Latest news with #JulesNgankam
Zawya
07-04-2025
- Business
- Zawya
NCBA and African Guarantee Fund (AGF) Strengthen Small and Medium Enterprise (SME) Financing with KES 3 Billion Renewal, Prioritizing Women-Led Businesses
NCBA has today renewed its partnership with the African Guarantee Fund (AGF) ( to enable the Group provide financial solutions to SMEs, through an enhanced guarantee agreement of KES 3 billion for 10 years. Through the support of AGF's risk-sharing mechanism, NCBA cumulatively disbursed close to KES 17 billion in loans. Out of these credit facilities, AGF has supported 696 SMEs [over 3,500 transactions] amounting to KES 8.0 billion. The outstanding portfolio is worth KES 1.7 billion. The partnership has so far generated 7,200 jobs, of which 2,200 target women, while youth account for 4,100 jobs. Signed by Mr. John Gachora, Group Managing Director of NCBA and Mr. Jules Ngankam, Group Chief Executive Officer of AGF, this enhancement will allow NCBA, on one hand, to further increase its commitment to Kenya's SME segment and on another, to promote the development of projects in renewable energy and sustainable agriculture as well as support women led/owned businesses. During the ceremony, the Group Managing Director at NCBA, Mr John Gachora, said, 'This strategic partnership with AGF is proof of our devotion to SMEs, particularly those spearheading sustainable practices led by women. I believe that by increasing our guaranteed limit, our capacity to offer more flexible and long-term financial solutions that support SME growth will contribute to economic growth.' NCBA reaffirmed its commitment to advancing financial inclusion for women entrepreneurs during a recent International Women's Day dinner in Kapsabet, where the Group hosted its clients. Recognizing the resilience and ambition of women-led businesses, NCBA emphasized its dedication to providing tailored financial solutions, fostering strategic partnerships, and offering business education programs. By equipping women entrepreneurs with the necessary resources, knowledge, and networks, the Group aims to support their growth and long-term success. In addition to the extension of the credit guarantee facility, AGF will provide a Capacity Development grant to NCBA that will be utilized in enhancing the Group's capacity to lend to more SMEs and particularly to women-led SMEs through creation of a pipeline of credit ready WSMEs. 'Our partnership with NCBA represents a significant step in our mission to support SMEs, who constitute almost 98% of all business in Kenya, and create over 30% of the jobs annually. NCBA has been a valued partner for over 12 years, and this renewal marks a new milestone in our shared mission to unlock financing for SMEs. Our collaboration has already achieved remarkable impact, and by increasing this facility, we can reach even more businesses that are shaping the future of Kenya's economy,' said AGF Group CEO, Jules Ngankam. Furthermore, this partnership corresponds with AGF's goals of promoting women's empowerment through the Affirmative Finance Action for Women in Africa (AFAWA) program and endorsing green initiatives to stimulate a more sustainable economy, through its Green Guarantee Facility. NCBA actively promotes sustainability through targeted mentorship and skill-building programs for women and youth, fostering diversity and diligence. The Group directs at least 30% of its procurement to women and youth, advancing inclusion. Through a KES6.5 billion partnership with Proparco, NCBA supports green financing and women's economic empowerment, aligning with its 'Change the Story' agenda. Moreover, the institution invests KES150 million yearly in community development, education and sports. Its environmental efforts, such as tree planting and plastic reduction, further contribute to sustainable livelihoods. NCBA encourages SMEs seeking flexible financial solutions to partner with the Group to unlock credit facilities and other services to grow their businesses. The partnership will benefit these businesses as they will have access to a range of solutions, including finance, currency exchange, cash management systems, online banking, and other services. Distributed by APO Group on behalf of African Guarantee Fund. For media enquiries, please contact: Nelly Wainaina Group Director- Marketing, Communication and Citizenship NCBA Tel: +254 711 056 444 Lynnet Ongeri Communications Assistant Officer African Guarantee Fund Tel: +254 785 341 095 About NCBA Group: NCBA is a full-service financial services group providing a broad range of financial products and services to corporate, institutional, SME and consumer banking customers. NCBA Group operates a network of over 100 branches in five countries, including Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast. Serving over 60 million customers, the NCBA Group is the largest banking group in Africa by customer numbers. NCBA Bank Kenya PLC is among the top leading banks by assets. The Group continues to play a key role in supporting Africa's economic ambitions. The Group is a Market Leader in Corporate Banking, Asset Finance and Digital Banking. About African Guarantee Fund: African Guarantee Fund is a specialized guarantee provider whose mission is to facilitate economic development and poverty reduction in Africa. To achieve this, AGF increases access to finance for Small and Medium-sized Enterprises (SMEs) across key economic sectors through an array of guarantee products and capacity development assistance. Since inception, AGF has unlocked more than USD 5 billion in SME financing, through partnerships with 250 partner financial institutions across 44 African countries. AGF is backed 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), French Development Agency (AFD), Nordic Development Fund (NDF), Investment Fund for Developing Countries (IFU), German Development Bank (KfW), French Agency for Private Sector (PROPARCO), West African Development Bank (BOAD), Global Affairs Canada (GAC), USAID's West Africa Trade&Investment Hub (WATIH), TechnoServe and NORAD. African Guarantee Fund is rated AA- by Fitch Ratings.
Zawya
29-01-2025
- Business
- Zawya
African Guarantee Fund Launches $5 billion Mission 300 Local Currency Guarantee Facility to Accelerate Energy Access across Africa
The African Guarantee Fund (AGF) ( today announced the launch of its Mission 300 Local Currency Guarantee Facility, a groundbreaking initiative to mobilize $5 billion to support energy access projects across Africa. This facility targets financing for small and medium-sized enterprises (SMEs) in the Distributed Renewable Energy (DRE) sector. The facility forms a critical component of an ambitious initiative led by the African Development Bank Group and the World Bank Group, to provide electricity to 300 million Africans by 2030. Africa faces a significant energy access challenge, with approximately 600 million people lacking electricity as of 2023. The continent is estimated to require an annual investment of nearly $25 billion to achieve universal energy access by 2030. 'The Mission 300 Local Currency Guarantee Facility will encourage collaboration with African governments whilst leveraging concessional financing from the African Development Bank, the World Bank Group, and other development partners to scale the involvement of local banks in financing Distributed Renewable Energy solutions,' said Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulations at the African Development Bank. He is also a non-Executive Director with the Africa Guarantee Fund. The fund has been at the forefront of bridging the financing gap facing green SMEs by steering the implementation of the Green Guarantee Facility, supported by the Nordic Development Fund and the Investment Fund for Developing Countries. The Green Guarantee Facility has mobilized financing for green, clean, and renewable energy projects while positioning AGF as a leader in driving sustainable development in Africa. The Green Guarantee Facility mitigates risks within loan portfolios, lowering the exposure of financial institutions to defaults and enhancing their confidence in lending to distributed renewable energy SMEs. It has also accelerated electrification efforts, particularly in underserved rural and peri-urban communities. By addressing systemic barriers such as high collateral requirements, currency mismatches, and the lack of long-term financing, AGF has been able to de-risk SME lending and mobilize significant private sector capital into Africa's energy transition. With its proven track record in catalyzing SME financing while leveraging innovative guarantee solutions and capacity-building programs, the AGF is best positioned to advance Africa's energy transformation. 'AGF's leadership in driving financial innovation for SMEs aligns seamlessly with the goals of Mission 300. By addressing financing gaps and fostering public-private partnerships, AGF plays a crucial role in driving inclusive energy solutions, accelerating the energy transition, and reducing carbon emissions across the continent,' said Jules Ngankam, AGF Group CEO. 'We have successfully implemented the Green Guarantee, which has facilitated progress toward national commitments under the Africa Energy Declaration, the African Union's Vision 2063, and the global Sustainable Development Goals, fostering inclusive growth and climate resilience.' A recent example of AGF's impact in the energy sector is its participation in a credit guarantee syndication for a 40 MW solar plant in Madagascar. This landmark transaction demonstrated the viability of local currency financing for renewable energy projects in the country while enhancing power sector resilience through diversification away from thermal power. The project, which provides improved electricity access to approximately 285,000 people, supports both UN Sustainable Development Goal 7 (affordable and clean energy) and Goal 13 (climate action) by reducing emissions by 34,000 tonnes of CO2 through the displacement of thermal power. Distributed by APO Group on behalf of African Guarantee Fund. Contact: African Guarantee Fund Africa House, Muthangari Road T: +254 732 148 000 P.O. Box 57795-00200 Nairobi, Kenya About Mission 300: Mission 300 is a transformative initiative launched jointly by the African Development Bank and the World Bank Group to accelerate access to clean and sustainable energy for 300 million Africans by 2030. Mission 300 addresses Africa's significant energy access gap, where nearly 600 million people remain without electricity. Through strategic partnerships, innovative financing mechanisms, and capacity-building efforts, Mission 300 is unlocking private-sector investment to drive the development of distributed renewable energy (DRE) solutions. By leveraging de-risking tools and aligning with global sustainable development goals, Mission 300 is committed to fostering inclusive growth, enhancing energy security, and building climate resilience across the African continent. About African Guarantee Fund: African Guarantee Fund, rated AA- by Fitch Ratings, is a specialized guarantee provider whose mission is to facilitate economic development and poverty reduction in Africa. To achieve this, AGF increases access to finance for Small and Medium-sized Enterprises (SMEs) across key economic sectors through an array of guarantee products and capacity development assistance. Since its inception, AGF has unlocked more than $5 billion in SME financing through partnerships with 250 partner financial institutions across 44 African countries. AGF is backed by the following shareholders and sponsors: The Government of Denmark through the Danish International Development Agency, the Government of Spain through the Spanish Agency for International Cooperation, the African Development Bank, French Development Agency, Nordic Development Fund, Investment Fund for Developing Countries (IFU), German Development Bank, French Agency for Private Sector (PROPARCO), West African Development Bank, Global Affairs Canada, USAID's West Africa Trade and Investment Hub, TechnoServe, NORAD and Mastercard Foundation.
