SUPPORTING SME RECOVERY IN AFRICA
Through the Choose Africa initiative, AFD Group is a partner of around two hundred financial institutions that supply local economies and African SMEs. In the current context, these SMEs have substantial cash flow requirements. To maintain jobs and the contribution that these businesses make to local economies, it is important for them to be offered financing solutions via local financial systems. PROPARCO is contributing to this effort by allocating additional financing (loans, guarantees or equity investments).
Key figures
EUR 1bn
to support microenterprises/SMEs weakened by the crisisSee and/or download documents
OUR FINANCING SOLUTIONS
GUARANTEES TO ENCOURAGE LOCAL BANKS TO LEND TO MSMEs
As with the State-Guaranteed Loan (PGE) initiative implemented in France, the mechanism deployed by AFD Group with resources from the French State will contribute to maintaining the economic activity and staff of MSMEs in geographical areas where the business support measures are insufficient or non-existent.
Two new one-off guarantee schemes available until the end of 2021 will be set up:
- “Choose Africa Resilience Guarantee”: guarantees allocated to local banks to cover loans to MSMEs with a maturity ranging between 1 and 4 years. These loans will be guaranteed by AFD Group for up to 80% of the risk borne by the banks
- “Short-term Guarantee”: guarantees allocated to local banks to cover loans to MSMEs with a maturity of less than 1 year. These loans will be guaranteed by AFD Group for up to 50% of the risk borne by the banks
CREDIT LINES TO LOCAL FINANCIAL INSTITUTIONS
- PROPARCO offers lending solutions to African financial institutions to help them address the needs generated by the crisis
- The aim of these credit lines is to allow these intermediaries to support SMEs through the deferment of repayments, restructuring, bridge financing and recovery loans (restocking, etc.)
- The main selection criteria for partners are as follows:
- Leading financial institutions able to meet the needs of SMEs affected by the crisis,
- Financial institutions whose financial situation remains healthy and are able to cope with a deterioration in economic conditions,
- Partners playing an active role in the response to the crisis and whose action is complementary to the action of governments,
- Partners able to report on business support measures.
DIRECT PROPARCO LOANS TO COMPANIES
Direct PROPARCO loans will be allocated to larger SMEs operating in key sectors of the local economy (agriculture and agribusiness, health, education, tourism…) affected by the crisis.
PRIVATE EQUITY
AFD Group, via PROPARCO and FISEA+ facility, is providing African SMEs with equity directly or through partner investment funds. AFD Group’s objective is to ensure the sustainability of companies which had a sound economic model before the crisis and whose balance sheets and operational indicators have deteriorated.
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 |