Choose Africa Resilience: our response to the economic crisis triggered by Covid-19

© Clement Tardif

STRENGTHENING THE RESILIENCE OF BUSINESSES IN AFRICA

Microenterprises and SMEs in Africa have been hard hit by the economic consequences of the Covid-19 crisis. They are also exacerbating the problems they already had in accessing financing well before the crisis.

Despite the deterioration in the macroeconomic situation, PROPARCO has stepped up its action to support Africa’s private sector. Since March 2020, PROPARCO has been offering flexible solutions to its existing clients (deferred repayments, additional financing, etc.) to meet their most urgent needs.

Following on from this immediate response and working with our counterpart development banks, AFD Group is increasing its capacity to support businesses and private financial institutions operating in Africa. PROPARCO is adding a new component, Resilience, to the Choose Africa initiative with an additional budget of EUR 1bn. This mechanism comprises tools for loans, guarantees, equity investments and assistance tailored to the crisis situation.

Key figures

€

EUR 1bn

to support microenterprises/SMEs weakened by the crisis

See and/or download documents

Presentation of CHOOSE AFRICA Resilience garantee
Presentation of CHOOSE AFRICA Resilience garantee
Bigot Flowers Kenya, Mitigating impacts from the Covid-19 pandemic
Bigot Flowers Kenya, Mitigating impacts from the Covid-19 pandemic
See more documents
See less documents

OUR FINANCING AND ASSISTANCE SOLUTIONS

FINANCIAL SUPPORT TO MSMEs

Picto

AFD Group is deploying additional financing mechanisms to meet the financing requests of SMEs weakened by the crisis:

  • Guarantees to local partner banks (up to 80% of the risk borne by the banks) to encourage them to lend to MSMEs
  • Loans to financial institutions to help them meet business needs
  • Direct PROPARCO loans to companies

AFD Group will also be strengthening the capital base of companies via the FISEA+ facility or via funds that support African MSMEs.

 

SUPPORTING THE FINANCIAL INCLUSION SECTOR

Picto

Microfinance institutions (MFIs) play a crucial role in cushioning the economic and social impact of the crisis on entrepreneurs and the most vulnerable populations. AFD Group is supporting MFIs so that they can continue to lend to their clients via:

  • Loans to MFIs or banks operating in the microenterprise segment
  • Guarantees to MFIs to cover micro-loans to entrepreneurs, which are particularly vulnerable in times of crisis
  • Guarantees to local banks that finance MFIs to meet their liquidity requirements

In addition, equity investments may be considered to strengthen the financial inclusion sector, which has been weakened by the crisis.

 

TECHNICAL ASSISTANCE

Picto

PROPARCO will continue to deploy Technical Assistance (TA) programs for the beneficiary companies and partner institutions of Choose Africa Resilience. They will target their specific needs related to the management of the impacts of this crisis:

  • Specific assistance is offered in managing the crisis and adapting business models to this new economic environment. For example, special assistance can be given to financial institutions that want to increase the digitalization of their services, which will give more people access to them.
  • TA to support performance can address the need to strengthen the client’s organization or financial and administrative processes, its human resources department, or its market positioning. This technical assistance will in particular be given to players in financial inclusion or SMEs supported by our financial intermediaries.
  • Finally, PROPARCO will continue to encourage clients to adopt or strengthen sustainable and inclusive practices, in line with its usual standards for environmental risk management and the promotion of climate co-benefits and gender equality.

 

OUR LOCAL PARTNERS

 

Find out about partner funds, financial institutions and incubators close to you, supported by AFD Group.

wdt_ID Name of partner Partner type Location what financing/services are available ? Eligible companies Contact
1 ABAN Business angels network Nigeria, Cameroon, Côte d'Ivoire, Egypt, Kenya, Algeria, Madagascar, Morocco, Senegal, Uganda, South Africa, Mauritius, Tunisia, Ghana, Chad, Ethiopia, Mozambique, Democratic Republic of Congo, Liberia, Botswana, Namibia, Gabon, Malawi, Gambia, Benin, Mali, Burkina Faso, Republic of Congo Seed financing, mentoring Start-ups tech https://abanangels.org/
2 Access Bank Ghana Bank Ghana Financial products and services MSMEs https://www.ghana.accessbankplc.com/
3 Access Bank Nigeria Bank Nigeria Financial products and services MSMEs https://www.accessbankplc.com/
4 Accion Quona Inclusion Fund Venture capital Fund Egypte, Kenya, Nigeria, Afrique du Nord Financial services Fintech startups and MSMEs https://quona.com/
5 Accion Venture Labs Private Equity Funds South Africa, Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Comoros, Congo, Democratic Republic of Congo, Côte d'Ivoire, Djibouti, Egypt, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Equatorial Guinea, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Morocco, Mauritius, Mauritania, Mozambique, Namibia, Niger, Nigeria, Uganda, Rwanda, São Tomé and -Prince, Senegal, Seychelles, Sierra Leone, Somalia, Sudan, South Sudan, Swaziland, Tanzania, Chad, Togo, Tunisia, Zambia, Zimbabwe Early stage investment 200 - $500K Fintech Startup https://www.accion.org/how-we-work/invest/accion-venture-lab
6 ACEP Cameroon Microfinance Cameroon Financial products and services MSMEs/microfinance http://acep-cameroun.org/
7 ACEP Niger Microfinance Niger Financial products and services MSMEs/microfinance http://www.ietp.com/fr/entreprises/acep-niger
8 ACTIVA Cameroon Bank Cameroon Financial products and services MSMEs https://activa-cameroun.com/index.php/fr/
9 Adenia Capital IV Private Equity Funds Ghana, Senegal, Nigeria, Burkina Faso, Madagascar, Guinea, Mali Growth Capital 10 - €30M MSMEs http://www.adenia.com/funds-and-investment
10 ADP III Private Equity Funds Algeria Botswana Burkina Faso Ivory Coast Ghana Kenya Morocco Mauritania Niger Nigeria Mozambique Namibia Uganda Tanzania Senegal Egypt Tunisia Multi-country Africa Growth Capital 20 - €100M MSMEs https://amethis.com
Location

Our news

Anka secures US$5M funding to export Africa

Read more
September 19 2023

Joliba Capital, a new investment fund for startups in Western...

Read more
September 19 2023

Proparco and Equity BCDC renew their support for SMEs in...

Read more
July 5 2023

In Côte d’Ivoire, Advans supports small corn producers, with support...

Read more
June 9 2023

Proparco Supports Egypt’s Startups with Investment in DisrupTech Ventures

Read more
May 4 2023

Proparco takes a stake in Nuru, which develops urban solar...

Read more
March 3 2023

Team Europe FMO and Proparco support Tanzanian private sector growth...

Read more
February 24 2023

Proparco and Ecobank Senegal collaborate to strengthen access to financing...

Read more
November 17 2022