African Guarantee Fund was set up to significantly increase the access of African Small and Medium Sized Enterprises (SMEs), to finance from the financial sector.

AGF has two lines of activity, viz:

Provision of partial financial guarantees on product and portfolio basis;

Support for capacity development of the client financial institutions to help them improve their SME financing capabilities.

AGF is currently focusing its activities on the following countries: Cameroun, Ghana, Kenya, Mali, Mozambique, Senegal, Tanzania, Uganda and Zambia and will gradually increase to cover the whole of Africa. Transactions from other African countries other than the ones mentioned above can at present also be considered. AGF has in place a regional-based roll-out plan involving all of Africa's six Regional Economic Communities (RECs).