preserving jobs, creating new ones, and helping reduce poverty,” said Sabine Lawson, Deputy Managing Director of AGF WA.
BGFIBank Senegal CEO Khady Boye Hanne explained that this partnership stems from a framework agreement established in 2022 with the BGFIBank Group in collaboration with the African Development Bank (AfDB). The agreement includes a total portfolio guarantee line of €50 million, expected to be channeled toward the group’s subsidiaries.
“SMEs make up 98% of our economy but only receive 9% of available credit. The AGF WA guarantee will help close this gap,” Hanne said.
SMEs in West Africa, including Senegal, face major hurdles such as lack of collateral, organizational challenges, and the financial sector's hesitancy to lend. In 2021, Senegal’s Ministry of Economy, Planning, and Cooperation estimated the country’s SME financing gap at over CFA800 billion.
Julie Oye, Head of Risk Management at BGFIBank Holding, noted that Senegal's growing oil industry has sparked the emergence of many new SMEs, further driving the need for financing.
AGF WA emphasized that this agreement marks just the beginning of a broader strategy to extend its guarantee solutions to other African countries.
It’s a common scene in any Lomé (Togo) market, but it’s telling. A customer hands a 10,000 CFA franc...
Egypt’s handset market is projected to leap from $2.5 billion in 2025 to $4.8 billion by...
Burkina Faso ends Target Malaria, a GMO mosquito project funded by the Gates Foundation. The ...
Egypt and UNECA launched a five-day workshop in Cairo to strengthen maritime tax audits and IFRS-b...
Sadot and Vodacom’s MOTI launch Africa’s first telco-powered farm-to-fork app to cut crop losses a...
Southern Africa's critical minerals are vital but underused due to systemic issues, per the WEF, DBSA, and McKinsey report. Policy uncertainty, poor...
Africa’s airlines are renewing fleets with modern jets, driving demand for advanced maintenance and repair services. The continent’s MRO market is...
Namibia has launched a national campaign to renovate dilapidated schools across all 14 regions and 121 constituencies. The initiative aims to upgrade...
Burkina Faso and Oman have signed a landmark investment agreement focusing on strategic sectors: mining, agriculture, and energy. The partnership,...
• Grand Egyptian Museum to open November 1 near Giza Pyramids• TikTok named official digital partner for live-streamed ceremony• GEM to display 100,000+...
• Brazzaville hosts first Mwassi festival for African women filmmakers• Festival offers screenings, panels, and professional training workshops• Women...