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 funds that support African SMEs.

 

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_IDName of partnerPartner typeLocationwhat financing/services are available ?Eligible companiesContact
1Name of partnerPartner TypeLocationWhat financing/services are available?Eligible companieshttps://www.bondinnov.com/
2Bond’innovIncubatorFrance,AfricaSupport, financing, co-working spaces, networking, etc.Innovative start-ups/SMEs (health, biotechnology, environment, etc.)https://www.bondinnov.com/
3SaboutecIncubatorGuineaSupport, co-working spaces, networking, etc.Start-ups in the ICT sectorhttp://www.saboutech.org/
4Cipmen NigerIncubatorNigerSupport, co-working spaces, networking, etc.Start-upshttp://www.cipmen.org/
5CTIC DakarIncubatorSenegalSupport, guidance, co-working spaces, networking, etc.Start-ups in the ICT sectorhttp://cticdakar.com/fr_fr/
6La FabriqueIncubatorBurkina FasoSupport, co-working spaces, networking, etc.Social businesseshttps://www.lafabrique-bf.com/
7EtriLabs BéninIncubator/AcceleratorBeninSupport, co-working spaces, networking, etc.Start-upshttps://etrilabs.com/
8Innohub LimitedIncubator/AcceleratorGhanaSupport, co-working spaces, networking, etc.Start-upshttp://www.innohub.com.gh/
9MakeSense - DakarIncubatorSenegalSupport, training (design thinking, collective intelligence)SMEs/start-upshttps://africa.makesense.org/contact/
10NUMA MarocIncubatorMoroccoSupport, co-working spaces, networking, etc.Start-upshttps://www.numa.co/acceleration-startup-casablanca
Partner typeLocationwhat financing/services are available ?

Our news

Proparco and BICIS commit to Senegalese VSEs and SMEs affected...

Read more
April 14 2021

Proparco and COFINA strengthen their mobilization in favour of Senegalese...

Read more
March 30 2021

New partnership between Proparco and Société Générale Moçambique to support...

Read more
March 24 2021

Mali : with Proparco’s support, Banque Atlantique Mali is financing...

Read more
February 4 2021

Proparco is supporting ATL, a leasing company for Tunisian SMEs

Read more
January 25 2021

Nigeria: PROPARCO has allocated a guarantee to UBA to support...

Read more
January 21 2021

AFD Group provides a stronger response to Senegale’s MSMEs affected...

Read more
January 12 2021

AFD Group provides a stronger response to Madagascar’s MSMEs affected...

Read more
January 11 2021