The Managing Director of the Fonds africain de garantie et de coopération économique (FAGACE), Henri-Marie J. Dondra, expressed the fund’s commitment on July 18 in Brazzaville to increasing its share capital from 200 to 500 billion CFA francs over the coming years.
The fund also plans to open up to two other member countries of the Central African Economic and Monetary Community (CEMAC), namely Gabon and Equatorial Guinea, as well as to emerging countries. “We’re going to make the fund a truly pan-African financial institution”, said FAGACE’s Managing Director.
FAGACE remains a pan-African structure aimed at promoting the socio-economic development of member states. As of June 30, 2012, FAGACE had guaranteed 267 projects in 11 countries, with gross commitments of 282.4 billion CFA francs. Almost 65% of FAGACE guarantees are in the private sector, 25% in the public sector and 9% in the mixed sector.
Overall, the fund has already mobilized more than 1,000 billion CFA francs. Guarantees help to protect against payment default and to raise funds on the financial markets. FAGACE’s operations cover a wide range of sectors, including trade, agriculture, agri-food, fisheries, livestock, transport and telecommunications.
Mr. Dondra spoke about FAGACE’s prospects during an open day organized in collaboration with the Congolese Ministry of Finance and Budget.
In a presentation, FAGACE Chairman Abdoulaye Bio Tchane stressed the importance of guarantees as an instrument facilitating access to financing for development projects. Guarantees, he continued, enable borrowers to obtain additional private financing on the financial markets, and provide partial or total risk coverage, depending on the terms of the contract.
The former Director of the International Monetary Fund (IMF) for Africa and of the West African Development Bank (BAOD) also pointed out that guarantees also help to restore investor confidence, reinforce borrower credibility, stimulate business productivity and competitiveness, and contribute to job creation.
Member countries : Benin Burkina-Faso Cameroon Central Africa Congo Brazzaville Côte d’Ivoire Guinea-Bissau Mali Mauritania Niger Rwanda Senegal Chad Togo
