Pietro Calice and Torben Lindqvist    African Development Bank       AfDB-ERMC SME Forum:Bridging the Missing Middle Gap i...
The African Guarantee FundJoint venture of 3 founding shareholders:- The African Development Bank- The Danish Government- ...
The goals and objectives• To promote economic growth and employment creation  in Africa through improving the access of sm...
The modalities of operation I• Company limited by shares• Return on capital• Operation at market terms: Design and pricing...
The modalities of operation II• Incorporation and licensing in Mauritius• Main operational office in Nairobi• Further bran...
The modalities of operation III• Initial guarantee capital: USD 50 million• Medium-term growth to USD 300 million• Longer-...
The modalities of operation IV• Clients: Commercial banks, registered MFIs, leasing  companies, other non-bank FIs• Due di...
Milestones achieved in 2010• Design and structuring finalised• Final negotiation of constitutive documents• Initial contri...
Timeline 2011 - 2012•   Focal Point to Nairobi                        February•   Incorporation and licensing of AGF      ...
Thank youContacts:Pietro Calice, Principal Investment Officerp.calice@afdb.org              PRESENTATION TITLE, Date, Venu...
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AfDB-EMRC SME Forum Session 5 Pietro Calice Torben Linqdvist

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AfDB-EMRC SME Forum Session 5 Pietro Calice Torben Linqdvist

  1. 1. Pietro Calice and Torben Lindqvist African Development Bank AfDB-ERMC SME Forum:Bridging the Missing Middle Gap in Africa Lisbon, 6 June 2011
  2. 2. The African Guarantee FundJoint venture of 3 founding shareholders:- The African Development Bank- The Danish Government- The Spanish Government Date, Venue PRESENTATION TITLE, Conference NameFollows up on Africa Commission recommendation (May 2009): Growth and employmentLead role in preparation: The African Development Bank
  3. 3. The goals and objectives• To promote economic growth and employment creation in Africa through improving the access of small and medium-sized enterprises to financing from the financial sector• To provide financial guarantees to African financial institutions PRESENTATION TITLE, Date, Venue that wish to increase and improve their SME Conference Name lending: o Partial loan portfolio guarantees o Institutional guarantees allowing FIs to source capital for SME lending in the local capital markets o At a later stage possibly other guarantee and financial products• To co-finance the costs of FIs’ capacity development efforts related to SME lending
  4. 4. The modalities of operation I• Company limited by shares• Return on capital• Operation at market terms: Design and pricing of products• Lean organisation headed by CEO, overseen by Board PRESENTATION TITLE, Date, Venue• InvestmentConference Name Committee composed of independent experts• Capacity Development Facility: Trust based on grants• Operated as part of AGF• Outsourcing of CD provision to existing providers
  5. 5. The modalities of operation II• Incorporation and licensing in Mauritius• Main operational office in Nairobi• Further branches in medium term – first priority francophone West Africa PRESENTATION TITLE, Date, Venue• 9 start-upcountries: Name Conference Senegal, Mali, Ghana, Cameroun, Kenya, Tanzania, Uganda, Mozambique, Zambia – with possibility to respond to demand from elsewhere as well• Gradual coverage of all of Africa
  6. 6. The modalities of operation III• Initial guarantee capital: USD 50 million• Medium-term growth to USD 300 million• Longer-term perspective: USD 500 million PRESENTATION TITLE, Date, Venue Conference Name• Short and medium term: Donors and DFIs• Longer term: Gradual involvement of private-sector investors• Vehicle for donors’ guarantee programmes: Harmonisation, rationalisation, and professionalisation
  7. 7. The modalities of operation IV• Clients: Commercial banks, registered MFIs, leasing companies, other non-bank FIs• Due diligence of clients• Co-financing of capacity development: Needs assessment PRESENTATION TITLE, Date, Venue• Reporting requirements tailored to client’s own reporting Conference Name systems• SMEs defined by each individual client FI• No targeting relating to sectors, locations, owners, etc.• But discussion with clients on how best to serve women, youth
  8. 8. Milestones achieved in 2010• Design and structuring finalised• Final negotiation of constitutive documents• Initial contributions to AGF equity approved – USD 50 million PRESENTATION TITLE, Date, Venue• Initial contribution to NameTrust - USD 2.5 million Conference CD• Start-up and initial operational subsidy• Feasibility and Pipeline studies in start-up countries: Sufficient number of likely first-round deals• Interest among potential new shareholders
  9. 9. Timeline 2011 - 2012• Focal Point to Nairobi February• Incorporation and licensing of AGF March• Board appointed May• Registration of CD Trust TITLE, Date, Venue PRESENTATION June Conference Name• Issuance of first shares June• Selection of CEO June• Start of operational phase October• First guarantee deals Start 2012
  10. 10. Thank youContacts:Pietro Calice, Principal Investment Officerp.calice@afdb.org PRESENTATION TITLE, Date, VenueTorben Lindqvist, AGF Name Point Conference Focalt.lindqvist@afdb.orgwww.africanguaranteefund.com (forthcoming)

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