This November 08, 2019, under the presidency of Mr. Calixte NGANONGO, Minister of Finance and Budget of Congo, was held in Brazzaville in the offices of the BEAC, a meeting of exchanges between Congolese banks and credit institutions and the African Guarantee Fund and Economic Cooperation (FAGACE). In addition to the Minister of Finance and Budget, the meeting was attended by the Minister of SMEs, Crafts and the Informal Sector, Madame Yvonne-Adélaïde MOUGANY. The proceedings were chaired by Mr Hilaire MAVOUNGOU, Budget Advisor to the Minister of Finance and Budget and Congo’s Administrator to the Fund, and moderated by Mr Basile TCHAKOUNTE, Managing Director pi of the Fund, and his delegation.
FAGACE is an international financial institution specializing in the promotion of public and private investment through its various activities, notably guarantees. The Fund has fourteen (14) member countries, including the Republic of Congo, which joined the institution in 2011. Since its creation in 1977, the Fund has mobilized nearly 2,000 billion FCFA for the benefit of member economies in strategic sectors such as agriculture, agro-industry, industry, telecommunications and energy.
Today, it is clear that Africa is in a state of perpetual change. To keep up with the dynamism of its economies, and the best practices of international financial institutions FAGACE has been carrying out far-reaching reforms since 2017.
In particular, this strategic reorientation has involved paying greater attention to the issue of SME financing in these economies. After all, SMEs make up more than 80% of the economic fabric of member states. They are recognized as drivers of economic growth, innovation, regional development and job creation. However, they encounter many difficulties in accessing the bank financing they need to expand their activities.
The findings of several studies show that one of the major obstacles to bank and MFI financing for VSEs and SMEs is the need for collateral.
FAGACE is one of the forerunners in the Guarantee business in Africa, and as such intends to contribute its experience and expertise to the development of the Congolese economy.
The aim of today’s meeting with Congolese banks and credit institutions is to strengthen the Fund’s operations in the Congo, in line with the government’s strategy of diversifying resources.
The meeting also provided an opportunity to discuss appropriate risk-sharing mechanisms between stakeholders, with a view to developing the synergies needed in the short term to boost SME financing and contribute to the country’s sustainable, inclusive growth.
