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Following the signature of two ARIZ and EURIZ portfolio guarantees with Ecobank Côte d’Ivoire at the FIC Summit last October, AFD Group, via Proparco, is reiterating its support for the pan-African banking group. This first partnership between Proparco and Ecobank’s subsidiary in Senegal, in the form of two portfolio guarantees, ARIZ and EURIZ, will enable the bank to strengthen its financing activity for Very Small and Medium Enterprises (VSE) in the country.

Ecobank Senegal is a subsidiary of the pan-African banking group Ecobank Transnational Incorporated (ETI), a strategic partner of AFD Group with which Proparco has been collaborating for many years, notably through the granting of guarantees to several of its subsidiaries. Over the past 10 years, Proparco has granted several senior loans and acted as an anchor investor in ETI’s inaugural bond alongside the FMO. ETI is also the first partner of Proparco’s Trade Finance program, through several guarantee packages designed to cover the credit risk of four of its subsidiaries. This is Proparco’s first operation with the group’s Senegalese subsidiary, which today celebrates the signing of two portfolio guarantees, ARIZ and EURIZ, for €2 million and €4 million in XOF equivalent respectively.

By offering guarantees covering a significant fraction of the loans granted to their clients, ARIZ and EURIZ facilitate access to credit by reducing the risk taken by banks. This key tool of financial intermediation is particularly well suited to the specificities of the Senegalese economy.

The ARIZ portfolio guarantee, with 50% coverage, is one of AFD Group’s emblematic tools, particularly effective in encouraging investment and job creation in SMEs operating in many sectors of activity (agriculture, health, industry, microfinance, transport, etc.). The EURIZ guarantee, which is supported by the European Union and the African, Caribbean and Pacific Group of States (OACPS), will enable Ecobank Senegal to support investments by SMEs with a high developmental impact by sharing 70% of the credit risk. It specifically targets social sectors, agriculture, climate co-benefit investments, and women-owned or women-led businesses.

These loan offers guaranteed by Proparco are part of the French Choose Africa initiative, implemented by AFD Group, which aims to commit €3.5 billion to African start-ups, VSEs and SMEs over the 2018-2022 period.

With this partnership, Proparco wishes to support the financial inclusion of Senegalese entrepreneurs. This first collaboration with Ecobank Senegal will enable the bank to strengthen its activity in favor of SMEs and promote their access to financing,” said Pierre Maspoli, Head of Proparco in Senegal.

For Sahid Yallou, Managing Director of Ecobank Senegal, “supporting SMEs is a duty for any local bank. We are particularly proud to be able to count on our partner Proparco to bring flexibility and depth to our SME financing dynamics, especially for those run by women“.


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