Credit flow to small and medium scale enterprises (SMEs) in the country is set to improve provided banks embrace a risk-sharing instrument introduced by the French Development agency (AFD) to underwrite part of the risks of funds lent to SMEs.
The instrument dubbed, the Support for the Risk of Financing Private Investment (ARIZ) is a guarantee instrument that underwrites part of the risks banks incur in lending to SMEs in the operational areas of AFD.