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Lenders urged to increase funding for SMEs tackling climate change

October 29, 2018
By
Collins Ogutu
for Chams Media Digital

Financial institutions have been urged to increase funding towards small and medium enterprises (SMEs) in the green sector to enhance productivity. African Guarantee Fund indicates that there is an increase in the number of SMEs venturing in business that tackle issues around climate change but a lot still needs to be done.

Speaking on Friday October 26th during a tree planting exercise organized by AGF and it’s partners, African Guarantee Fund chief executive Felix Bikpo said there is need for SME lenders to increase their lending towards the SMEs in the green sector.

Lenders urged to increase funding for SMEs tackling climate change 1

Felix Bikpo, CEO African Guarantee Fund during a tree planting exercise in Kereita Forest, Lari sub county.

African Guarantee Fund has in the past six years invested a total of USD 1.4 billion in SMEs venturing in climate change industry.

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The organization has now introduced the Green Guarantee Facility- a unique product that assists financial institutions to partially cover the risks associated with financing SMEs.

Participants in the Environmental Sustainability for Tomorrow’s Economy, planted over 10,000 trees in Kereita Forest in Lari sub-county, making a significant impact towards increasing the country’s forest cover.

African Guarantee Fund which currently has has more than ten partner financial institutions in Kenya intends to hold a tree planting day annually across the country.

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