Sidian Bank has signed a partnership deal with African Guarantee Fund to boost the growth of local Small and Medium sized Enterprises (SMEs).
In the deal, the bank will receive Sh515,900,000 from African Guarantee Fund (AGF) for a period of four years starting 2021. The Loan Portfolio Guarantee will be used to support SMEs through loans.
The lender noted that many SMEs face lack of adequate collaterals to support their borrowing. The AGF Loan Portfolio Guarantee will enable Sidian Bank to scale up its lending activities to SMEs by enabling easy access to finance.
Speaking at the signing of the deal in Nairobi on Wednesday, Sidian Bank CEO Chege Thumbi said: “We are excited to partner with AGF in this Loan Portfolio Guarantee Facility. AGF is a valuable partner; that is passionate about supporting SME growth and success in Kenya and Africa”
He added: “This last year has been difficult for SMEs, we expect that this guarantee facility and our other financial solutions will provide much needed support to business owners and enable them to emerge stronger.”
African Guarantee Fund seeks to support SMEs to play their role of engine drivers of growth. By closing the greatest obstacle, which is the financing gap, AGF enables SMEs to increase sustainable growth and to be a source of employment, skills and wealth creation. In turn, this serves to reduce poverty throughout the continent.
African Guarantee Fund Group CEO Jules Ngankam said “Sidian Bank provides efficient and convenient solutions to Kenyan entrepreneurs, our loan portfolio guarantee will enable them to provide more financial solutions to their SME clientele.”
“The guarantee facility will have an impact on thousands who are directly and indirectly dependent on the income generated from the SMEs,” Mr Ngankam added.
