African Guarantee Fund

Established in 2011, the African Guarantee Fund (AGF) is a pan-African non-bank financial institution sponsored by the African Development Bank (AfDB), the Danish International Development Agency (DANIDA), and the Spanish Agency for International Development Cooperation (AECID). Its mission is to promote economic development, increase employment, and reduce poverty in Africa by providing financial guarantees and technical assistance to financial institutions that lend to SMEs. By absorbing a portion of the lender's risk, AGF encourages banks to increase their lending portfolios for the SME sector, which is a critical driver of economic growth on the continent.