Madagascar is the first country to benefit from loans guaranteed at 80% by AFD Group, made possible thanks to the resources specifically allocated by the French State in favor of MSMEs in Africa. The financing will be distributed by Société Générale Madagasikara to MSMEs affected by the crisis.
Proparco has signed a partnership with Société Générale Madagasikara that will enable the deployment of loans guaranteed by the AFD Group to MSMEs affected by the crisis.
A long-standing partner of the AFD Group and a key player in financing the private sector in Madagascar, Société Générale Madagasikara is the first financial institution to benefit from this exceptional guarantee.
After examining requests for financing, companies with less than 200 employees affected by the crisis may be granted 12 to 48 month loans by Société Générale Madagasikara. These loans, which may represent up to 3 months of 2019 turnover, will be 80% guaranteed by AFD Group.
This guarantee scheme, made possible thanks to the resources specifically allocated by the French governement to support MSMEs in Africa, is a key tool in the Resilience component of the French Choose Africa initiative. Unveiled on 30 November in response to the crisis, this Resilience component brings France’s commitment to entrepreneurs on the continent to 3.5 billion euros over the 2018-2022 period. Choose Africa mobilizes a wide range of tools: lines of credit, guarantees, equity investments, technical support, etc.
Supporting African small and medium enterprises, a major priority for AFD Group
More than 2 billion euros have already been deployed by the AFD Group as part of the French Choose Africa initiative. In Madagascar, more than 44 million euros have already been granted to local financial institutions in the form of guarantees and lines of credit for the benefit of more than a hundred MSMEs in the country. Several entrepreneurs with a strong social impact have also been directly supported by AFD Group within the framework of the Social & Inclusive Business Camp.
“The difficulties encountered by Malagasy entrepreneurs made it necessary to deploy new tailored tools that we are pleased to be able to deploy today in partnership with Société Générale Madagasikara. The diversity of the tools that we offer as part of the Choose Africa initiative demonstrates our desire to support the dynamism of entrepreneurs on this Big Island as effectively as possible, particularly in the current crisis” said Siby Diabira, Proparco’s Regional Director for Southern Africa.