The African Guarantee Fund (AGF) and Vista Group Holding have embarked on a transformative partnership aimed at revolutionizing access to finance for small and medium-sized enterprises (SMEs) in Burkina Faso.

This landmark collaboration, unveiled on January 16, 2024, promises to address the longstanding financing challenges hindering SME growth and development in the West African nation.

In Burkina Faso, where the GDP stands at USD 18.82 billion and the population totals 22.7 million, small and medium-sized enterprises (SMEs) play a pivotal role in driving economic growth.

Accounting for 35-40% of the GDP, SMEs are significant contributors to the country’s economic vitality, creating jobs, fostering innovation, and driving local development.

By combining AGF’s financial guarantee expertise with Vista Group Holding’s extensive network and lending activities, the partnership seeks to catalyze economic growth, empower women-led businesses, and foster inclusive development.

At the heart of this partnership lies a commitment to unlocking growth opportunities for SMEs in Burkina Faso and beyond.

AGF’s pledge of a substantial loan portfolio guarantee of USD 50 million will provide a crucial lifeline for Vista Group Holding’s lending endeavors to SMEs across the country.

This injection of funds aims to bridge the financing gap that has long stifled SME expansion and development efforts, particularly in underserved markets such as women-owned businesses, green enterprises, and youth-led ventures.

The strategic alliance between AGF and Vista Group Holding is strategically designed to promote financial inclusion and increase access to finance for entrepreneurs, thereby fostering inclusive economic growth in the region.

By focusing on underserved markets, the partnership aims to address the systemic barriers that have historically marginalized SMEs, especially those led by women and young entrepreneurs.

Through tailored financial support and resources, AGF and Vista Group Holding aspire to create a supportive ecosystem that enables SMEs to thrive and seize growth opportunities.

Jules Ngankam, Group Chief Executive Officer of AGF, expressed optimism about the partnership’s potential to unlock the immense potential of SMEs in the region and drive inclusive economic growth through increased access to financing.

He emphasized the importance of leveraging combined expertise and resources to empower SMEs and create a more prosperous future for West Africa.

“We are excited to partner with Vista Group, one of the largest leading players in the West African banking landscape,” said Jules Ngankam, Group Chief Executive Officer, AGF. “This collaboration will leverage our combined expertise and resources to unlock the immense potential of SMEs in the region, drive inclusive economic growth through increased access to financing.”

Yao Kouassi, Managing Director of Vista Group Holding, echoed these sentiments, highlighting the partnership’s significance in empowering SMEs and promoting financial inclusion across the region.

He emphasized the partnership’s alignment with Vista Group Holding’s expansion goals, underscoring its broader regional impact beyond Burkina Faso.

“Partnering with AGF is a significant step in our mission to empower SMEs and contribute to financial inclusion across West Africa. This facility will enable us to expand our reach and provide crucial financial support to businesses that are driving economic development in these countries. This aligns with our goal to expand our footprint beyond the Guinean Market to ECOWAS and the Central African Economic and Monetary Community (CAEMAC).”

Furthermore, the partnership leverages the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program, supported by the African Development Bank, to unlock up to USD 3 billion in financing for Women SMEs in Africa through financial institutions.

This reflects a commitment to empowering women entrepreneurs and promoting economic growth in the region.

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Women entrepreneurs play a significant role in Burkina Faso’s economy, contributing to higher revenues, job creation, and social development.

Despite their substantial contributions, women-led businesses often face unique challenges, including limited access to finance and gender-related barriers.

This partnership not only empowers women entrepreneurs but also promotes gender equality and fosters inclusive economic growth in Burkina Faso.

In addition to financial support, AGF will provide a capacity development program tailored to each subsidiary based on their needs to further enhance the impact of the guarantee.

This holistic approach highlights the commitment of both AGF and Vista Group Holding to supporting SMEs and driving inclusive economic growth in West Africa.