Equity Guarantee

This is a guarantee that covers initial capital investment loss for investors providing equity or quasi equity to Small and Medium-sized Enterprises.

The Equity Guarantee (EG) provide an alternative source of financing to SMEs facing difficulties in accessing Bank financing due to their weak financial structure.

Key Features

• Coverage: Up to 50%
• USD 1,000,000

Benefits

• Enables PFIs scale-up equity capital financing of SMEs with promising outlook, but relatively weak financial structures as well as those in the  seed and start-up phase, mezzanine financing and risk capital operations;

Through the Capacity Development component of the EG

• Develops and strengthens the skills, management practices, strategies, systems, competencies and abilities of PFIs to effectively increase their SME financing business;
• Assists SMEs enhance their business managerial capabilities especially in areas which include among others, governance, human capital management, quality control, packaging, financial management, and marketing

Eligibility Criteria

• The request must be from Private Equity Funds or Venture Capitals targeting SMEs
• The target of the Equity Guarantee cuts across all sectors with an exception of those listed in AGF’s exclusion list.