Business Desk 
African Guarantee Fund (AGF) entered into a USD 3.1 million five-year partnership with the National Bank of Malawi (NBM) Plc, in a move to scale up its lending activities for various micro, small, and medium enterprises in Malawi.
The signing ceremony was held in Nairobi, Kenya on October 2, 2024, officiated by AGF Group Chief Executive Officer Jules Ngankam and NBM Plc Chief Executive Officer (CEO), Harold Jiya.
Commenting on the partnership, Ngankam said “One of the challenges that many SMEs face in accessing credit, is lack of adequate collateral to qualify their borrowing.
This collaboration is part of AGF’s continued efforts to empower SMEs, drive economic growth, and support sustainable development across our continent.
By utilizing AGF’s Loan Portfolio Guarantee facility, NBM will benefit from risk-sharing arrangements, enabling the bank to extend credit to SMEs that otherwise face significant barriers to accessing finance.”
In his remarks, Jiya said the guarantee will leverage untapped emerging sectors, enabling the Bank to expand its products and service offerings to various sectors, create business synergies, increase the overall number of beneficiaries, and enhance financial inclusion.
A key highlight of the partnership is its leverage of the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative through the AFAWA Guarantee for Growth program.
NBM will therefore provide targeted financial support for women-led and women-owned businesses, thus empowering female entrepreneurs and fostering gender inclusion in Malawi’s business landscape.
In a statement provided, Melissa Basque-Roux, AFAWA Coordinator underlined: “This loan guarantee partnership will improve access to finance for women entrepreneurs, breaking down structural barriers and empowering them to grow their businesses, thereby contributing to sustainable economic development.”
Additionally, through AGF’s Green Guarantee Facility, NBM will increase financing for businesses investing in sustainable, low-carbon technologies.
To complement the guarantee products, AGF is at an advanced stage in structuring a Capacity Development program that will enhance NBM’s technical capacity to foster financial inclusion for its SME segment.
