THE FAGACE 2.0 SOLUTION
BY MINAFOU COULIBALY-KONE
TO FINANCE SMES
With over 15 years’ professional experience in the banking, financial and economic sectors, where she has distinguished herself in various positions of responsibility, the Ivorian, a recognized financial expert, is successfully reorienting the guarantee fund of which she is now Managing Director, towards more efficient financing
The African Guarantee and Economic Cooperation Fund (FAGACE), a pioneer in the field of guarantees in Africa, aims to contribute to the economic and social development of its fourteen (14) member states. By guaranteeing short- and medium-term productive loans, the Fund has succeeded in mobilizing over 1,500 billion CFA francs of investment for its member states since its creation. But there are still many challenges to be met, and new reforms are needed.
This is the sense of the strategic reorientation carried out by its new Managing Director, to be more in line with developments in the financial market.
Thus, since 2017, with the “FAGACE 2.0” Plan, the Fund has embarked on a new era of reforms with a view to making it more efficient.
With this in mind, and to ensure greater legibility of its new offering, the Fund has refocused around guarantees for SMEs, with product distribution exclusively through banks and SFDs. As these institutions are the only channels through which the Fund can be contacted, the new partnerships with them are based on a modus operandi agreed between the parties and a loyal commitment between the various players. This translates into an alignment of interests for better risk sharing, swift processing of files, and an efficient default management procedure with prompt settlements.
By committing itself to financing start-ups, the green and digital economy, the agricultural value chain and education, the Fund intends to play a more active role in the continent’s development.
Lastly, for the Managing Director, it was necessary to put in place a prudential framework in line with international standards, notably by reducing leverage and ensuring transparency of financial information to third parties, in order to improve the institution’s operational efficiency.
All these measures are in line with Mrs. COULIBALY-KONE’s vision of developing the synergies needed to boost the financing of African SMEs through new cooperation with all stakeholders, thereby making FAGACE an essential link in the financial ecosystem.
Thanks to the FAGACE 2.0 solution, the African Guarantee and Economic Cooperation Fund is being transformed and strengthened to meet the needs of member countries’ economies more effectively, and play its full role as a catalyst for development in Africa.
