ECB partners with AGF to boost small scale traders
04 March 2014, 16:53
Nairobi - Small and medium enterprise (SMEs) owners will benefit from a partnership that was signed between the Equatorial Commercial Bank (ECB) and the African Guarantee Fund (AGF).
The partnership which was signed on Monday will see the entrepreneurs have access more funds to run their businesses.
AGF has committed to a maximum of KES 212 million in the facility that will run for 5 years.
The loans have been structured as a revolving fund in 2 phases, the short term being 0-3 years while the medium term loan being between 3-5 years.
Speaking at the event, ECB Managing Director said their objective is to capture the SME retail market segment and this would be achieved by the agreement which will allow more businesses to access financing, hence realizing their goal.
On his part, AGF CEO Felix Bikpo said, “AGF is the link that will enable African banks execute their SME banking strategies effectively, while bringing their businesses to required scale and thus enabling SMEs to play their expected role in fostering African economic development.”
“This partnership with ECB will enable an increased number of SMEs to secure financing and strengthen the retail sector,” he added.
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