On Tuesday January 30, the Fonds Africain de Garantie et de Coopération Economique (FAGACE) held a working session at its Cotonou headquarters with the General Managers of a number of banks and financial structures.
Ms Minafou Fanta Coulibaly-Koné, Managing Director of FAGACE, gave a brief presentation of the institution and outlined the Fund’s new intervention strategy.
As the first financial institution to specialize in bank credit guarantees, FAGACE has contributed over 40 years to the financing of development projects in its fourteen (14) member states, injecting more than 1,500 billion FCFA into various strategic sectors of their economies.
Building on its experience, FAGACE is now embarking on a new dynamic, with the main aim of revitalizing its partnership relations with banks and credit institutions, and making a greater contribution to financing projects initiated by public and private economic operators in its member states.
FAGACE’s Managing Director outlined a number of key strategic points for the Fund at this meeting with the banks.
“Lending banks need institutional guarantors such as FAGACE to mitigate the risk of default.
FAGACE to mitigate the risk of default by project promoters.
project promoters.
“Similarly, guarantors need banks to fulfill their mission
their mission of facilitating the mobilization of financial resources.
resources.”
It is therefore through an alignment of interests that banks and guarantors will be able to mobilize financial resources for the benefit of economic operators. Hence the organization of this meeting, which will ultimately facilitate joint interventions between FAGACE and lending banks in Benin.
During the discussions, FAGACE’s new intervention strategy and its implications for the banking sector were presented.
This new strategy, outlined by the Fund’s Managing Director, is now based on :
- the refocusing of the institution’s activities exclusively on its core guarantee business;
- focus on very small businesses and SMEs;
- the introduction of a new organization focused on risk analysis and management;
- the adoption of a prudential framework in line with international standards;
- strengthening the institution’s equity capital ;
- un mode de distribution exclusif des produits à travers les banques et les institutions de micro finance;
- the Fund’s commitment to settle all guarantee calls under the required conditions;
- etc.
By organizing this meeting, the Managing Director of FAGACE was reminding us of the strategic importance of open collaboration between banks and guarantee funds to support SMEs, which make up 80% of the economic fabric of our countries.
FOR MORE INFORMATION: courriel.fagace@le-fagace.org
