On February 27 and 28, 2018, the headquarters of the Fonds de Solidarité Africain hosted the International Forum of National Guarantee Funds, an event co-organized by the Fonds de Solidarité Africain (FSA) and the Fonds Africain de Garantie et de Coopération Economique (FAGACE).
Organized under the high authority of Niger’s Minister of Finance, the forum brought together the Managing Directors of national guarantee funds and independent experts from various African countries and France around the theme: “The Guarantee in SME/SMI Financing”.
In his opening speech, the Minister Delegate for the Budget congratulated the FSA and FAGACE for organizing the Forum, the theme of which focused on the financing of SMEs/SMIs, which play a vital role in the economic development of countries like Niger.
With the adoption since January 2018 of the Basel II and III prudential arrangements, SME/SMI financing is likely to be more difficult without guarantors. He went on to invite guarantee funds to create synergies between the FSA, FAGACE and the various National Guarantee Funds, in order to have a greater catalytic impact on the financing of national economies.
In his speech, the Managing Director of FAGACE pointed out that “according to World Bank studies, guarantee constraints are often cited as the main obstacle to obtaining financing for SMEs/SMIs.
The absence of reliable guarantees is a major reason why banks are reluctant to take an interest in SME/SMI projects, hence the importance of guarantee structures, which need to be better organized to deal with this situation, which concerns them all. In organizing this forum, the ASF and FAGACE, two African multilateral guarantee institutions, wanted to create a framework for exchange and consultation on this strategic issue for Africa’s development”.
In his introductory speech, Consultant Vilévo DEVO gave an overview of the current state of guarantee funds. For this former BCEAO executive, guarantee structures need to be more representative in the economic and financial arena, particularly in the WAEMU, more supported by governments to increase their financial capacities, more indispensable in granting bank loans, and more active in a vast field brimming with immense needs.
The various presentations made by guarantee experts were listened to attentively by the participants, who not only asked a number of clarifying questions on specific technical aspects, but also made their own contributions through rich and diversified presentations aimed at improving the practice of the “Guarantor” profession.
At the end of the discussions, FAGACE and FSA pledged to maintain and develop their partnership with a view to strengthening the position of Guarantee Funds in the legal, economic and financial environment in Africa. On the other hand, they will attach particular importance to developing their partnership with national Guarantee Funds and lending banks to achieve their main objective, which is to promote SME/SMI financing in their respective member states.
