• Thu. Jul 25th, 2024

CEOs of Burundian banks and microfinance institutions invited to work with the ASF


Jul 5, 2024

BUJUMBURA, July 4th (ABP) – The managers of Burundi’s banks and microfinance institutions have been asked to work with the African Solidarity Fund (ASF) to promote and support access to finance for Burundi’s economic sectors, the ASF administrator for Burundi, who is also assistant to the Minister of Finance, Isidora Ntakiyiruta, said in Bujumbura on Friday 28 June.

Mrs. Ntakiyiruta said the aim of the meeting was to remind Burundi’s bank and microfinance managers of the benefits of the ASF in strengthening access to finance for Burundi’s economic sectors.

According to her, the ASF remains committed to supporting Burundi’s economic development and banks, microfinance institutions, national guarantee funds and the private sector to achieve the government’s vision of Burundi as an emerging country by 2040 and a developed country by 2060.

                                                                           Family photo of participants

The ASF administrator for Burundi took the opportunity to call on all those in charge of banks, microfinance institutions, national guarantee funds and the private sector in Burundi to redouble their efforts to work with the ASF, as Burundi is one of the Fund’s African member countries. The Fund’s aim, she stressed, is to work with them and help them get money for loans that their clients are unable to repay. It will also boost the national treasury.

The Resident Head of Mission, Emmanuel Adade Sallah, recalled that they had undertaken a mission to various African member states of the ASF to exchange views with bank and microfinance managers, explaining that the Fund’s objective is to contribute to the economic development and social progress of its African member states by facilitating, through its various intervention techniques, access to the financial resources needed to carry out investment projects and other income-generating activities.

According to him, the creation of the ASF was a decision taken by African Heads of State in March 1975 in the Central African Republic. The FSA offers a range of guarantees, including bank loan guarantees, guarantees for the raising of resources, portfolio guarantees, cover for public contracts and cover for import-export operations.

Regarding the bank loan guarantee, he explained that the FSA offers a risk-sharing guarantee to credit institutions in order to facilitate business financing. With regard to the guarantee for raising funds, he explained that the FSA provides a guarantee to cover the risks incurred by the investor or lender in raising funds on the financial market.

He added that the FSA’s coverage of public contracts takes two forms: counter-guarantee of individual bonds and counter-guarantee of bonding lines. The FSA provides a risk-sharing guarantee with a financial institution involved in an import-export transaction.

The 21 African member countries of the African Solidarity Fund include Benin, Burkina Faso, Burundi, Gabon, Guinea, Mauritius, Rwanda, Senegal, Togo and Chad.