21 November 2019GABORONE – Following a Board Meeting held in Gaborone on Thursday 21st November 2019, African Guarantee Fund for Small and Medium-sized Enterprises (AGF) has announced its intent to establish geographical presence in Botswana. This move would see the Republic of Botswana become AGF’s Southern African hub, from where the pan-African guarantee fund would intensify its support to its regional client base. AGF believes Botswana has the experience, expertise and reputation, as well as reach and network, to contribute positively to economic growth. Speaking during the culmination of the board meeting, AGF Group CEO, Felix Bikpo stated, “Our strategy is to decentralize our operations across the continent in order to increase our support to SMEs, who are the real drivers of economic growth.” He added that “AGF’s prospected geographical presence in Botswana would not only bridge the Southern African strategic gap but would have an overall continental multiplier effect.” Southern Africa is home to a number of leading commercial banks and financial institutions, many of which have presence in up to 20 countries. This would provide a tremendous reach to an Africa wide customer base whilst supporting Botswana’s SME sector to grow the national economy. As His Excellency the President of the Republic of Botswana, Dr. Mokgweetsi Eric Keabetwse Masisi, noted in the State of the Nation address delivered this week, positive prospects for the medium-term outlook are strongly underpinned by increased performance in non-mining sectors, and this is precisely where AGF seeks to deliver impact. As a potential host country, Botswana could offer AGF a unique operational platform on the continent by virtue of its possible business and regulatory climate as an established business base. Its listing among the top 10 African performers in the IFC global Doing Business ranking pinpoints its strong and reputed financial services, infrastructure, connectivity and human capital readiness. Botswana’s strong, stable and broad-based financial services sector is, we believe, conducive to growth and development of this nature, with SMEs often dubbed the veritable engine for the economy, and in need of funding and guarantees to propel them into sustainable success. SMEs have limited access to borrowing despite the fact that they contribute up to 40% of National income, creating 70–95% of new jobs (World Bank 2019). Bank lending to SMEs has remained stagnant at around 6% of GDP over the past 5 years. We can and must change this ecosystem and this narrative. This move would be a step in the right direction for African Guarantee Fund which has, over the years, demonstrated proven expertise in providing guarantees sustainably. As an AA- rated organisation, AGF attracts the most rigorous investors and this has restored the organisation’s ability to honour its commitment, which is to effectively serve SMEs by meeting Africa’s financing providers’ needs. ENDS.
21 November 2019GABORONE – Following a Board Meeting held in Gaborone on Thursday 21st November 2019, African Guarantee Fund for Small and Medium-sized Enterprises (AGF) has announced its intent to establish geographical presence in Botswana. This move would see the Republic of Botswana become AGF’s Southern African hub, from where the pan-African guarantee fund would intensify its support to its regional client base. AGF believes Botswana has the experience, expertise and reputation, as well as reach and network, to contribute positively to economic growth. Speaking during the culmination of the board meeting, AGF Group CEO, Felix Bikpo stated, “Our strategy is to decentralize our operations across the continent in order to increase our support to SMEs, who are the real drivers of economic growth.” He added that “AGF’s prospected geographical presence in Botswana would not only bridge the Southern African strategic gap but would have an overall continental multiplier effect.” Southern Africa is home to a number of leading commercial banks and financial institutions, many of which have presence in up to 20 countries. This would provide a tremendous reach to an Africa wide customer base whilst supporting Botswana’s SME sector to grow the national economy. As His Excellency the President of the Republic of Botswana, Dr. Mokgweetsi Eric Keabetwse Masisi, noted in the State of the Nation address delivered this week, positive prospects for the medium-term outlook are strongly underpinned by increased performance in non-mining sectors, and this is precisely where AGF seeks to deliver impact. As a potential host country, Botswana could offer AGF a unique operational platform on the continent by virtue of its possible business and regulatory climate as an established business base. Its listing among the top 10 African performers in the IFC global Doing Business ranking pinpoints its strong and reputed financial services, infrastructure, connectivity and human capital readiness. Botswana’s strong, stable and broad-based financial services sector is, we believe, conducive to growth and development of this nature, with SMEs often dubbed the veritable engine for the economy, and in need of funding and guarantees to propel them into sustainable success. SMEs have limited access to borrowing despite the fact that they contribute up to 40% of National income, creating 70–95% of new jobs (World Bank 2019). Bank lending to SMEs has remained stagnant at around 6% of GDP over the past 5 years. We can and must change this ecosystem and this narrative. This move would be a step in the right direction for African Guarantee Fund which has, over the years, demonstrated proven expertise in providing guarantees sustainably. As an AA- rated organisation, AGF attracts the most rigorous investors and this has restored the organisation’s ability to honour its commitment, which is to effectively serve SMEs by meeting Africa’s financing providers’ needs. ENDS.