Guarantee fund
Guarantee fund
The guarantee fund aims primarily to promote the development of emptying companies by facilitating access to credit, in order to enable them to renew their emptying trucks and purchase spare parts, and to be able to ultimately comply with future requirements related to the implementation of the operating license.
The Guarantee Fund is trying to promote the development of a certain category of businesses by facilitating their access to funding.
It seeks to urge the bankers to finance businesses that are not able to provide adequate collateral or whose projects may seem too risky.
For the emptiers, this is a major instrument to boost the sanitation sector.
Why a Guarantee Fund ?
A guarantee is a financial instrument to protect a credit institution (usually a commercial bank) in the event the borrower fails to repay a loan.
The guarantee is an irrevocable promise from the guarantor to the lender: if the borrower fails to repay, the guarantor will fully or partially assume the borrower’s obligations. The guarantee fund compensates for any losses incurred by the credit institution in granting the loan.
Expected Results
- The guarantee fund will finance 11 parts and 145 fecal sludge emptying operators on six years
- 18 credit applications already submitted to the bank were funded
Terms & Conditions
- The amount of the guarantee fund totaled 205 000 000 FCFA.
- The coverage rate is 25%
- The beneficiary of this guarantee fund must work as a sludge emptying professionnal for at least 2 years and hold a company formally established.
The Program is registering mechanical emptying service providers. Register my truck
