Recognised as drivers of inclusive growth, economic stability and sustainable job creation, small and medium-sized enterprises face an investment gap estimated at 331 billion dollars a year. Against this backdrop, guarantee mechanisms are emerging as levers for accelerating and sharing risk, enabling local financial institutions to better support private sector financing. These guarantees address the obstacles to access to credit, the risks of insolvency, and mitigate the often exaggerated perceptions of risk.
This side-event explores the evolution of this de-risking tool, the advantages of blended-finance and its impact on private sector growth in Africa and the MENA region.