Guaranty Trust Bank plc which is one of the leading banks in Nigeria has launched a N3 Billion Ariz Portfolio Guarantee Scheme in partnership with Agence Francaise de Development (AFD). The initiative is designed to empower small and medium entrepreneurs by making fund available to them.
The collaboration of GTBank and AFD is a risk sharing mechanism on loan advances and it is the first of its kind in Anglophone Africa.
The Ariz Portfolio Guarantee Scheme makes it possible for banks, other financial institutions and private equity to participate safely in the financing of SME by providing local credit facilities to SMEs with foreign guarantee. The Scheme started in 2008 and since that time, it has been initiated to more than 20 francophone countries in Africa continent. Over 40 banks across the globe have joined in the Scheme. The number and volume of guarantees provided by the Scheme has continued to increase steadily on yearly basis. About 80% of guarantees have been provided on yearly basis within three years and a lot of companies have been established every year and this resulted in plenty of job creation.
Ambassador Denys Gauer of France in Nigeria highlighted the role of SMEs in job creation and development of economy. He described them as drivers of economic growth and employment. He observed that Nigeria has a lot of SMEs. But he regrettably mentioned that these businesses have limited access to funds from the bank which impaired their growth. While speaking during the launch of the event, Gauer explained that the aim of the Scheme was to help SMEs to get access easily to finance. He lauded GTBank N3B Ariz Portfolio Guarantee.
The Managing Director/CEO of GTBank, Mr. Segun Agbaje while speaking during the launch of the event said that the empowerment of SMEs was very pivotal to the sustenance of growth and development in growing economies worldwide. The sector according to him contributed little to country’s GDP. He described the sector as very crucial to the Nigerian economic make-up. He said that GTBank would provide access to long term financing for SMEs as its contribution towards improving the sector.
