Zenith Bank (Ghana) Limited, a prominent financial services provider, has teamed up with African Guarantee Fund (AGF) to establish a strategic risk-sharing partnership. This collaboration aims to enhance funding accessibility for Micro, Small, and Medium Enterprises (MSMEs) in Ghana, with a special emphasis on green businesses and women-owned/led enterprises.
Acknowledging the challenges faced by many MSMEs in obtaining loans due to limited collateral or credit history, this partnership offers tailored financial products and services. These initiatives are crafted to cater to the distinct requirements of such businesses, thereby promoting their growth and prosperity.
AGF will extend partial guarantees on loans issued by Zenith Bank Ghana, effectively mitigating the Bank’s risk exposure. This mechanism facilitates easier qualification for funding by MSMEs, granting access to opportunities that were previously inaccessible to them.
Managing Director and Chief Executive Officer of Zenith Bank Ghana, Henry Onwuzurigbo, speaking at the signing ceremony which came off at the Zenith Bank Ghana Head Office in Accra, said the Bank was acutely aware of the importance of small and medium size businesses as well as the challenges they face in accessing finance.
He emphasized that the partnership aligns with the Bank’s core belief that banking reaches its pinnacle when it directly influences businesses and, in turn, the broader economy.
“MSMEs are the lifeblood of the Ghanaian economy, and we are committed to providing them with the financial support they need to thrive,” Mr. Onwuzurigbo stated. “This partnership with AGF will enable us to reach more businesses, particularly those owned by women and those committed to sustainability, and help them achieve their full potential.”
African Guarantee Fund, in its first agreement with Zenith Bank Ghana, is pioneering a landmark partnership aimed at bolstering SME lending activities in the country. This collaboration marks a significant stride in fostering economic growth and empowerment within Ghana’s vibrant SME landscape. Mr. Bendjin Kpeglo, AGF West Africa Managing Director said, “This partnership is a significant stride in our mission to drive sustainable economic development through our guarantee facilities to increase Zenith Bank Ghana’s financing of MSMEs in Ghana.”