The session explored the growing relevance of Sharia-compliant financial instruments and their potential to enhance access to finance for SMEs and entrepreneurs across the Euro-Mediterranean and MENA regions.

Moderated by Ms. Nagla Bahr, Lead Representative of EMGN, Executive Board Member of CGC Egypt, and African Coordinator of the Global Network for Guarantee Institutions (GNGI), the webinar gathered experts, regulators, bankers, and FinTech representatives to discuss:

• The key differences between conventional and Islamic guarantee schemes;
• Sharia-compliant structures and operational frameworks;
• The role of FinTechs, smart contracts, and digital finance in developing innovative guarantee products;
• Opportunities for collaboration between guarantee institutions and Islamic finance stakeholders.

Distinguished speakers included Dr. Mohamed El-Jafari (Senior Independent Expert, Amman), Dr. Mohamed ElBeltagie (Chairman, Egyptian Islamic Finance Association, Cairo), Dr. Homam Hashem (CEO, Kafalah Saudi Guarantee Scheme, Riyadh), Bahaa Aldeen Omar Khashagji (Head of MSMEs, Bank Saudi Fransi, Riyadh), and Mr. Azhar Tasadduq (Founder & CEO, Fauree, Dubai).

Ms. Nagla Bahr underlined: “This webinar provided a valuable opportunity to deepen understanding of Sharia-compliant financial instruments and their potential to strengthen access to finance for SMEs.”

The discussions highlighted the strong interest among participants in continuing the dialogue and advancing collaboration on the development of Sharia-compliant guarantee mechanisms. A follow-up working group and future joint sessions will further explore practical pathways to support Islamic finance innovation across the region.

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This edition of the academy will bring together EMGN members and invited institutions to share experiences and operational practices in green product design and ESG integration. The program will highlight how Credit Guarantee Institutions (CGIs) can develop innovative green guarantee schemes, align with international sustainability frameworks, and respond to increasing regulatory and market demands for environmental, social, and governance (ESG) transparency.

The two-day event will feature interactive peer-to-peer sessions, presentations of green guarantee practices from the EMGN network and guest institutions from Finland and Kosovo, and sessions with leading experts from organizations such as the Green Guarantee Group, the Development Guarantee Group, the Green Guarantee Company, KPMG Ghana, and the International Labour Organisation.

Day 1 will be dedicated to Green Guarantee Schemes in Action, with a focus on practical approaches to product design, impact metrics, and collaborative financing models.

Day 2 will cover ESG Monitoring and Integration, exploring actionable strategies for embedding ESG criteria into institutional operations, risk frameworks, and reporting systems.

Moderated by experienced facilitators and international specialists, the academy aims to strengthen cross-regional collaboration and equip CGIs with the tools to advance the green transition through more effective and responsible guarantee mechanisms.

The Spring Academy of 2025 is organised by the Euro-Mediterranean Guarantee Network (EMGN), led by the Euro-Mediterranean Economists Association (EMEA) and the European Institute of the Mediterranean (IEMED) in collaboration with the Development Guarantee Group, the Green Guarantee Company,  and the International Labour Organization (ILO). The Academy is hosted by the Union for the Mediterranean (UfM) as a side event to the Sustainable Digital Week.

Link to the event agenda

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Held against the backdrop of economic inequality, limited SME access to finance, and the increasing impact of climate change, the conference underscored the critical role of local credit guarantee schemes (CGS) in fostering economic resilience and sustainability across the Mediterranean. Despite the significant role of CGS, discussions highlighted that their use remains limited within SME lending portfolios. The event served as a platform for financial leaders to deliberate on best practices, policy recommendations, and mechanisms to enhance the outreach and impact of these schemes.

The conference opened with welcome speeches by Hicham Zanati Serghini, CEO of TAMWILCOM; Mohammed Tarek Bchir, Acting Head of the Department of Treasury and External Finance, Ministry of Economy and Finance, Kingdom of Morocco; Nagla Bahr, EMGN Lead Representative and Executive Board Member of CGC Credit Guarantee Company – Egypt; and Nasser Kamel, Secretary General of the Union for the Mediterranean.

Following the welcome speeches, Roger Albinyana, Managing Director of IEMed, and Prof. Rym Ayadi, Founder and President of EMEA, addressed the audience with opening remarks. In her speech, Prof. Ayadi emphasized the importance of guarantee schemes, stating, “Guarantee schemes must not only de-risk finance but also de-risk the future—by equipping businesses, financial institutions, and workers with the skills to navigate uncertainty and drive sustainable growth.”

Key Sessions and Discussions

Session 1: EMGN Members’ Impacts and Success Stories

The first session, titled “EMGN Members’ Impacts and Success Stories,” featured a presentation by Christine de Visser, EMEA Project Manager, on “EMGN Impact and Consolidated Report on Members’ Performance.” This was followed by a discussion on key takeaways from EMGN’s CEOs and success stories, featuring:

• Taoufiq Lahrach, Deputy CEO, TAMWILCOM
• Adnan Naji, Director General, Jordan Loan Guarantee Corporation
• Homam Hashem, CEO, Kafalah

The session concluded with the presentation of the “ILO Think Impact Toolkit for Guarantee Instruments” by Tomoka Omoto, Officer in Sustainable Investing and Just Transition Financing at the International Labour Organization (ILO).

Session 2: Mainstreaming Local Credit Guarantees – Perspectives from Stakeholders

The second session focused on perspectives from lenders and investors on expanding the outreach of Credit Guarantee Schemes (CGS) and their role in climate change initiatives. Panelists discussed the significance of guarantee mechanisms, the challenges faced, and opportunities for enhancing their impact. Speakers:

• Nabil Badr, Deputy Head of Banking Supervision, Bank Al-Maghrib
• Nejia Gharbi, Director General, Caisse des Dépôts et Consignations (CDC), Vice President, MED Confederation
• Panagiotis Tournavitis, CEO, Cooperative Bank of Karditsa
• Tarik Haddi, CEO, Azur Innovation Fund

The session was moderated by Roger Albinyana, Managing Director of IEMed.

Session 3: Perspectives from International Financial Institutions and Multilateral Donors

The third and final session, “Mainstreaming Local Credit Guarantees: Perspectives from International Financial Institutions (IFIs) and Multilateral Donors”, examined how international organizations could integrate Mediterranean Credit Guarantee Schemes (CGS) into their operations. Discussions revolved around economic development, green finance integration, and funding opportunities for regional schemes.

Moderated by Nagla Bahr, EMGN Lead Representative and Executive Board Member of CGC Credit Guarantee Company – Egypt, the panel featured:

• Janne Rajpar, Office Director in Morocco, KfW Development Bank
• Houda Zinoun, Senior Investment Officer, Financial Institutions Group, International Finance Corporation (IFC)
• Fadwa Bennani, Senior Financial Sector Specialist, The World Bank
• Ismail Mahamoud, Principal Investment Officer, African Development Bank
• Lamiae Derraji, Principal Banker – Financial Institutions, EBRD
• Adrien de Bassompierre, Head of EIB Representation in Morocco, European Investment Bank (EIB)

The EMGN 5th Annual Conference concluded with closing remarks by Nagla Bahr and Chris De Noose, President of the MED Confederation, marking the end of a successful event aimed at strengthening credit guarantee mechanisms and enhancing SME access to finance across the Mediterranean region.

After the end of the Annual Conference, EMGN members were invited to attend the Steering Committee meeting of the Network.

Prof. Ayadi’s speech at the 5th Annual Conference “Guaranteeing the Future: Empowering Skills for Resilient Finance in the Euro-Mediterranean” is available here.

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Local credit guarantee schemes play a crucial role in mitigating the risks for lenders and investors, thereby facilitating increased lending to SMEs. These guarantees help SMEs secure the necessary funds to grow, innovate, address new challenges as per the climate change, and contribute to economic development. Mainstreaming these schemes can significantly enhance financial inclusion and economic resilience across the Mediterranean region.

However, CGS’ usage in the region is often limited to a relatively small share of the SME lending portfolio as well as the need for expanding guarantee products addressing the new challenges, which might imply that there remains a significant growth potential.

It is within this context that the Euro-Mediterranean Guarantee Network (EMGN) organises its fifth Annual Conference, with the aim to provide a platform for stakeholders to delve into the strategies and best practices for better integrating local credit guarantees into the international and national financial systems of Mediterranean countries and in fine enhance their financial resources, expand their risk frame to incorporate new challenges as in climate change aspects, which should consequently vitalize their role and increase their outreach. The conference will highlight the main new challenge of climate change, explore the perspectives of the lenders, investors, international financial institutions (IFIs), and multilateral donors on how to optimise these schemes to support SMEs’ access to credit in the region.

The event is co-organised by TAMWILCOM, the European Institute of the Mediterranean (IEMed), the Euro-Mediterranean Economists Association (EMEA) and the MED Confederation.

Members of the EMGN will be invited to attend the Steering Committee meeting, on 20 February at 15:00 local time.

Link to the event agenda

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Additionally, experts will be invited to discuss communication strategies with international Development agencies and local banks and to teach participants the art of mastering storytelling. Moderated by a professional moderator and expert in communication, the academy promises to be rich in interactions, foster collaboration, and bring valuable insights for participants to apply within their institutions to enhance their operations.

The Autumn Academy of 2024 is organised by the Euro-Mediterranean Guarantee Network (EMGN), led by the Euro-Mediterranean Economists Association (EMEA) in collaboration with The Change Initiative and TEDx Ambassador (TED), Coach and Presenter at TED & TEDx, Mr Ajit Sharma. The Academy is hosted by CGC Egypt, a Credit Guarantee Company in Egypt, and a member of the EMGN Network. EMGN Academies are carried out as part of a project financed by the German Agency for International Cooperation (GIZ) commissioned by the Government of the Federal Republic of Germany, namely: “Innovation Fund Jobs through Trade and Investment in the Southern Neighbourhood of the EU”.

Download EMGN Autumn Academy 2024 booklet

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The Mediterranean region faces pressing challenges such as environmental degradation, climate change, and economic inequality. In response to these global concerns, the green economy emerges as a path to sustainable development and shared prosperity. However, shifting towards sustainable practices and technologies requires significant investments. Therefore, innovative financial mechanisms for small and medium-sized enterprises (SMEs) are crucial to drive sustainable progress in the Mediterranean region.

Micro, small and medium-sized enterprises (MSMEs) account for 90-95% of all registered companies of the Mediterranean region, employing two-thirds of the labour force in the formal sector. MSMEs are a tool to create long-term employment and have the potential to become the main drivers of sustainable regional development, not only in terms of economic growth but also by boosting industrial innovation and infrastructure, promoting socioeconomic inclusion, and advancing the green and digital transitions.

Nonetheless, MSMEs continue to be excluded from financial markets. Thus, there is a pressing need to establish adequate mechanisms to favour investments and help their growth and success. Supporting this sector is one of the main professional objectives of Nagla Bahr, the chairwoman of the Euro-Mediterranean Guarantee Network (EMGN).

“I had always wanted to study economics. Since I was very young, I have always been curious to understand how the world works and unveil its power games and, to me, that is what economics is about,” Nagla told the UfM. After getting her degree, her close contact with EU-funded projects in Egypt led her to specialise in economic development.

Nagla has always viewed start-ups as the main motors of the economy and potential drivers of sustainable development. Because of this, she decided to enter the credit guarantee industry to support and empower SMEs and ensure their launch and continuity. In her own words: “Not only do I love what I do, but I also believe in what I do.”

During the early stages of Nagla’s career in the credit guarantee industry, meetings would take place sporadically between certain North African and Southern European countries. Nonetheless, she believes there lacked a solid structure that could help consolidate North-South relations in the Mediterranean. It was in this context that the UfM appeared to fill this role in 2012, which led to the labelling of the Euro-Mediterranean Guarantee Network (EMGN) in 2022. The UfM label is an endorsement of projects of high quality and potential which helps to increase awareness and visibility and facilitates access to a network of potential donors and partners, capitalizing on the convening power of the UfM.

“The UfM has acted as an irreplaceable umbrella to facilitate the connection between the North and the South of the Mediterranean region in the credit guarantee industry,” she said.

The EMGN project seeks to improve access to financing for MSMEs by uniting Credit Guarantee Schemes (CGS) operating in the Euro-Mediterranean region. It focuses on four interrelated actions: training, research and development, advocacy and communication, and knowledge sharing. Nagla, as the chairwoman of the project, says the exchange of best practices has enabled Southern Mediterranean countries to get ideas from the more solidified markets and industries of Northern countries. At the same time, she pointed to how Northern Mediterranean countries have been able to learn innovative strategies and approaches that Southern countries have been bringing to the table.

The EMGN is a key initiative to help MSMEs, especially those led by young people and women entrepreneurs, close the finance gap in the Mediterranean region. Nagla, while describing start-ups as the motors of our economies, presented CGS as the main facilitators for investment, thus as a great way for entrepreneurs to receive the needed funding to turn their ideas into businesses.

Between the period of 2020 and 2023 the EMGN has:

• Grown the network from 8 full members to 11 full members and 5 associate members, strengthening its Euro- Mediterranean dimension.
• Organised 7 Training Academies with around 100 participants trained on digitalisation, green guarantee, and risk management.
• Established 3 working groups on data collection, digitalisation and regional counter-guarantee to research and develop new product ideas.
• Increased cooperation between EU Guarantee schemes and Southern and Eastern Mediterranean Guarantee.
• Increased awareness on the impact of Credit Guarantees for MSME’s access to investment.

The CGS members of the EMGN have also estimated that between 70-90% of MSMEs would not have been able to receive a loan without a guarantee, proving their impact and relevance.

Reflecting on her hopes for the credit guarantee industry in the future, Nagla argued that the sustainability of our economies demands more robust and resilient credit guarantees in the Mediterranean region that deliver efficient financial tools and can anticipate and overcome market disruptions. To achieve these goals, initiatives like the EMGN gain special relevance as a key platform to showcase best practices, exchange knowledge, and enhance the importance of CGSs in the region.

When asked what advice she would give any young entrepreneur, Nagla emphasised the importance of education. As she stated, it is not only about having a great and innovative idea but also about having the financial, marketing, administration, and legal skills for young people to be able to start their own businesses.

Keep reading about the initiative she champions here!

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Enhancing access to finance for Micro, Small and Medium Enterprises (MSMEs) is high on policy makers’ agenda around the world, due to their role in the overall development and inclusive growth of nations. MSMEs are an important sector in the MENA region and have contributed immensely to the region’s socio-economic development. As the largest employer in the region, MSMEs play a significant role in reducing unemployment rates and stimulating economic development and innovation. However, their viability and growth can be restricted by lack of access to credit and equity, which results in a less vibrant private sector (Ayadi et al., 2021). In particular, MSMEs in emerging economies identify access to finance as a key barrier to their growth. According to the SME Finance Forum, the MENA region has the highest proportion of MSME finance gap compared to potential demand, measured at 85%. Access to credit for MSMEs is limited by a number of factors, including information asymmetries, as these enterprises are more opaque than large firms, and lack of collateral (Ayadi & Shaban, 2021; Barajas et al., 2020).

One of the key tools used by regulators and policy makers to enhance MSMEs’ access to finance is guarantee schemes. These schemes act as mechanisms of risk transfer, under which a guarantor (the guarantee scheme) ensures the lender (financial institutions; mainly banks) against a proportion of the possible losses incurred when extending a loan. This helps banks overcome collateral and information asymmetry constraints. The role of Credit Guarantee Schemes (CGSs) became clear during the COVID-19 crisis, as governments in the region provided financial support to credit guarantee schemes, to channel them to sectors in need (Ayadi & Sha’ban, 2021).

Hence, the development of CGSs in the region can have a clear impact on MSME access to finance. In recent years, CGSs witnessed significant growth, not only in terms of volume but also in product innovations, operations and digitalisation.

This policy paper provides an analysis of the role of CGSs in promoting access to finance for MSMEs and the impact of digital strategies. First, this paper provides an overview of MSME financial inclusion in the region and the challenges faced by these firms in accessing formal banking services. Second, it reviews the design and performance of guarantee schemes operating in Egypt, Tunisia, Lebanon, Jordan, Morocco and Algeria (EMGN members from the Southern Mediterranean). The analysis is based on a comprehensive literature review, desk research, a survey and meetings conducted with guarantee schemes operating in these countries. The paper clarifies the role of guarantee schemes in enhancing access to finance for MSMEs and how digital solutions have the potential to enhance their outreach. Finally, it provides policy recommendations on how to strengthen their role.

Link to publication

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Additionally, experts will be invited to discuss the implementation of IFRS9 for guarantee institutions, and special guests from the African Solidarity Fund will share their experiences with regional guarantee mechanisms in Africa. Moderated by a team of consultants with over 25 years of experience in the financial sector, the academy promises to be rich in interactions, foster collaboration, and bring valuable insights for participants to apply within their institutions to enhance their operations.

The Spring Academy of 2024 is organised by the Euro-Mediterranean Guarantee Network (EMGN), led by the Euro-Mediterranean Economists Association (EMEA) in collaboration with FINACTU. The Academy is hosted by SOTUGAR, a Credit Guarantee Company in Tunis, and a member of the EMGN Network. EMGN Academies are carried out as part of a project financed by the German Agency for International Cooperation (GIZ) commissioned by the Government of the Federal Republic of Germany, namely: “Innovation Fund Jobs through Trade and Investment in the Southern Neighbourhood of the EU”.

Download EMGN Spring Academy 2024 booklet_Eng

Download EMGN Spring Academy 2024 booklet_FR

The post <strong>EMGN Spring Academy 2024: Risk Management, Pricing, and Accounting Standards, 29 – 30 May 2024</strong> appeared first on EMGN.

The European Association of Guarantee Institutions – AECM, is a member-based non-profit international association, founded in 1992 to represent its members towards EU institutions, to facilitate the knowledge exchange between its members and to promote the guarantee instrument. AECM is an Associated Member of EMGN.

For more info on the event, the agenda and registration details please visit https://aecm.eu/events/aecm-annual-event-warsaw-2024/

The post <strong>AECM Annual Event “The Twin Transition Towards a Green and Digital Economy”</strong> appeared first on EMGN.

On 2022 EMGN was granted the Union for the Mediterranean (UfM) label for its regional added-value. The UfM label allows project promoters to mobilise governments and stakeholders, raise awareness and visibility and gain access to a strong network of donors and financial institutions.

Following the UfM meeting, the coordination team of EMGN, i.e. EMGN Chair Ms Nagla Bahr, EMEA President Prof. Rym Ayadi, and Roger Albinyana, Managing Director of IEMED, along with EMEA Project Manager Christine De Visser, met in the EMEA offices in Sant Pau Recinte Modernista, Barcelona, where they discuss EMGN’s activities for 2024, with a particular focus on the upcoming academies.

During the meeting, they delved into the agenda, content, and potential speakers for these events. Additionally, they underscored the advantages of regional initiatives that promote coordination among CG institutions, highlighting the value of peer-to-peer learning and the benefits of operational harmonisation between CG institutions in the region.

The Euro-Mediterranean Guarantee Network – EMGN seeks to alleviate the region’s structural constraints for MSMEs to access to finance by gathering guarantee schemes active in the countries of the Euro-Mediterranean.

EMGN is promoted by the Euro-Mediterranean Economists Association – EMEA, the European Institute of the Mediterranean (IEMed) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

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At the conference, Mrs. Nagla Bahr, CEO CGC Egypt and EMGN Chairwoman. spoke at Preliminary Session and 3rd session “Guarantee institutions impact actors”. Furthermore, EMEA president Prof. Rym Ayadi participated at the 1st session “Evolution of the institutional Framework”.

The institutional guarantee of MSME financing has been undergoing a significant development in the MENA Region, following the example of developed and emerging economies in the rest of the world. This development, both quantitative (volume of activity and resources committed, SME beneficiaries, various additionalities) and qualitative (evolution of the economic model, diversification of the guarantee offer, digitalization…), observed at the level of guarantee structures, is due to the important role these institutions play as regards access to financing for SMEs, which is a major determinant of economic growth, employment, and social integration.

At the same time, our societies are also undergoing continuous evolution and transformation. The COVID-19 crisis, that has disrupted our daily lives and activities, has revealed the significant role played by guarantee institutions and programs. Similarly, energy, environmental and food shocks, as well as the increasing scarcity of resources, will pose new challenges in the coming years.

After decades of activity in the field of institutional credit guarantee in the MENA region, the 7th conference examined the road travelled and the achievements that have marked it, as well as the areas for development and the challenges to be met, in order to enable public authorities and donors, to lay the foundations for a sustainable long-term activity.

Link to the Conference website: https://arab-guarantee.com.tn/

The Euro-Mediterranean Guarantee Network – EMGN seeks to alleviate the region’s structural constraints for MSMEs to access to finance by gathering guarantee schemes active in the countries of the Euro-Mediterranean. EMGN is promoted by the Euro-Mediterranean Economists Association – EMEA, the European Institute of the Mediterranean (IEMed) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

The post EMGN co-organises the 7th International MENA Guarantee Conference “Guarantee Institutions: Decades of Activity; Realities and Challenges” appeared first on EMGN.

The Autumn Academy of 2023 is organised by the Euro-Mediterranean Guarantee Network (EMGN), led by the Euro-Mediterranean Economists Association (EMEA), in collaboration with Center for Banking Research of Bayes Business School, and the United Nations Economic and Social Commission for Western Asia (ESCWA). The event is hosted by Sotugar, Credit Guarantee Company in Tunisia and member of the EMGN Network.  The EMGN Academies are carried out as part of a project financed by the German Agency for International Cooperation (GIZ) commissioned by the Government of the Federal Republic of Germany, namely: “Innovation Fund Jobs through Trade and Investment in the Southern Neighbourhood of the EU”.

The Academy will combine contributions from various experts, along with interactive sessions tailored for adult education, facilitated by a professional facilitator who will lead the group throughout the process.

Download EMGN Autumn Academy 2023 booklet .pdf

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