The National Company of Guarantee and Finance of Enterprise (SNGFE) of the Kingdom of Morocco and the Guarantee Fund of Djibouti (FOGAD), represented respectively by their general directors, in this case Mr. Hicham Zanati Serghini and Mr. Aouad Ahmed Aouad Mouti, proceeded on March 1 to the signing of a memorandum of understanding whose primary purpose is the sharing of experiences knowing that the National Company of Guarantees and Finance of the Enterprise of the Kingdom of Morocco benefits with almost 73 years of experience and its creation dates back to 1949.
Also note that the Djibouti Guarantee Fund was created in March 2016 at the initiative of the President of the Republic, Ismaïl Omar Guelleh, in order to respond to the problem of access to bank financing encountered by micro, small and medium-sized businesses. This financial institution, which has legal personality and management autonomy, has so far carried out more than fifty operations for a total amount of over 220 million francs.
As a reminder, the conditions for access to the FOGAD guarantee are the simplest. Indeed, all formal micro, small and medium-sized enterprises and whatever their sectors of activity can benefit from the FOGAD guarantee.
Eligible project types are:
– Individual projects from microfinance clients concerning loans of 2 to 3 million FDJ;
– Very small business projects involving credits of 3 to 10 million FDJ ;
– Small and medium-sized business projects with credits of 10 to 30 million FDJ.
The characteristics of the guaranteed credits are :
– Any type of short-term financing in the form of a loan;
– Any type of medium-term loan with a maximum term of 7 years to finance assets, working capital requirements for start-ups and increased working capital requirements for development investments.
The maximum amount of eligible assistance is set at 30 million Djibouti francs, per company or group of companies.
Loans above 10 million Djibouti Francs are reserved for existing companies with a sound financial profile and an appropriate amount of collateral.
The proposed guaranteed amounts are :
– 50% guarantee on equipment loans granted to companies older than 3 years;
– 60% guarantee granted on loans to new companies created since less than
3 years;
– 60% guarantee granted to equipment loans with a term of 24 months or more.
In concrete terms, the process for handling files is as follows:
– The application for financing is submitted to a local bank;
– The bank studies the file;
– Once the agreement of the bank is obtained,
the latter transmits the file to FOGAD;
– FOGAD will carry out a counter-analysis
of the file ;
– Once FOGAD’s agreement has been obtained, the guarantee is granted to the bank;
– Finally, setting up the credit.
In conclusion, FOGAD, which has taken on another dimension in a very short time, is establishing itself in the financial sector by providing the most concrete responses to continue to give the necessary impetus to private initiative by encouraging the creation, development and modernization of businesses.
FOGAD also supports social development, notably through the guarantee of CPEC Djibouti loans.
The Ambassador of Djibouti to the Kingdom of Morocco, accompanied by a strong delegation composed of its main advisers attended the signing ceremony between the two financing institutions, Djiboutian and Moroccan.
Note that Ms. Choukri Abdillahi Mohamed and Mr. Ali Silaye Abdallah, respectively president and vice-president of the FOGAD Board of Directors, honored the signing of this memorandum of understanding with their presence.
Source : The Nation