Access to bank credit: after Congo’s accession, Fagace launches its activities in the country.
Fagace organized an open day, in Brazzaville, to publicize its activities. The day took the form of a conference-debate, on Wednesday July 18, 2012, at the auditorium of the Ministry of Foreign Affairs and Cooperation, and was hosted by Henri-Marie Dondra, Managing Director of Fagace, and Abdoulaye Bio Tchane, former Director of the F.m.i for Africa and former President of the Boad (West African Development Bank), in the presence of Jean Raymond Dirat, Cabinet Director of the Minister of Finance, Budget and Public Portfolio, who presided over the opening ceremony.
Nearly two hundred participants (economic operators, public administration executives in charge of economic and financial issues, bank executives, etc.) attended Fagace’s open day. The theme of the conference-debate was: “Guarantees, an essential instrument for financing development projects in Africa: Fagace’s experience”.
Henri-Marie Dondra and Abdoulaye Bio Tchane spoke about Fagace’s activities, in particular its intervention mechanisms in Africa.
Created on February 10, 1977, in Kigali, Rwanda, to support Africa’s economic development, Fagace offers guarantee advantages to enable SMEs (small and medium-sized enterprises) to access bank loans. The absence of a guarantee prevents banks from daring to finance and support businesses. The purpose of the fund is to contribute to the economic and social development of member states, individually or collectively, by participating in the financing of their development projects or by facilitating their realization through accompanying measures such as subsidizing or extending credit terms.
“This day is in line with Congo’s economic development policy. Fagace has extensive experience in providing guarantees in member states. It is a genuine tool for integration, with capital raised to 200 billion CFA francs in 2011. The fund has mobilized 1,000 billion CFA francs for member states. Congo joined the fund a year ago, becoming Fagace’s 13th member state. As a result, the fund now has fourteen member states, including four from the CEMAC (Central African Economic and Monetary Community)”, explained Henri-Marie Dondra.
In his turn, Jean-Raymond Dirat explained Congo’s commitment to the fund. “The Minister is very keen to modernize our economy. The Congo has a weakness when it comes to financing our businesses, especially small businesses, which have difficulty accessing bank loans. Thanks to this instrument, we now have a door that opens a little wider to our companies, so that they have the facilities to improve the level of their activities. This is an opportunity for Congolese economic operators to take full advantage of this tool, which is now being popularized in the Congo”, he declared.
The fund is open to African and non-African countries, as well as to international financial institutions. According to its Managing Director, its capital could grow from 200 to 500 billion CFA francs over the next three years, depending on prospects. Fagace is active in fields such as industry, agriculture, livestock breeding, agro-industry, telecommunications, energy, transport, trade, tourism and hotels, and small and medium-sized enterprises producing goods and services. It is an institution set up by African states to provide the guarantee that companies lack to access credit, in order to finance their development projects.
Member countries: Congo Brazzaville
