FAGACE

What FAGACE does

FAGACE (Fonds Africain de Garantie et de Coopération Economique) is an international public financial institution established in 1977 and headquartered in Cotonou, Benin. It is collectively owned by 14 African member states spanning West Africa (Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Mauritania, Niger, Senegal, Togo), Central Africa (Cameroon, Central African Republic, Congo-Brazzaville, Chad), and East Africa (Rwanda), and operates as a multilateral guarantee fund rather than a direct lender. Its core function is to provide credit guarantee instruments — Garantie Individuelle (case-by-case guarantees for SME bank loans and bond issuances), Garantie de portefeuille (portfolio guarantees enabling partner banks to lend against predefined SME criteria), and Garantie grossiste (wholesale guarantees up to 50% of principal for microfinance institutions and decentralized financial systems serving very small enterprises). These guarantees address the structural failure of collateral-based lending in African banking markets and unlock SME access to bank credit and capital markets.

The institution earns revenue primarily through transaction-based guarantee fees (flat commissions on guarantee line amounts plus aval commissions on guaranteed portfolio encours), supplemented by professional services income from the FAGACE Institute's training programs and fees from resource mobilization engagements with member states. Distribution is executed through direct partnerships with a network of commercial banks (BNM, BNDE, BPM, BPR, BRD, BOAD, BSIC, CCG, BGFI and others) that sign portfolio guarantee conventions, as well as through three regional representations in Cameroon (Central Africa), Senegal (West Africa), and Rwanda (East Africa). Complementary service lines include technical assistance (project preparation, business plan development, financial arrangement), resource mobilization, and partner matchmaking (Entremissions).

FAGACE has mobilized over 2,500 billion FCFA cumulatively through its interventions over 45+ years of operations, holds an AA- long-term issuer rating from GCR Ratings (upgraded November 2024, stable outlook), and operates under a strategic plan covering 2021–2025 titled "THE NEW MOMENTUM." Governance is exercised through a Council of Governors comprising Finance Ministers from each member state and a Board of Directors that includes three independent administrators recruited under a 2018 governance reform. Leadership rests with Director General Ngueto Tiraina YAMBAYE, whose mandate was renewed in 2023.

Name

FAGACE

Legal name

Fonds Africain de Garantie et de Coopération Economique (FAGACE)

Website

https://fagace.org

Company type

Private

Founded year

1977

Operating status

Operating

Headcount range

11–50 employees

Short description

FAGACE is a multilateral African guarantee institution founded in 1977, owned by 14 member states, providing individual, portfolio, and wholesale guarantees to banks and microfinance institutions to unlock SME financing across West, Central, and East Africa.

Ownership category

akta.pro rank

Product category

Development Finance and Credit Guarantee Services

NAICS

Other Nondepository Credit Intermediation (52229)

SIC

Federal & Federally-Sponsored Credit Agencies (6111)

akta.pro primary industry

SME Lending Platforms & Embedded SME Credit (FSAKAGAJ)

Keywords

• SME credit guarantees
• Development finance
• Microfinance guarantees
• Capacity building
• Economic cooperation

Headquarters

HQ city

Cotonou

HQ country

Benin

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Guarantee Fees and Commissions: FAGACE generates revenue through guarantee fees including commission flat on guarantee line amounts and aval commissions on guaranteed portfolio encours. The organization charges commissions for guaranteeing bank loans, bond issuances, and re-guarantees.
2. Technical Assistance Services: The FAGACE Institute provides capacity building and technical assistance to member states, financial institutions, and project promoters. Revenue is generated through training programs and technical support services.
3. Resource Mobilization: FAGACE mobilizes financial resources for member states, their entities, and the private sector to enable realization of structural projects. The organization also strengthens its own equity through debt and quasi-equity financing.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels5 records

Core offering

FAGACE is an international public financial institution that provides credit guarantee products to facilitate access to financing for small and medium enterprises (SMEs) across its 14 African member states. It offers three core guarantee instruments — Individual Guarantees, Portfolio Guarantees, and Wholesale Guarantees for microfinance institutions — complemented by technical assistance, training through the FAGACE Institute, resource mobilization, and intermediary services connecting member states and private sector with funding sources.

Product overview

FAGACE (Fonds Africain de Garantie et de Coopération Economique) is an African financial guarantee institution offering a portfolio of guarantee products and complementary services to facilitate access to financing for SMEs and economic actors across its 14 member states. The core product suite comprises three guarantee offerings: Garantie Individuelle (case-by-case guarantee for direct SME bank lending and bond issuances), Garantie de portefeuille (portfolio guarantee enabling partner banks to extend SME credit), and Garantie grossiste (wholesale guarantee for microfinance institutions serving micro and small enterprises). These are complemented by Technical Assistance (project preparation, business plan development, and financing arrangement support via the FAGACE Institute), Resource Mobilization (connecting states and private sector with funding sources), and Entremissions (partner matchmaking with global capital providers). The institution operates across 12 sectors including agro-industry, energy, infrastructure, finance, telecoms, and transport.

Differentiator

Problem solved

Functional benefit

Products and services

• Garantie Individuelle (Individual Guarantee)

Quantifiable outcome

• 2,500+ billion FCFA mobilized for development financing
• +2 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Four partnerships are on record, tiered core and minor.

• Caisse de Dépôt et Consignations du BenincoreStrategic or Co-development PartnerPartnership agreement with the Benin Deposit and Trust Fund for cooperation on development financing and guarantee operations in Benin.
• TechnoServeminorStrategic or Co-development PartnerPartnership for supporting agribusiness development and SME financing in member countries, with TechnoServe providing technical expertise.
• Partner Banks Network (BMN, BNDE, BPM, BPR, BRD, BOAD, BSIC, CCG, BGFI, BCI, BDM, BEA, BIIC, BIM, and others)coreChannel Partner/ Reseller/ DistributorExtensive network of partner banks across member states that access FAGACE guarantee lines to extend credit to SMEs. Banks sign portfolio guarantee agreements enabling them to lend to SMEs under predefined criteria.
• BEAC (Banque des États de l'Afrique Centrale)minorStrategic or Co-development PartnerCo-organization of international seminars in Cameroon with the Central Bank of African States for development financing discussions.

Scale indicators5 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• Africa Finance Corporation (AFC): Pan-African multilateral development finance institution providing project finance, trade finance, and partial risk guarantees. Overlaps with FAGACE in providing credit enhancement to African projects and SMEs, but operates at significantly larger scale.
• African Development Bank (AfDB): Continental development bank providing loans, guarantees, and technical assistance across Africa. FAGACE partners with AfDB on co-financed SME programs and shares the SME access-to-finance mandate.
• Afreximbank (African Export-Import Bank): Continental trade finance bank providing guarantees, letters of credit, and trade finance across Africa. FAGACE partners with AFREXIMBANK on member state development programs and shares the African development finance mandate.
• BADEA (Arab Bank for Economic Development in Africa): Arab-funded African development bank providing loans and grants for African infrastructure and development projects. FAGACE has a strategic financial partnership with BADEA and shares member state overlap.

Regional players

• Shelter Afrique: Pan-African housing finance institution providing mortgages and guarantees for residential development across African member states. Comparable in mandate as a member-state-owned guarantee/finance institution focused on a specific African sector.
• ECOWAS Bank for Investment and Development (EBID): Multilateral development bank serving ECOWAS member states with loans, equity, and guarantees. Overlaps with FAGACE in geographic coverage of West African member states and SME financing focus.

Others

• European Investment Bank (EIB): Global development finance institution providing credit guarantees and lines of credit to African banks for SME and infrastructure lending. Comparable as a guarantor/intermediary in African SME finance ecosystems.

Direct peers

• GuarantCo: Specialist guarantee provider for infrastructure and SME projects in lower-income countries across Africa and Asia. Comparable in offering credit guarantees to local lenders, but with a stronger infrastructure and project finance orientation than FAGACE.
• Banque Ouest Africaine de Développement (BOAD): West African multilateral development bank offering loans, guarantees, and equity to member states. Comparable to FAGACE in serving West African economies and member-state-led governance, though with broader development mandate and larger balance sheet.
• African Guarantee Fund (AGF): Pan-African guarantee fund providing partial credit guarantees to financial institutions for SME lending across Africa. Closest direct peer to FAGACE in mandate, product structure (individual and portfolio guarantees), and target market.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about FAGACE