Through an 80% guaranteed loan offer, Proparco is reaffirming its commitment to MSMEs affected by the Covid-19 crisis with the support of its financial partners.
The Choose Africa Resilience guarantee – or 80% guarantee – is a key tool in the new Resilience component of the French Choose Africa initiative. Made possible through resources specially allocated by the French government, this offer facilitates access to credit for entrepreneurs whose financial needs have increased due to the pandemic.
Following the analysis of financing requests by financial institution partners of Choose Africa, small and medium-sized enterprises (with less than 200 employees) can be allocated loans with an 80% guarantee from AFD Group.
A first progress report on the deployment of the Choose Africa Resilience guarantee since its launch in November 2020:
- In December 2020, Proparco allocated four 80% guarantees to four subsidiaries of Société Générale in Côte d’Ivoire, Cameroon, Senegal and Madagascar. They will enable the bank to strengthen its financing capacity for MSMEs in these countries.
As a major player in financing the private sector in these countries, Société Générale is the first of Proparco’s partners to deploy this new tool.
- In March 2021, Proparco continued its action for financial inclusion by allocating an 80% guarantee to the Senegalese branch of the pan-African mesofinance group Cofina.
Present in eight countries in West and Central Africa, Cofina is a key partner of AFD Group. The guarantee allocated by Proparco will enable Cofina Senegal to increase its financing capacity to support entrepreneurs in the formal and informal sectors.
- Recently, in April 2021, Proparco granted a Choose Africa Resilience guarantee to BICIS that will cover BICIS’ lending of XOF 1.25 billion (around EUR 1.9 million) to Senegalese small and medium-sized enterprises.
A longstanding partner of Proparco, over the last 15 years, BICIS has been one of the main beneficiaries of the risk-sharing mechanisms deployed by AFD Group.
- On 16 April, Proparco allocated an 80% guarantee to Société Générale-Congo. This portfolio guarantee will enable the bank to strengthen its financing capacity for MSMEs and will cover the allocation of loans to Congolese MSMEs for an amount of XOF 1.6 billion (around EUR 2.5 million).
- On 27 April, Proparco granted a Choose Africa Resilience guarantee to Société Générale Burkina Faso thereby accelerating its action to support enterprises affected by the Covid-19 crisis. This EUR 1.5 million guarantee will allow Société Générale Burkina Faso to offer loans to small and medium-sized enterprises with an 80% guarantee from AFD Group.
Societé Générale Burkina Faso is PROPARCO’s main and longstanding partner in the country.
- On 30 April, PROPARCO and NSIA Banque signed an 80% guarantee that will cover the bank’s lending for an amount of XOF 2.5 billion (around EUR 3.75 million) to support SMEs weakened by the crisis in Côte d’Ivoire.
NSIA Banque Côte d’Ivoire is one of the main financial institutions in Côte d’Ivoire, benefiting from recognized expertise in financing both agriculture and SMEs.
Support tailored to small and medium-sized enterprises central to AFD Group’s priorities
Choose Africa mobilizes a wide range of tools: credit lines, guarantees, equity investments, technical support, etc. AFD Group has already allocated EUR 2 billion since the launch of the Choose Africa initiative in 2018, thus providing support to more than 16,000 companies.
By mobilizing an additional EUR 1 billion under the Resilience component, Proparco is bringing the Choose Africa initiative up to EUR 3.5 billion over the 2018-2022 period.
The Resilience component is in line with the collective effort of 20 development banks to support MSMEs affected by the crisis announced during the 1st Finance in Common Summit in November 2020.
Presentation video of the CAR guarantee