Sidian Bank has secured Sh500 million from African Guarantee Fund (AGF) for onward lending to local Small and Medium Enterprises (SMEs).

The bank on Wednesday said the agreement is part of the effort to bridge the financing gap facing SMEs in the country. The partnership would support the growth of small businesses through provision of guarantees for the bank’s customer loan facilities.

“African SMEs face a greater challenge of accessibility over affordability for the loans they seek for their businesses. We hope this partnership will address that,” AGF chief executive Jules Ngankam said.

Sidian Bank chief executive Mr Chege Thumbi said the bank was proud to be partnering with an institution that has a similar interest in SMEs.

AGF’s agreement with the bank is in line with their mandate to facilitate access to credit for SMEs in African countries. The Group plans to increase the guarantee to Sh5 billion over the course of three years.

Mr Ngankam said AGF was keen to see African businesses grow beyond financial success to achieve greater social impact. 

Sourced from Business Daily