SMEs to get cheap loans for projects

In the last six years, AGF has assisted 7,600 SMEs obtain Sh72.9 billion loans from African banks. file photo | nmg 

By JAMES KARIUKI

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Summary

• In the last six years, AGF has assisted 7,600 SMEs obtain Sh72.9 billion loans from African banks

Small and Medium Enterprises (SMEs) executing infrastructural projects will enjoy cheaper loans after African Guarantee Fund (AGF) inked a Sh7.4 billion facility pact with GuarantCo.

AGF’s chief executive Felix Bikpo said this would enable SMEs bidding for big projects to borrow from the organisation.

GuarantCo’s chief executive Lasitha Perera expressed their commitment to support SMEs saying access to local currency denominated loans will increase participation of SMEs in big ticket projects.

In a statement, the two observed that financing SMEs would help generate more jobs. The move would also boost the firms’ capacities and increase availability of a platform for technology transfer, they said.

In the last six years, AGF has assisted 7,600 SMEs obtain Sh72.9 billion loans from African banks after dishing out financial guarantees amounting to Sh69 billion in 39 African countries.