Strengthening SME Financing: NCBA and African Guarantee Fund Partnership
In a significant move to bolster support for small and medium-sized enterprises (SMEs) in Kenya, NCBA has renewed its partnership with the African Guarantee Fund (AGF). This renewed agreement introduces a financial commitment of KES 3 billion ($25 million) to enhance SME financing over the next decade.
Unlocking Financial Opportunities for SMEs
With the backing of AGF’s risk-sharing mechanism, NCBA has previously disbursed nearly KES 17 billion in loans aimed at empowering SMEs. Of this, approximately KES 8 billion has specifically supported 696 SMEs through over 3,500 transactions. The current outstanding portfolio stands at KES 1.7 billion, underscoring the impact of this partnership, which has generated around 7,200 jobs, with a notable focus on women and youth employment.
Commitment to Sustainable Development
NCBA’s Group Managing Director, Mr. John Gachora, emphasized the strategic importance of this partnership during the signing ceremony with AGF’s Group CEO, Mr. Jules Ngankam. Gachora stated, “This strategic partnership with AGF is proof of our devotion to SMEs, particularly those spearheading sustainable practices led by women.” This renewed agreement aims to expand financial solutions tailored not only for SMEs but also specifically for initiatives in renewable energy and sustainable agriculture.
Empowering Women Entrepreneurs
On the heels of International Women’s Day, NCBA reaffirmed its commitment to advancing financial inclusion for women entrepreneurs. During a dedicated event in Kapsabet, the Group underscored its mission to support women-led businesses by providing customized financial products, strategic partnerships, and comprehensive business education programs.
Capacity Development for Greater Impact
As part of this enhanced partnership, AGF will also provide a Capacity Development grant to NCBA, aimed specifically at improving the Group’s ability to lend to more SMEs, especially those led by women. This initiative is vital for creating a robust pipeline of financially prepared women-owned SMEs.
Mr. Jules Ngankam remarked that the collaboration with NCBA represents a pivotal advancement in AGF’s mission to facilitate access to finance for SMEs, which comprise approximately 98% of all businesses in Kenya and generate over 30% of employment annually. “This renewal marks a new milestone in our shared mission to unlock financing for SMEs,” Ngankam noted.
Aligning Goals with Sustainable Practices
The partnership aligns with AGF’s objectives, particularly in enhancing women’s empowerment through the Affirmative Finance Action for Women in Africa (AFAWA) program and promoting green initiatives via its Green Guarantee Facility. This synergy is essential for driving a more sustainable economy while creating long-term economic opportunities.
NCBA’s Commitment to Sustainable Practices
NCBA’s commitment to sustainability goes beyond financing. Through targeted mentorship and skill-building programs for women and youth, the Group emphasizes diversity and inclusion. It actively directs at least 30% of its procurement to women and youth, demonstrating its commitment to inclusive growth.
With an annual investment of KES 150 million in community development, education, and sports, NCBA showcases its dedication to building sustainable livelihoods. The Group also engages in environmental initiatives such as tree planting and reducing plastic waste.
Flexible Financial Solutions for SMEs
NCBA encourages SMEs seeking flexible financial solutions to collaborate with the Group. This partnership provides access to various services, including finance, currency exchange, cash management systems, online banking, and more, designed to facilitate business growth.
For more information on enhancing SME financing, visit African Guarantee Fund and discover how this collaboration can propel your business forward.
Distributed by APO Group on behalf of African Guarantee Fund.
For media enquiries, please contact:
Nelly Wainaina
Group Director- Marketing, Communication and Citizenship
NCBA
Nelly.Wainaina@ncbagroup.com
Tel: +254 711 056 444
Lynnet Ongeri
Communications Assistant Officer
African Guarantee Fund
lynnet.ongeri@agf.africa
Tel: +254 785 341 095
About NCBA Group:
NCBA is a full-service financial services group providing a broad range of financial products and services to corporate, institutional, SME and consumer banking customers. NCBA Group operates over 100 branches across five countries, including Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast. The Group serves over 60 million customers and continues to play a key role in supporting Africa’s economic aspirations, noteworthy as a market leader in corporate banking, asset finance, and digital banking.
About African Guarantee Fund:
The African Guarantee Fund is committed to facilitating economic development and poverty reduction in Africa. It enhances access to finance for SMEs across critical economic sectors by offering a variety of guarantee products and capacity development assistance. AGF has successfully unlocked over USD 5 billion in SME financing through partnerships with 250 financial institutions across 44 African nations.
AGF is supported by a diverse coalition of stakeholders, including the Governments of Denmark and Spain, the African Development Bank, and numerous development agencies, ensuring a robust foundation for SME financing across the continent.
African Guarantee Fund is rated AA- by Fitch Ratings.
