GIS – 19 December, 2018: A Framework Agreement for Cooperation, to help achieve Government's vision to support innovation and business development, growth and job creation, was signed yesterday between the African Solidarity Fund (ASF) and the Development Bank of Mauritius Ltd (DBM) at Le Labourdonnais Waterfront Hotel, Caudan, in Port-Louis.
Signatories were the Director General of the ASF, Mr Ahmadou Abdoulaye, and the Director General of the DBM, Mr Lobin Dayha Unmole. The President of the DBM, Mr Anand Babbea, and several personalities were present.The Framework Agreement will enable the DBM to fully fulfill its role of facilitator by putting in place a more flexible guarantee mechanism; improve the supply of DBM products to better meet the financing needs of the population; and, effectively support project leaders in their growth and competitiveness strategy.
In a statement, DBM’s President, Mr Babbea, highlighted that the Framework Agreement for Cooperation reflects the determination of the DBM and the ASF to help the Mauritian Small and Medium Enterprises (SMEs) fulfill their objectives as well as to boost the economy. The agreement will have a significant and positive impact on the population as well as on the economy, he said.
According to him, many entrepreneurs are confronted with the difficulty of providing a suitable guarantee that meets the banking criteria which consequently result in the tardy development of viable and innovative projects with high growth potential and job creation. In order, to remedy this problem and facilitate access to financing for SMEs, the DBM has initiated steps with the African Solidarity Fund for a guarantee system for loans, technical assistance and exchange, Mr Babbea further indicated.
For his part, the Director General of ASF, Mr Abdoulaye, highlighted the mission of ASF. The African Solidarity Fund, he stated, has as
responsibility to allow the financing of investment projects through a line of credit in particular to SMEs and Microfinance Institutions;
and, to purchase equipment and refinance productive investment projects so as to meet the diverse needs of the population of each
African Solidarity Fund
The ASF was created on December 21, 1976, with the mission to facilitate the economic development of its African member states by
acting as a catalyst for financial systems to enable States and public and private enterprises have access to loans intended to finance productive investment projects, and ease the mobilisation of local and external savings, notably through guarantee interventions on
the financial markets.
The ASF has three intervention techniques: the guarantee of bank loans and bond issues; the improvement of interest rates; and, the
extension of the duration of loans by granting loans.
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