In Guinea, a guarantee fund to give SMEs breathing space

2023-09-28 22:00:38

Guinea has just acquired a new financial institution: the Business Loan Guarantee Fund (FGPE). This new, unique institution’s mission is to facilitate the granting of bank loans to small and medium-sized businesses through a risk-sharing mechanism. The FGPE benefits from technical and financial support from the World Bank.

From our correspondent in Conakry,

It is an institution whose mission is to boost the supply of credit by reducing constraints on the financing of small and medium-sized businesses. Abdoulaye Diallo, the general director of this new institution set up by the Guinean authorities, gives explanations.

« The business loan guarantee fund is a specialized financial institution which aims to facilitate the credit burden for SMEs which, as you know, even in normal times, more seriously in times of crisis, suffer from credit rationing ».

Donors and not the least important ones are providing their support to this new institution. “For the moment, it is the World Bank and we have good prospects with other multilateral and bilateral donors who show intentions to diversify the fund’s possibilities, particularly in sectors such as agriculture and women’s entrepreneurship. and the start-up sector», continues Abdoulaye Diallo.

The State committed to mobilizing funds

In addition to the World Bank, the Guinean State is also committed to mobilizing funds. This is why SMEs will be the first beneficiaries of this guarantee fund, according to the Minister of Industry and Trade, Louopou Lamah.

« The main mission will be to boost the activities of the private sector in general and especially those of small and medium-sized businesses in particular. This is an important step which lays the foundations for a relationship of trust between financial players and those in the private sector, something essential to strengthening the business climate, the repercussions of which will have a positive impact on the daily lives of populations. ».

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The establishment of this financial institution reassures Guinean economic operators. “We welcomed with satisfaction, with great hope, the establishment of this guarantee fund, especially since we testify to the will and determination of Colonel Mamadi Doumbouya and his government for having initiated and established the establishment of the operation of this guarantee fund», Underlines El-hadj Mamadou Balde, president of the Chamber of Commerce, Industry and Crafts of Guinea.

The Guinean Prime Minister, Bernard Goumou, sponsor of the ceremony, invited the new management of this financial institution to popularize their activities throughout the country.

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