Guinea: AFG Bank Secures €60M for SME Financing

AFG Bank Guinea and Proparco, the branch of the French Development Agency (AFD) dedicated to private sector financing, recently signed a strategic agreement. This agreement involves the mobilization of 60 million euros, or approximately 38.21 billion CFA francs. It is intended to increase the financing capacity of Guinean small and medium-sized enterprises (SMEs) and to support their international trade operations. The program established with Proparco comprises two distinct financial components. The first involves 35 million euros in loans specifically dedicated to SMEs, or approximately 22.29 billion CFA francs. This funding is intended to enable AFG Bank Guinea to expand its capacity to assist companies needing resources to finance their investments, growth, or working capital requirements. The second component amounts to 25 million euros--approximately 15.92 billion CFA francs--in the form of trade finance guarantees. These guarantees are designed to facilitate the international trade operations of Guinean companies by further securing their transactions. For AFG Bank Guinea, the goal is to simultaneously strengthen domestic financing for SMEs and their ability to access international markets. Keep up with the latest headlines on WhatsApp | LinkedIn Through this initiative, AFG Bank Guinea aims to scale up its support for the local entrepreneurial ecosystem. The bank plans to double its SME portfolio, increasing it from 60 to 120 million euros by 2027. It also aims to triple the number of companies benefiting from its financing and services, thereby consolidating its position in this key segment. The agreement also provides for the relaunch of the Maison de la PME, an initiative designed to strengthen non-financial support for businesses. AFG Bank Guinea plans, in particular, to rely on expanded teams and a broader range of services to better meet the specific needs of SMEs. This expansion is expected to result in a significant increase in the number of businesses supported, with nearly 3,800 direct and indirect jobs maintained or created. The agreement between AFG Bank Guinea and Proparco marks a strategic commitment to the development of Guinea's private sector, particularly its small and medium-sized enterprises. By mobilizing 60 million euros, AFG Bank Guinea is not merely injecting capital but is implementing a comprehensive strategy to step up its support for local businesses. This dual-pronged approach--combining 35 million euros in direct loans for investments and working capital with 25 million euros in trade finance guarantees--addresses the challenges of domestic growth and access to international markets faced by Guinean SMEs. This initiative is expected to double AFG Bank Guinea's SME portfolio to 120 million euros by 2027 and triple the number of supported businesses, demonstrating a long-term vision for economic impact. Get the latest in African news delivered straight to your inbox By submitting above, you agree to our privacy policy . We need to confirm your email address. To complete the process, please follow the instructions in the email we just sent you. There was a problem processing your submission. Please try again later. Furthermore, the relaunch of "La Maison de la PME" underscores a holistic approach that includes crucial non-financial support, recognizing that access to expertise and advisory services is just as vital as capital for sustainable growth. This integrated strategy is expected to maintain or create nearly 3,800 jobs, highlighting the socioeconomic benefits beyond financial indicators. For AFG Bank Guinea, this partnership reinforces its role as a key player in the economic transformation of African economies, leveraging its financial capabilities and network to energize the entrepreneurial ecosystem in Guinea. Read the original article on Daba Finance . AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals ,