Financial support to MSMEs

© Clement Tardif

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 crisis

See and/or download documents

Presentation of Choose Africa Resilience guarantee by Xavier Echasseriau, Deputy Head “Guarantees for Development” at the Financial Institution & Inclusion division of Proparco
Presentation of Choose Africa Resilience guarantee by Xavier Echasseriau, Deputy Head “Guarantees for Development” at the Financial Institution & Inclusion division of Proparco
Bigot Flowers Kenya, Mitigating impacts from the Covid-19 pandemic
Bigot Flowers Kenya, Mitigating impacts from the Covid-19 pandemic
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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

Picto

  • 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

Picto

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

Picto

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.

© Anne-Laure Josserand for Proparco

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
1ABANBusiness angels networkNigeria, 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 CongoSeed financing, mentoringStart-ups techhttps://abanangels.org/
2Access Bank GhanaBankGhanaFinancial products and servicesMSMEshttps://www.ghana.accessbankplc.com/
3Access Bank NigeriaBankNigeriaFinancial products and servicesMSMEshttps://www.accessbankplc.com/
4Accion Quona Inclusion FundVenture capital FundEgypte, Kenya, Nigeria, Afrique du NordFinancial servicesFintech startups and MSMEshttps://quona.com/
5Accion Venture LabsPrivate Equity FundsSouth 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, ZimbabweEarly stage investment 200 - $500KFintech Startuphttps://www.accion.org/how-we-work/invest/accion-venture-lab
6ACEP CameroonMicrofinanceCameroonFinancial products and servicesMSMEs/microfinancehttp://acep-cameroun.org/
7ACEP NigerMicrofinanceNigerFinancial products and servicesMSMEs/microfinancehttp://www.ietp.com/fr/entreprises/acep-niger
8ACTIVA CameroonBankCameroonFinancial products and servicesMSMEshttps://activa-cameroun.com/index.php/fr/
9Adenia Capital IVPrivate Equity FundsGhana, Senegal, Nigeria, Burkina Faso, Madagascar, Guinea, MaliGrowth Capital 10 - €30MMSMEshttp://www.adenia.com/funds-and-investment
10ADP IIIPrivate Equity FundsAlgeria Botswana Burkina Faso Ivory Coast Ghana Kenya Morocco Mauritania Niger Nigeria Mozambique Namibia Uganda Tanzania Senegal Egypt Tunisia Multi-country AfricaGrowth Capital 20 - €100MMSMEshttps://amethis.com
Partner typeLocationwhat financing/services are available ?

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