Organised by the SME Finance Forum, managed by the International Finance Corporation (IFC), and co-hosted with the Global Finance & Technology Network (GFTN), the Forum is recognised as an official side event of the G20 South Africa Presidency.

The 2025 edition, under the theme “Building Resilience and Creating Opportunities for Growth”, will bring together global leaders from financial institutions, fintech innovators, development organisations, and policy circles to explore practical solutions to address the persistent financing challenges faced by small and medium enterprises (SMEs).

The three-day programme will include:

• Innovative financial instruments and credit guarantee mechanisms
• Public-private partnerships for financial inclusion
• Digital solutions expanding access to capital
• Policy and regulatory frameworks enabling SME growth
• Onsite study visits to leading banks, digital lenders, and SME stakeholders in South Africa

Mrs. Nagla Bahr remarked on the importance of the Forum:

“I believe the Forum is highly relevant for our members, given its diversity and the breadth of topics covered – particularly during such a challenging period for SMEs globally. It offers a unique opportunity to engage with leading voices in SME finance and bring valuable insights back to our regional networks.”

Registration is now open for this global event. For more information and to register, please visit: https://www.globalsmefinanceforum.com/

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Speech By Prof. Rym Ayadi, President of the Euro-Mediterranean Economists Association (EMEA)

Climate change adaptation is an urgent priority for the Mediterranean region, characterized by its high vulnerability to climate-related impacts such as droughts, floods, heatwaves, and rising sea levels. Addressing these risks requires substantial investments in resilient infrastructure, agriculture, water management, and coastal protection. However, financing adaptation projects remains challenging due to perceived risks, limited public budgets, and constrained private investment.

Credit Guarantees as a Financial Mechanism:

Credit guarantees have emerged as a powerful instrument to mobilize private capital for climate adaptation. By reducing perceived risks, credit guarantees encourage financial institutions and private investors to engage in sectors and projects they might otherwise avoid due to uncertainty or lack of familiarity.

In essence, a credit guarantee scheme involves a guarantor (often a public institution or a multilateral development bank) agreeing to cover part of the losses if a borrower defaults. This arrangement significantly reduces the risk for lenders, thereby lowering interest rates and improving borrowing conditions, making financing accessible for adaptation projects.

Relevance for the Mediterranean Region:

In the Mediterranean, credit guarantees can play a pivotal role by:

1. Catalyzing Private Sector Participation: Attracting commercial banks and investors to finance sustainable agricultural practices, resilient infrastructure, and water conservation technologies.
2. Supporting SMEs and Farmers: Offering SMEs and smallholder farmers better access to finance for adopting climate-resilient practices and technologies.
3. Leveraging Public Funds: Using limited public resources to leverage larger volumes of private investment, thus multiplying the overall investment capacity for adaptation.

Examples and Best Practices:

• European Investment Bank (EIB): The EIB has successfully utilized credit guarantees to mobilize substantial private investment in renewable energy projects across the Mediterranean. For example, the EIB-supported program “Green for Growth Fund” significantly improved energy efficiency and renewable energy capacity by providing guarantees that enabled local banks to extend financing to SMEs and municipalities.
• Tunisia’s PROSOL Program: This innovative program leveraged credit guarantees to finance residential and commercial solar water heaters. Supported by a partnership between the Tunisian government, UNEP, and local banks, PROSOL provided partial guarantees, reducing risks for banks and thus increasing access to financing for consumers.
• Morocco’s Agricultural Resilience Initiatives: Morocco employed credit guarantees through programs like the “Green Morocco Plan” which allowed smallholder farmers access to financing for sustainable agriculture techniques, irrigation improvements, and resilient crop varieties, thereby enhancing agricultural productivity and resilience.
• Egypt’s Water and Sanitation Projects: Credit guarantees backed by international financial institutions facilitated private sector involvement in large-scale infrastructure projects aimed at improving water management and sanitation, contributing significantly to Egypt’s climate resilience and public health goals.

Design of a Green Guarantee Instrument:

A specifically tailored green guarantee instrument for financing adaptation and mitigation in the Mediterranean should incorporate several key design features:

1. Targeted Risk Coverage: Clearly defined criteria for eligible projects and sectors such as renewable energy, water conservation, resilient agriculture, and coastal protection to ensure funds directly contribute to climate resilience and mitigation goals.
2. Flexible Guarantee Structures: Offering partial guarantees or first-loss guarantees tailored to different project scales and risk profiles, enhancing attractiveness to various types of investors, from local banks to international financiers.
3. Performance-Based Incentives: Linking guarantees to environmental and social performance outcomes to ensure project alignment with climate objectives and to encourage continuous improvements in resilience and mitigation measures.
4. Robust Monitoring and Evaluation Systems: Establishing transparent monitoring frameworks to track and report climate adaptation and mitigation impacts, thereby increasing accountability and confidence among investors and stakeholders.
5. Capacity Building Component: Including technical assistance and capacity-building programs for financial institutions, project developers, and beneficiaries to ensure effective utilization of financial resources and sustained adaptation impacts.

Connecting Adaptation and Mitigation:

Adaptation and mitigation strategies, although distinct, often intersect and reinforce each other. For instance, investments in resilient agriculture practices like agroforestry simultaneously enhance carbon sequestration (mitigation) and reduce vulnerability to extreme weather events (adaptation). Similarly, sustainable urban infrastructure projects, such as green roofs and urban forests, not only reduce urban heat island effects (adaptation) but also absorb atmospheric carbon dioxide (mitigation). Renewable energy projects in water-scarce regions, such as solar-powered desalination plants, enhance water availability (adaptation) while significantly reducing reliance on fossil fuels (mitigation). Integrated projects addressing both adaptation and mitigation offer greater efficiency, optimize resource use, and maximize climate and developmental co-benefits.

Enhancing ESG and Accelerating SDGs:

Financing climate adaptation and mitigation through credit guarantees significantly enhances organizations’ Environmental, Social, and Governance (ESG) performance by directly addressing climate risks and promoting sustainability. Such financing aligns with investors’ increasing emphasis on ESG criteria, attracting more sustainable capital. Moreover, these financial mechanisms contribute directly to the acceleration of Sustainable Development Goals (SDGs), particularly those relating to climate action (SDG 13), clean water and sanitation (SDG 6), affordable and clean energy (SDG 7), and sustainable cities and communities (SDG 11), thereby promoting holistic, sustainable development across the region.

Roadmap for EMGN to Support Guarantee Schemes:

1. Assessment and Benchmarking: Identify existing gaps and opportunities in regional guarantee schemes through comprehensive assessments and benchmarking exercises.
2. Capacity Building: Develop tailored capacity-building programs for financial institutions and guarantee scheme providers, focusing on climate-related project evaluation and risk management.
3. Networking and Collaboration: Strengthen collaboration among regional guarantee schemes through regular forums, workshops, and joint initiatives to share best practices and successful models.
4. Technical Assistance Facility: Establish a regional technical assistance facility to support the design and implementation of specialized green guarantee products and to enhance institutional capacities.
5. Policy Advocacy: Engage with policymakers to advocate for supportive regulatory frameworks that enhance the viability and scalability of climate-focused guarantee instruments.
6. Monitoring and Impact Evaluation: Implement rigorous monitoring and evaluation systems to track the performance and impact of guarantees, ensuring continuous improvement and transparency.

Conclusion:

Credit guarantees represent a crucial, innovative approach to unlocking private finance for adaptation initiatives in the Mediterranean. By mitigating investment risks and leveraging additional private capital, these instruments not only enhance climate resilience but also contribute to broader economic and social development objectives across the region.

This statement is based on the welcome speech delivered by Prof. Rym Ayadi, “The Role of Credit Guarantees to Finance Adaptation to Climate Change in the Mediterranean,” at the Euro-Mediterranean Guarantee Network (EMGN) Spring Academy 2025, held on 26–27 May in Istanbul, Türkiye.

In her address, Prof. Ayadi emphasized that: “Credit guarantee schemes are essential levers to unlock private investment and bridge the financing gap in climate adaptation and mitigation. By effectively managing risk, aligning incentives, and enhancing ESG performance, they empower Mediterranean communities and businesses to build resilience, drive sustainable growth, and collectively accelerate the journey towards achieving the Sustainable Development Goals.”

The Spring Academy of 2025 was 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 Prof. Ayadi’s speech video

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The event was 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). It was hosted by the Union for the Mediterranean (UfM) as a side event to the Sustainable Digital Week.

The Academy kicked off in Istanbul with opening remarks by Mr. Joan Borrell, Deputy Secretary General of the Union for the Mediterranean (UfM). This was followed by a welcome speech by Prof. Rym Ayadi, Founder and President of the Euro-Mediterranean Economists Association (EMEA), and Professor at Bayes Business School, City St George’s, University of London, on “The Role of Credit Guarantees to Finance Adaptation to Climate Change in the Mediterranean”.

Prof. Ayadi underlined that:

“Credit guarantee schemes are essential levers to unlock private investment and bridge the financing gap in climate adaptation and mitigation. By effectively managing risk, aligning incentives, and enhancing ESG performance, they empower Mediterranean communities and businesses to build resilience, drive sustainable growth, and collectively accelerate the journey towards achieving the Sustainable Development Goals”

This edition of the Academy brought together EMGN members and guest institutions from Finland and Kosovo to share operational experiences and innovative practices in green product design and ESG integration. Over two days, participants engaged in peer-to-peer exchanges, case presentations, and expert-led sessions focused on how Credit Guarantee Institutions (CGIs) can play a pivotal role in driving the green transition.

Day 1 centred on Green Guarantee Schemes in Action, highlighting practical approaches to product development, impact measurement, and collaborative financing models.

Day 2 focused on ESG Monitoring and Integration, exploring tools and strategies to embed ESG principles into the institutional frameworks, risk management, and reporting systems of CGIs.

Sessions featured insights from leading experts representing the Green Guarantee Group, Development Guarantee Group, Green Guarantee Company, KPMG Ghana, and the ILO. The Academy underscored the importance of aligning guarantee schemes with international sustainability standards and increasing transparency in environmental, social, and governance dimensions.

On-site were present 16 Members of EMGN, external participants, and associates, including representatives for Tamwilcom Morocco, BPIfrance, JLGC Jordan, AECM Brussels, Kafalah Saudi Arabia, HDB Greece, CGCI Algeria, and guest speakers from KGF Kosovo, Development Guarantee Group. The event was organized by Christine de Visser, Project Manager (EMEA) and Nicolas Medrano, program officer (IEMed). Online where connected colleagues from the YLG Yemen Loan Guarantee, CGC Egypt, and ‘Sotugar’ Tunisia.

The event concluded with the presentation of participation certificates by Christine de Visser, Project Manager at the Euro-Mediterranean Economists Association (EMEA) and Said Charma, Senior Economic Advisor at the Union for the Mediterranean.

Highlights:

• Guarantee institutions have the potential to play a pivotal role in unlocking climate finance by de-risking green investments, attracting private sector capital, and enabling the flow of funding toward sustainable projects, especially in emerging and developing economies where financing gaps are significant.
• The Green Guarantee Group’s mission focuses on scaling innovative, climate-aligned solutions and supporting ESG integration and risk-sharing ahead of COP30.
• A good practice from Kosovo, the Kosovo Credit Guarantee Fund showcased a green guarantee product supporting MSME investments in energy efficiency (EE) and renewable energy (RE), offering up to 70% coverage and favorable fees, along with strong non-financial support through staff training and the “Esave” platform for managing and tracking green loans.
• A good practice from Finland, showcased Finnvera’s approach to supporting the green transition by embedding climate and environmental criteria into its loan operations, offering practical insights on project screening and aligning finance with sustainability goals.
• A key highlight from the academy was the introduction of SAFE—Scaling Alternative Finance for Entrepreneurs—a pioneering funding initiative supported by Germany and the EU, offering investment-grade guarantees to alternative finance institutions to expand green and inclusive finance for MSMEs, especially women-led and green-focused businesses across MENA and beyond.
• Morocco’s Green Invest initiative, showcased Tamwilcom’s blended approach of guarantees and joint financing to support the green economy, including the integration of carbon footprint requirements for all guaranteed projects to drive sustainable investment.
• A key highlight from Jordan Loan Guarantee Company was its Green Finance Guarantee Program, designed to reduce credit risk and boost green lending to MSMEs, fully aligned with the Central Bank of Jordan’s Green Finance Strategy, and supported through close collaboration with banks to promote sustainable investments and environmental standards in lending. The program offers up to 85% guarantee coverage for projects in Amman, 90% for projects outside Amman or led by women.
• The Environment Fund Initiative showcased the power of collaboration between different actors, with Kafalah and the Saudi Environment Fund working together to support green investments. The program also includes a strong client incentive: good clients who repay their loans without any delayed payments qualify for the Environmental Fund to cover 100% of the interest paid.
• Core ESG actions for guarantee institutions include: strengthening ESG governance by appointing senior focal points and embedding ESG in board strategy; developing a clear ESG policy aligned with national and international standards; designing ESG-linked guarantee products with incentives; integrating ESG criteria into risk appraisal and due diligence; building staff and partner capacity through training and technical support; and establishing robust ESG monitoring, reporting, and disclosure practices.
• Bpifrance’s Climate Plan, launched in 2020 aims to accelerate the green transition, support renewable energy, and finance greentech innovation, while also playing a crucial advisory role to public authorities on ESG and CSR through data, expertise, and policy engagement.
• Key challenges in promoting green finance, include low MSME awareness, limited financial incentives, and insufficient bank staff capacity.
• Credit Guarantee Schemes can embed ESG principles through aligned policies, ESG-integrated guarantee design, risk-based application appraisal, and ongoing monitoring and evaluation. Drawing on Yemen’s experience, the session emphasized adaptive, context-sensitive approaches for responsible finance, especially in fragile and conflict-affected markets.
• The International Labour Organization, provided Credit Guarantee Institutions with practical guidance on integrating social factors—such as labour rights, job quality, and inclusivity—into their impact management, reinforcing the critical role of the social dimension in sustainable and inclusive finance.

Link to Prof. Ayadi’s statement

Link to Prof. Ayadi’s speech video

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Organised as a follow-up to the EMGN Spring Academy 2025, the session explored the critical yet often underutilised role of guarantee institutions in advancing sustainable development in the Southern and Eastern Mediterranean. The panel examined how guarantee schemes reduce investment risk, facilitate access to finance for SMEs, and promote alignment with Environmental, Social, and Governance (ESG) principles and the Sustainable Development Goals (SDGs).

Panelists included: Lasitha Perera, CEO, The Development Guarantee Group & Green Guarantee Company (UK); Amal Jaradat, Deputy Director General, Jordan Loan Guarantee Corporation (Jordan); Abdelmoughite Abdelmounem, Chief Strategy Officer, Tamwilcom (Morocco); and Almutasem Alkhateeb, Senior Business Development Specialist, Kalafah (Saudi Arabia).

The discussion offered actionable insights for entrepreneurs, policymakers, and financial institutions on designing inclusive financial tools that support green investment and social resilience in the region.

The UfM Digital Sustainable Week, organised by the Union for the Mediterranean (UfM) in collaboration with the German Development Cooperation, brought together regional stakeholders to explore the intersection of Artificial Intelligence, sustainable trade, and investment in fostering inclusive and green growth.

The EMGN Spring Academy 2025 was organised by the Euro-Mediterranean Guarantee Network (EMGN), led by 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 was hosted by the UfM as a side event to the UfM Digital Sustainable Week.

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It was 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 was hosted by CGC Egypt, a Credit Guarantee Company in Egypt, and a member of the EMGN Network.

The main aim of this academy was to enrich participants’ knowledge and share operational challenges & best practices among CGS (Credit Guarantee Schemes) to enhance their communication strategies towards stakeholders. This academy program prioritised peer-to-peer learning, with EMGN members exchanging methodologies and practices, and included presentations and roundtable discussions on common challenges such as raising awareness of their product among MSMEs, CGS relationships with banks, international development agencies and regulators.

The Academy opened with welcome addresses by Ms. Nagla Bahr CGC BoD Executive Board member and Chairwoman of EMGN and an introductory speech on the importance of good communication for Guarantee Funds by Prof. Rym Ayadi, Founder and President of the Euro-Mediterranean Economists Association (EMEA).

Prof. Rym Ayadi highlighted in her speech that “effective communication is the cornerstone of any successful guarantee scheme. By fostering transparency, simplifying access, building trust, and improving reporting these institutions can serve to empower MSMEs across the Mediterranean to unlock their full potential. EMGN stands at the forefront of this mission, bridging the knowledge gap and promoting cooperation across the region to ensure that no business is left behind.”

On-site were present 24 Members of EMGN, external participants, and associates including representatives for Tamwilcom Morocco, CGC Egypt, LGF Libya, JLGC Jordan, AECM Brussels, Kafalah Saudi Arabia, HDB Greece, CGCI Algeria, and guest speakers from GiZ and from Banque du Caire. Online where connected colleagues from the YLG Yemen Loan guarantee, and additional participants from CGC Egypt.

The Autumn Academy 2024 received remarkable ratings from its participants with an average overall score of the thematic session of 4.53/5, and an overall score of the organization of the academy of 4.67/5

The Autumn Academy 2024 closed with the concluding remarks and the presentation of participation certificates by Ms Nagla Bahr, CGC BoD Executive Board member of CGC Daman Egypt and Chairwoman of EMGN

Key highlights from the EMGN Autumn Academy 2024 training workshop:

• Several megatrends are shaping the future of communication including; digital transformation, sustainability and social responsibility, globalization, and data privacy. Credit guarantee institutions (CGIs) can adapt their communication strategies in response to the identified megatrends to effectively navigate the changing communication landscape and better serve their clients and stakeholders.
• Effective communication with SMEs requires a clear understanding of their unique barriers, such as limited financial literacy, access to information, and comprehension of available financial products. Tailored messaging should prioritize simplicity and actionable insights, clearly demonstrating how financial services and development initiatives can drive SME growth. Additionally, implementing adaptive strategies that incorporate feedback allows for ongoing refinement of communication efforts.
• Success stories and testimonials are essential for a value-based approach, illustrating how credit guarantee programs help businesses solve problems and achieve better results. They provide social proof and credibility, fostering trust while offering emotional appeal and inspiration. Additionally, these stories help overcome objections and reduce perceived risks by showcasing the real-life benefits and outcomes of these programs.
• Tamwilcom shared their good practice of communication strategy which involves collaborating with partner financial institutions to provide comprehensive information and training on products and procedures. Raising awareness among eligible beneficiaries about available guarantee and financing options. Additionally, supporting local institutional players further amplifies impact and fosters collaboration within the community.
• CGCI also shared their experience in enhancing communication with banking partners through modern digital channels. This includes providing real-time information on guarantee products, events, and news via a dedicated website, maintaining an active presence on social networks like Facebook and LinkedIn, and conducting targeted email campaigns with regular updates for partner banks.
• From the banks’ perspective, to enhance communication and collaboration, CGIs should consider utilizing digitized communication channels (such as digital platforms, big data, AI, and advanced data analytics), providing capacity-building for bank staff, simplifying their processes, and tailoring their products to current needs, including green finance and financing for women and youth.
• JLGC shared their experience collaborating with the Central Bank of Jordan, which contributed to the launch of several initiatives that enabled small and medium-sized companies to secure appropriate financing at lower costs and on favorable terms through various financing windows backed by JLGC guarantees.
• The future involves continued collaboration with international partners to create sustainable financing solutions that empower local businesses. However, both parties face several challenges, including differing terminology, lengthy processes, limited awareness, and regulatory barriers. To effectively communicate with development agencies, it’s essential to find common ground, use language that resonates with them, reach out to the appropriate contact person, present a compelling profile, and clearly define a specific goal.
• Finally, the academy participants were introduced to storytelling, which fosters emotional connections, simplifies complex information, engages stakeholders, and enhances message retention. It builds trust and credibility while making the institution’s vision and services more relatable to clients.

The EMGN Academy is promoted by the Euro-Mediterranean Economists Association (EMEA), the European Institute of the Mediterranean (IEMed) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). EMGN Academies are carried out as part of a project financed by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH 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 post EMGN Autumn Academy 2024 “Opening New Horizons for CGIs Through Communication,” completed: Key highlights from the event appeared first on EMGN.

The main aim of this academy was to share knowledge and good practices among Credit Guarantee schemes (CGSs) from South, East, and North Mediterranean partner countries on topics related to risk management, pricing, and accounting standards.

The Academy opened with welcome addresses by Prof. Rym Ayadi, President of the Euro-Mediterranean Economists Association – EMEA, and Mr. Hakim Hamdi, Deputy Director of the Société Tunisienne de Garantie, Sotugar, along with an introduction speech by the academy moderator Luc Morio, Partner at FINACTU Group.

Prof. Rym Ayadi highlighted in her speech that “in the realm of finance, transparency and accountability are the pillars that support sustainable growth. By embracing robust accounting practices and adhering to international standards like IFRS, we can build a foundation of trust and stability that empowers businesses and economies to thrive.”

On-site were present 25 Members of EMGN, external participants, and associates including representatives for Tamwilcom Morocco, Sotugar Tunisia, CGC Egypt, LGF Libya, JLGC Jordan, YLG Yemen, HDB Greece, and guests from Mazars Tunisia & Morocco, and BMICE Tunisia. Online where connected up to 45 individual members of EMGN institutions and guest speakers from the African Solidarity Fund (AFS)

The Spring Academy 2024 received remarkable ratings from its participants with an average overall score of the thematic session of 4.4/5, and an overall score of the organization of the academy of 4.85/5

The Spring Academy 2024 closed with the concluding remarks by Ms Nagla Bahr, Managing Director, CGC Egypt & EMGN Chairwoman.

Key highlights from the EMGN Spring Academy 2024 training workshop:

• Effective risk management and accounting transparency are essential for financial stability, which in turn fosters sustainable economic development.
• The Hellenic Development Bank (HDB) shared with peers their experience during Greece’s financial crisis, highlighting that the main challenges faced were funding disruptions, operational risks, and market risks. To overcome these challenges, it was key for HDB to implement proactive risk management, build trust and confidence, commit to safeguarding interests, adopt a comprehensive KYC process, and leverage data-driven decision-making.
• CGSs in the region identified their top risks as credit risk, political uncertainty, operational risk, and cash flow risk linked to reimbursement. Managing these risks effectively is crucial for CGSs to maintain financial sustainability. However, as impact-oriented institutions, they must strike a balance between mitigating risks and fulfilling their mandate of promoting access to finance and contributing to economic development with state support.
• CGSs use a variety of techniques to assess the evolution of risks such as credit scoring, stress-testing, and statistical and financial models.
• CGSs discussed their pricing methods, considering factors such as sources of funds, risk margin, and overheads and operational costs.
• A few years after COVID-19, it seems that CGSs portfolios remained relatively stable, largely due to state support.
• To improve relationships with banks, CGSs can leverage digitalization to enhance communication, accelerate processing time, and simplify requirements.
• Implementing IFRS 9 offers several benefits that can enhance financial reporting and overall financial management for CGSs. IFRS 9 can positively impact:
  • Classification and measurement
  • Forward-looking impairment models
  • Credit risk assessment
  • Dynamic hedge accounting
  • Clear disclosures
  • Consistency and comparability
  • Alignment with global standards
  • Support financial stability
• IFRS 9 implementation for CGSs involves challenges related to data collection of historical defaults and macroeconomic variables, sophisticated modelling to estimate ECL, IT systems and infrastructure, and technical expertise. Addressing these challenges requires careful planning, investment in systems and expertise, and ongoing management attention.

The EMGN Academy is promoted by the Euro-Mediterranean Economists Association (EMEA), the European Institute of the Mediterranean (IEMed) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). EMGN Academies are carried out as part of a project financed by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH 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 post <strong>EMGN Spring Academy 2024 training workshop “Risk Management, Pricing, and Accounting Standards” completed: Key highlights from the event</strong> appeared first on EMGN.

The Academy program delved into various facets of financial inclusion, including strategies to enhance access to finance for MSMEs, the gender dimension, the potential for a counter-guarantee scheme, and the need to measure financial and economic additionalities to assess the impact of CGSs. It also covered aspects of digitalisation by addressing challenges and showcasing success stories involving Fintech and RegTech, and encouraging peer-to-peer learning between credit guarantee institutions.

The Academy opened with welcome addresses by Prof. Rym Ayadi, President of the Euro-Mediterranean Economists Association – EMEA and Mr. Abdelmoughite Abdelmoumen, Chief Strategy officer at TAMWILCOM, and the introduction to the Academy by the event moderator, Jost Wagner, Managing Director of the Change Initiative.

Prof Ayadi underlined in her speech that “Credit guarantee schemes serve as a pivotal bridge in financial inclusion, offering a safety net that empowers lenders to extend their reach to previously underserved markets. When intertwined with digitalization, these schemes not only transcend traditional barriers but also foster an ecosystem where access to finance is no longer a privilege but a universal right. This synergy of guarantees and digital innovation heralds a new era of inclusive finance, where opportunities are democratically accessible, and economic growth is a shared journey, not a secluded destination.”

On-site were present 23 Members of EMGN and associates including representatives for Tamwilcom Morocco, Sotugar Tunisia, CGC Egypt, Jordan Loan Guarantee Corp as well as associates guarantee organisations from Kafalah Saudi Arabia, CGF Libya, and guest from AIS Group and GNGI. The Academy received an overall score of 4.5 out of 5 from participants, particularly highlighting the quality of peer-to-peer learning as well as the key insights and recommendations shared by the different speakers.

The Academy ended with final remarks by Ms. Nagla Bahr, Chairwomen of EMGN and CEO of CGC Egypt and the presentation of participation certificates for the Euro-Mediterranean Guarantee Network -EMGN Winter Academy 2024.

The Euro-Mediterranean Guarantee Network – EMGN is promoted by the Euro-Mediterranean Economists Association – EMEA, the European Institute of the Mediterranean (IEMED) and with the support of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

The Winter Academy of 2024 was organised by the Euro-Mediterranean Guarantee Network (EMGN), led by the Euro-Mediterranean Economists Association (EMEA) in collaboration with the European Institute of the Mediterranean (IEMED) , the Business School of Essex from the University of Essex and the Alliance for Financial Inclusion (AFI). It was hosted by Tamwilcom, a Credit Guarantee Company in Morocco, 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”.

Key highlights from the EMGN Winter Academy training workshop:

• The development of SMEs is key to absorbing the growing global workforce, and credit guarantee schemes can play a significant role in facilitating their development by fostering a more inclusive financial ecosystem particularly when making credit more accessible to underserved businesses e.g. run by women, minorities, and geographically underserved areas.
• Financial and economic additionality of CGSs should be systemically and periodically evaluated to ensure the reality of impact.
• Lack of access to finance impedes the growth of women-led MSMEs’, CGSs can foster their financial inclusion by providing an alternative source of collateral and targeted support.
• ENGZ, Egypt’s first direct digital guarantee product, has the potential to enhance the financial inclusion of SMEs through a smart and transparent digital platform that overcomes barriers related to banks’ risk aversion, lack of awareness, and complex procedures.
• The FinTech revolution impacted the financial sector in a number of ways; increasing efficiency, creating new investment opportunities, increasing competition, and improving regulatory activities. Additionally, this revolution has been accompanied by technology enabled innovation for regulatory purposes (RegTech) which has the potential to make compliance more effective.
• Digitizing SME finance and making use of transactional and alternative data offers an opportunity for addressing both the demand and supply sides of the access to finance problem.
• Utilizing digital technologies can impact credit guarantee schemes in several ways:
  ◦ Improve productivity
  ◦ Increase efficiency
  ◦ Raise visibility and awareness
  ◦ Enhance communication
  ◦ Develop innovative products
  ◦ Evaluate impact
  ◦ Facilitate training and capacitation
• CGSs shared their digital transformation projects, in particular, JLGC Jordan presented their journey from project governance, cultural change, enhancement of existing systems, to implementation of a business process management platform.

Link to the EMGN Winter Academy 2024 booklet

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Integral to the successful transition to a green economy in the Mediterranean is the question of financing. Traditional funding mechanisms often struggle to meet the unique needs of SMEs operating in the green sector. New financing schemes tailored to these enterprises play a pivotal role in overcoming this challenge.

Shifting towards sustainable practices and technologies requires significant investments, and innovative financial mechanisms for SMEs are essential to propel the Mediterranean region forward on this trajectory.

It is within this context that EMGN (the Euro-Mediterranean Guarantee Network) organizes its fourth annual conference “Assessing the Suitability of Traditional Guarantee Schemes to Drive the Growth of the Green Economy in the Mediterranean” to catalyze the progress. The conference will provide a platform for participants to delve into the perspectives regarding the significance of guarantee schemes in alleviating SME financing in the green economy. It aims to explore the readiness of guarantee institutions to navigate their extended roles, with a specific emphasis on green finance and the introduction of innovative equity products. This event serves as a crucial ground for stakeholders to exchange insights, strategies, and best practices in optimizing guarantee schemes to catalyze the growth of SMEs operating within the green economy, fostering a financial environment that aligns with sustainable practices.

The post EMGN Annual Conference 2023: “Assessing the Suitability of Traditional Guarantee Schemes to Drive the Growth of the Green Economy in the Mediterranean” – 17.01.2024 appeared first on EMGN.

The Winter Academy of 2024 is organised by the Euro-Mediterranean Guarantee Network (EMGN), led by the Euro-Mediterranean Economists Association (EMEA) in collaboration with  the European Institute of the Mediterranean (IEMED) , the Business School of Essex from the University of Essex  and the Alliance for Financial Inclusion (AFI). The Academy is hosted by Tamwilcom, a Credit Guarantee Company in Morocco, 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 Winter Academy 2024 booklet .pdf

The post <strong>EMGN Winter Academy 2024: Financial Inclusion and Digitalisation, 15 – 16 January 2024</strong> appeared first on EMGN.

The EMGN Autumn Academy 2023 took place back-to-back with the 7th International MENA Guarantee Conference “Guarantee Institutions: Decades of Activity; Realities and Challenges” which was organised by the Tunisian Guarantee Company Sotugar in collaboration with the Euro-Mediterranean Guarantee Network (EMGN) and the Arab Guarantee, and took place in Tunis, on 24 – 25 October 2023.

The main aim of this academy was to share knowledge and good practices among Credit Guarantee Institutions (CGI) from South, East, and North Mediterranean partner countries around two main topics; regulation and greening strategy for CGIs.

On-site were present 27 Members of EMGN and external participants and associates incliudeing representatives for Tamwilcom Morocco, Sotugar Tunisia, CGC Egypt, Kafalat Lebanon, CGCI Algeria, bpifrance, as well as associates guarantee organisations from Kafalah Saudi Arabia, AECM, and guests from CGF Libya, Expertise France, FGAR Algeria, YLG Yemen, Qatar Development Bank, and AIS Group.

The Academy opened with an introduction by Nagla Bahr, Managing Director of CGC Credit Guarantee Company in Egypt and Chairwoman of EMGN and a welcome speech by Tahar Ben Hatira, CEO of Sotugar, followed by a welcome Address by EMEA President Prof. Rym Ayadi and the introduction to the Academy by the event moderator, Jost Wagner, Managing Director of the Change Initiative.

The EMGN Academy is promoted by the Euro-Mediterranean Economists Association (EMEA), the European Institute of the Mediterranean (IEMed) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). The Autumn Academy, was organised by the Euro-Mediterranean Economists Association (EMEA), Co-hosted by Société tunisienne de Garantie (SOTUGAR)-Tunis, and facilitated by the Change Initiative.
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”.

Key highlights from the EMGN Autumn Academy training workshop:

• It is key for CGIs to consider the tradeoff between long-term viability and supporting the maximum number of SMEs. Key factors for CGIs risk management include; firm eligibility, coverage ratio, risk sharing order, leverage ratio, and financial sustainability.
• Measuring Key Risk Indicators aligned with regulation (Basel and IFRS9) help in decision-making to guarantee optimal leverage and thereby maximize financial and economic additionality of guarantee institutions.
• The CGSs have been introduced to the general treatment of financial guarantees under IFRS9 and the various categories of recognition and management.
• Financial institutions are legally required to comply with Anti-Money Laundering (AML) regulations and they usually employ a risk based approach to control for financial crimes and money laundering, which includes identifying high risk sectors, people, and countries. It is important for CGSs to understand their clients and comply with the due diligence standards to avoid legal and reputational issues.
• Balancing stability and sustainability in banking and guarantee schemes presents intricate trade-offs. Maintaining public trust through stability is vital, yet so is addressing environmental, social, and governance concerns to safeguard reputation and role in society.
• Guarantee institutions can play a significant role as catalysts for the sustainable transition, by facilitating environmentally responsible projects.
• Climate change in the Arab region is expected to have a significant impact on people and productive sectors. Hence, It is important to articulate climate finance needs and flows to Arab States in strategic sectors, which will identify climate finance gaps, challenges and where de-risking may assist to mobilize domestic and international resources.
• Selecting the right environmental Key Performance Indicators (KPIs) is a crucial step to accelerate green transition. The choice of these indicators demands careful consideration to strike a balance between providing meaningful insights without overwhelming reporting efforts and to prevent the proliferation of greenwashing.
• Funding projects associated with sustainable “transition” tends to be inherently more intricate compared to financing initiatives focused solely on climate change “mitigation”. Guarantee institutions play a pivotal role in bridging this complexity gap, thereby actively contributing to a more environmentally responsible future
• In today’s dynamic business landscape, Environmental, Social, and Governance (ESG) considerations are no longer optional; they are essential for long-term success and resilience. Hence, it is essential for CGSs to integrate ESG principles into their operations, and effectively communicate their efforts through reporting.
• CGSs can perform impact or additionality assessment in order to demonstrate that their intervention is both relevant and efficient.

The EMGN Autumn Academy 2023 reached an overall satisfaction of 4.5/5, and the topics presented by EMGN speakers received an average satisfaction rate of 4.1/5 from participants.

Link to EMGN Autumn Academy 2023 booklet

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