The African Export-Import Bank (Afreximbank) today in Cairo entered into a memorandum of understanding (MOU) with the African Guarantee Fund for Small and Medium-sized Enterprises Ltd. (AGF) for collaboration between the two institutions in promoting trade and economic development in Africa.
Dr. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, and Felix Bikpo, Chief Executive Officer of AGF, signed the MoU on behalf of their two institutions during a ceremony at the Afreximbank Headquarters.
By the terms of the MoU, Afreximbank and AGF will collaborate in their efforts for the promotion of trade and economic development through the use of guarantee and other risk mitigation instruments, and through joint research, capacity building and exchange of staff, among others.
The two institutions also agreed to cooperate in matters of common interest, in particular in the areas of identification, preparation and appraisal of projects; in co-guarantee of projects; and in other activities, such as joint road shows, exchange of staff, joint advisory mandates, advocacy, joint attraction and/or facilitation of technical assistance to support trade and investments in Africa.
AGF works to assist financial institutions increase their financing to African small and medium sized enterprises through the provision of partial financial guarantees and capacity development assistance. It was launched in 2012 by the African Development Bank, which together with the governments of Denmark and Spain, are the founding shareholders.