Empowering Women Entrepreneurs and Small and Medium Enterprises (SMEs) in Nigeria: African Guarantee Fund and Bank of Industry Sign USD 50 Million Guarantee Framework Agreement
African Guarantee Fund (AGF) (https://AfricanGuaranteeFund.com) and the Bank of Industry of Nigeria (BOI) have signed a US$50 million loan portfolio guarantee framework aimed at promoting the development of Nigeria’s industrial sector by providing financial and commercial support services to enterprises. The agreement was signed at the African Investment Forum in Rabat and is supported by the African Development Bank’s Affirmative Financial Action for Women in Africa (AFAWA) initiative.
The deal will be phased out in three phases over 10 years and will significantly increase the size of BOI’s lending to Nigerian small and medium-sized enterprises (SMEs).
The partnership includes a comprehensive risk-sharing mechanism focused on supporting MSMEs, women-owned businesses and green businesses to promote environmental sustainability and gender equality.
Speaking at the signing ceremony, AGF Group CEO Mr. Jules Ngankam said: “This deal with Nigeria’s leading development finance institution is a great milestone that will have a significant impact on Nigeria’s economy by providing financing of up to US$100 million to small and medium-sized enterprises. AGF will also provide tailored guarantees and technical assistance on special SME products offered by the BOI for women, youth and green businesses.”
Dr. Olasupo Olusi, Managing Director/CEO, Bank of Industry said: “BOI is pleased to leverage the African Guarantee Fund’s guarantee framework to promote sustainable growth, gender equality, innovation and provide greater access to credit to Nigerian SMEs. With Bola ·The New Hope Agenda of President Tinubu’s Administration”.
Dr Beth Dunford, Vice President for Agriculture, Human and Social Development, said: “This strategic partnership reflects the commitment of the African Development Bank, in particular the Affirmative Financial Action for Women in Africa (AFAWA) initiative, to empower women entrepreneurs and Promoting Economic Growth in Nigeria This is more than a financial deal designed to support and promote the growth of small and medium-sized enterprises in Nigeria; it is a beacon of hope and progress for African businesses, especially those led and owned by women. ”
The agreement marks the beginning of a long-term strategic relationship that perfectly combines AGF’s mission to provide financing to small and medium-sized enterprises and BOI’s mission to promote industrialization and economic transformation in Nigeria.
Distributed by APO Group on behalf of the African Guarantee Fund.
Media Contact:
Diana Aruga
Group Communications and Public Relations Officer
African Guarantee Fund
Info.communications@agf.africa
Theodora Amage
Head of Public Relations Department
Bank of Industry (BOI)
strategic communications@boi.ng
Boney Kamanzi
AFAWA Communications Officer
media@afdb.org
About the African Guarantee Fund (AGF):
The African Guarantee Fund is a dedicated guarantee provider with a mission to promote economic development and poverty reduction in Africa. To achieve this, AGF increases access to finance for small and medium-sized enterprises (SMEs) in key economic sectors through a range of guarantee products and capacity development assistance. Since its inception, AGF has provided more than $5 billion in financing to small and medium-sized enterprises through working with 250 partner financial institutions in 44 African countries.
AGF is supported 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), the French Development Agency (AFD), the Nordic Development Fund (NDF), the Investment Fund for Developing Countries (IFU) ), German Development Bank (KfW), French Private Sector Agency (PROPARCO), West African Development Bank (BOAD), Global Affairs Canada (GAC), USAID West Africa Trade and Investment Hub (WATIH), TechnoServe and NORAD.
African Guarantee Fund rated AA- by Fitch Ratings
About Bank of Industry (BOI):
Nigeria’s oldest and most successful DFI
Bank of Industry Limited (BOI) is Nigeria’s oldest, largest and most successful Development Finance Institution (DFI). It was established in 1959 as the Investment Corporation of Nigeria (ICON) Limited and reorganized in 1964 as the Nigeria Industrial Development Bank (NIDB) under the guidance of the World Bank. The International Finance Corporation, which produced its pioneer CEO, holds 75% of its shares along with a host of domestic and foreign private investors.
In 2001, the bank was transformed into an industrial bank with an authorized share capital of N50 billion following the merger of the mandates of the National Development Bank, the Nigerian Bank for Industrial and Commercial Bank of Nigeria (NBCI) and the National Economic Reconstruction Fund (NERFUND). To enable the bank to better respond to the country’s growing economic situation in line with its mandate, the share capital was increased to N250 billion in 2007 and subsequently to N500 billion.
The mission of the Bank of Industry is to transform Nigeria’s industrial sector by providing financial assistance for the establishment of large, medium and small enterprises and the revival of distressed enterprises; the Bank’s objective is to promote the expansion, diversification and modernization of existing enterprises. The Bank supports projects with potential development impact and the ability to generate significant multiplier effects such as industrialization, job creation and poverty alleviation, all of which will have a significant positive impact on the socio-economic status of Nigerians.
The Bank continues to support growth across sectors, with a particular focus on micro, small and medium-sized enterprises, gender enterprises, infrastructure, youth development, technology, climate and sustainable development.
About Affirmative Financial Action for Women in Africa (AFAWA):
Affirmative Financial Action for Women in Africa (AFAWA) is an initiative of the African Development Bank that aims to close the $49 billion financing gap for women in Africa. AFAWA aims to provide $5 billion in financing to women-owned and led small and medium-sized enterprises by 2026. The program is supported by African Development Bank partners and donors: Women Entrepreneurs Financing Initiative (We-Fi), G7 participating countries Canada, France, Germany and Italy, as well as the Netherlands and Sweden. The African Development Bank approved $2.4 billion in investments through AFAWA, providing financing to more than 18,600 women entrepreneurs in 44 countries through 185 financial institutions.
