Dr Bernard Goumou Launches Activities of the Business Loan Guarantee Fund in Guinea

Africa-Press – Guinea. Like other countries on the continent, Guinea is characterized by a large number of small and medium-sized enterprises which sometimes encounter enormous difficulties in accessing bank and financial financing.

This is why the government has rethought to stimulate economic growth. In this dynamic, the creation and development of SMEs constitute a strong axis for growth and the creation of inclusive wealth.

Thus, one of the levers identified in recent years is the creation of favorable conditions for reducing financing constraints for SMEs through risk-sharing mechanisms. Hence the creation of the Business Loan Guarantee Fund (FGPE).

A dynamic instrument which was launched by the Prime Minister this Wednesday, August 2, 2023 in the interest of the Guinean private sector as a whole and small and medium-sized enterprises in particular.

In his welcome speech, the Chairman of the Board of Directors of the FGPE assured that this fund will benefit from the unwavering support of the members of the Board of Directors to carry the priorities of the President of the Transition and his government by transforming them into projects. concrete.

Continuing, Mr. Sékou Ahmed Koumbassa said that the Business Loan Guarantee Fund will fully play its role in the structure of a common project and in the construction of a dynamic and job-creating ecosystem, especially among vulnerable populations, especially women and young people.

For his part, Mr. Mamadou Saliou Diallo, on behalf of the representative of the World Bank, expressed all the pleasure for his institution to participate in the launch of the activities of the FGPE; first public-private guarantee fund in Guinea, financed in part by the project to strengthen capacities, competitiveness, access to markets and financing for SMEs.

‘The World Bank believes in the driving role of SME access to finance that can go a long way toward realizing its twin goals of ending extreme poverty and promoting shared prosperity,’ he said.

Speaking, Governor of the Central Bank of the Republic of Guinea said that it is not uncommon to hear the tree falling, while we do not often hear the forest growing.

“So this Guarantee Fund will allow us to accelerate the growth of this forest,” said Dr. Karamo Kaba.

Speaking, Mr. Moussa Cissé, Minister of Economy and Finance noted that with the globalization of economies, economic and financial and now health crises are becoming widespread and spreading in real time.

“This calls on those responsible at all levels to adapt the mechanisms of intervention and support for the economy”, he taught.

For her part, the Minister of Commerce, Industry and SMEs will say that it is in the context of the refoundation of Guinea that the Guarantee Fund for business loans was created, with the main mission: to boost private sector activities in general and those of SMEs in particular. Anything that will result in easy access to bank financing with more attractive interest rates.

“We must therefore create, through this fund, an environment to support SMEs and promote financial inclusion so that they can have equitable access to markets and means of financing,” said Ms. Louopou Lamah.

In his speech, the Director General of the FGPE welcomed the idea that prevailed in the operationalization of this instrument for reviving the economy and the private sector.

According to Mr. Abdoulaye Diallo, this tool remains a real help for SMEs by guaranteeing their financing.

‘There are three driving forces for this: the first driving force is guarantees. We have two products at this level, the partial portfolio guarantee and the individual guarantee. But at the same time, we also have other complementary products that we are launching. This is all that facilitates payment terms for SMEs,” explained the Managing Director of the Fund.

It was the Prime Minister, head of government, who launched the activities of the FGPE. According to Dr. Bernard Goumou, the wait has been long.

“But by the strength of our common conviction for hard collective work, this dynamic instrument becomes operational in the interest of the Guinean private sector as a whole and small and medium-sized enterprises in particular”, he rejoiced in substance.

While reaffirming his government’s determination to boost the private sector through this fund, the Prime Minister said that this new risk-sharing mechanism will now allow financial institutions to increase their financing of businesses, especially those that are vulnerable and victims of credit ransom.

It will be used, among other things, for training, structuring and financing innovative value-creating projects. The impact of this support must be direct and perceptible.

Before closing his speech, Dr. Bernard Goumou launched a solemn appeal to the leaders of this fund for a better popularization of the operating mechanism throughout the national territory.

To financial institutions, banks, insurance companies, microfinance, an invitation was made to them with a view to their real adhesion for the operationalization of this fund in an acceleration of disbursement for the benefit of SMEs in order to allow our private sector to reach the speed of cruise so much requested by the highest authorities.

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About the EGPF

The Business Loan Guarantee Fund is a public limited company approved as a specialized financial institution by the Central Bank of the Republic of Guinea.

It is placed under the technical supervision of the Ministry of Trade, Industry and Small and Medium Enterprises and the financial supervision of the Ministry of Economy and Finance.

The purpose of the FGPE is to promote the financing and growth of Guinean businesses in general and more specifically access to financing for small and medium-sized businesses.

The bank credit guarantee is one of the main instruments of the FGPE to support business financing. This mechanism consists of reducing the risk of SMEs by providing additional guarantees to banks and microfinance institutions as part of their financing activity through a risk-sharing mechanism.

As a financial institution, the FGPE has governance and control bodies that comply with the requirements of the regulator; combining the best of the public and the best of the private.

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