The International Bank for Industry and Commerce (BIIC) and the African Guarantee Fund (AGF) are now partners. The two institutions signed this Thursday, June 08, 2023 in Lomé, a partnership agreement relating to a line of Portfolio Guarantee.
This agreement aims to promote business financing but with a broad focus on SMEs, female entrepreneurship as well as SMEs eligible for GREEN financing.
Indeed, the AGF through this partnership, makes available to the BIIC, a portfolio of 5 billion FCFA over a period of 60 months to guarantee the loans granted to SMEs in Benin with a certain priority for SMEs held or supported by women
According to Mr. Bendjin KPEGLO, Managing Director of AGF, West Africa, this is to allow BIIC to finance Beninese SMEs for the development of their activities, to play a major role in the development of the Beninese economy. , to further increase its competitiveness on the market by optimizing the timeframes for obtaining a financial guarantee, to increase its balance sheet size.
He also affirmed that this agreement marks the beginning of the relationship between AGF and BIIC and the objective is to grow this guarantee portfolio to a much higher amount.
The BIIC according to Mr. Arsène M.DANSOU, its general manager, is the first bank in Benin because it trusts the private sector, SMEs.
He adds that “through this partnership with the AGF, the BIIC wants to further cement the foundation that SMEs represent for our economies”.
African Guarantee Fund is a non-banking financial institution whose objective is to promote economic development, increase job creation and reduce poverty in Africa by providing financial institutions with guarantee solutions and support for the strengthening of capacities, specifically aimed at supporting SMEs in Africa.
It was created by the Government of Denmark through the Danish International Development Agency (DANIDA), the Government of Spain through the Spanish Agency for Cooperation and International Development (AECID) and the African Development Bank (ADB).