Proparco. Booklet : our financing solutions for the private sector in Africa

SECTOR

Proparco is the private sector financing arm of Agence Française de Développement Group (AFD Group). It has been promoting sustainable economic, social and environmental development for 45 years. Proparco provides funding and support to both businesses and financial institutions in developing and emerging countries. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education.

operations aim to strengthen the contribution of private players to the achievement of the Sustainable Development Goals (SDGs) adopted by the international community in 2015. To this end, Proparco finances companies whose activity contributes to creating jobs and decent incomes, providing essential goods and services and combating climate change.

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French Choose Africa

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PROPARCO'S

African

Since the launch of the Choose Africa initiative in 2019, AFD Group has been mobilized to support start-ups and MSMEs in Africa, which are real pillars of the African economy. In response to the crisis triggered by Covid-19, it has stepped up its action by deploying a new component of the initiative: Choose Africa Resilience, with an additional €1BN. The Choose Africa commitment, which was initially set at €2.5BN for 2018-2022, now stands at €3.5BN

AFD Group has already committed €3BN, which will benefit over 26,000 companies and tens of thousands of entrepreneurs across the continent.

This Resilience component is France’s contribution to the $4BN commitment made by some 20 Public Development Banks, including Proparco , during the first Finance in Common Summit organized in November 2020 at the initiative of AFD

ENGAGING OUR CLIENTS TOWARDS MORE IMPACTS AND INNOVATIONS

FOCUS ON SOME PROJECTS

BANKS AND FINANCIAL SERVICES Nigeria

Supporting financing for high-impact SMEs

First City Monument Bank (FCMB) is the 3rd main operator in the SME segment on Nigeria’s banking market. With an extensive range of digital products, the bank is well positioned to offer financing solutions tailored to these companies. Proparco’s operation is allowing FCMB to strengthen its position in two of its priority segments: high-impact SMEs and support for companies owned by women. It is helping to support financing for some 1,600 SMEs and the growth of over 300 SMEs managed or owned by women. Part of the funds is dedicated to financing projects with climate co-benefits.

$5M

HEALTH, EDUCATION, AGRICULTURE

Central Africa / Democratic Republic of the Congo (DRC)

An impact fund to support MSMEs

African Rivers Fund (ARF) finances MSMEs, mainly in DRC.

It is very active in the development of the local economy and provides entrepreneurs, who are often from disadvantaged backgrounds, with access to capital in the key sectors of health, education and agriculture. It aims to expand to Uganda, Congo and Burundi. The support to ARF has created approximately 1500 jobs.

$10M

Loan SERVICES, SUPPORT FOR SMES

South Africa

Improving minibus services

70% of business and school travel in South Africa is made on 16-seater minibus taxis. SA Taxi offers financing to SMEs that have a fleet of minibus taxis. Proparco’s loan in local currency will allow it to develop and put into service new and safer vehicles for the millions of passengers who use these minibuses every day. Some 360 SMEs will be supported, providing 650 direct jobs. This operation is fully in line with the Choose Africa initiative.

ENERGY AND CLIMATE

$136M

Solar Feed in Tariff - Benban Solar Power Plant

The project is financing the construction and operation of five solar power plants on the Benban complex in Aswan Governorate. It is part of the Solar Feed in Tariff program (total capacity of 125 MW). It ultimately aims to improve the power grid and reduce annual CO2 emissions by 148.8 kT. It is contributing to the creation of 7,100 jobs.

AGRICULTURE - AGRIBUSINESS Uganda

$20M

Producing electricity from sugarcane residue

This loan allocated to Scoul, the 3rd largest sugar producer in Uganda, is financing the construction of its 26 MW cogeneration unit fueled by the bagasse (sugarcane residue). The electricity produced will be used in Scoul’s industrial process and part of it will be sold on the national grid. In a country where the electrification rate is low and electricity consumption is one of the lowest in Africa, some 110 GWh of renewable energy should be injected into the national grid and provide access to electricity to 1.5 million Ugandans.

$0.4M

Equity investment START-UPS AND DIGITAL TECHNOLOGIES Kenya Supporting start-ups

MSurvey is a start-up specialized in the real-time monitoring of consumer opinions. It allows African companies, universities, hospitals and the media to directly question African citizens and consumers about their habits or their needs via their mobile phone. Proparco’s investment, alongside the TIDE Africa fund, is assisting MSurvey with its transformation towards becoming a pan-African player. Proparco is thereby supporting the development of an innovative start-up that offers a previously nonexistent range of digital services tailored to the African context.

Increasing financial inclusion for rural communities in Zambia

AB Bank Zambia is the only bank which finances SMEs and microentrepreneurs in Zambia. In 2019, with Choose Africa via the FISEA facility managed by Proparco, €1.8M were invested in the capital of the bank and €180,000 of technical assistance have helped introduce digital loan and savings products for rural people. Through the mobile digital platform, eTumba, the objective is to increase financial inclusion for rural communities far from physical branches, especially women, and create intuitive products tailored to the needs of the target populations.

AFD Group

investment

Africa

ACCRA

NORTH AFRICA REGIONAL OFFICE

CASABLANCA Villa 12, rue Bab El Irfane 20130 Casablanca, MOROCCO afdcasablanca@afd.fr

LOCAL BRANCHES

CAIRO 10 Sri Lanka St. Zamalek Cairo, EGYPT Tél: 00 (20) 2 27 35 17 88 afdlecaire@afd.fr

TUNIS Rue du Lac Windermere, 1053 Les Berges du Lac Tunis, TUNISIA afdtunis@afd.fr

PROPARCO

OUR ACTION

OUR MANDAT

SOUTHERN AFRICA AND INDIAN OCEAN REGIONAL OFFICE

JOHANNESBURG

P.O. Box 130067

2021, SOUTH AFRICA

LOCAL BRANCH

ANTANANARIVO

rue Razanakombana Ambohijatovo

557 101 Antananarivo MADAGASCAR

NIGERIA REGIONAL OFFICE

LAGOS

Consulate General of France

Oyinkan Abayomi Drive Ikoyi, Lagos, NIGERIA

STRENGTHS

NAIROBI

Plaza Building, Kindaruma Road, Off Ngong Rd P.O. BOX 45955 - 00100 Nairobi,

CENTRAL AFRICA REGIONAL OFFICE

DOUALA BP 2283 Douala, CAMEROON proparcodouala@proparco.fr

LOCAL BRANCH

KINSHASA

avenue du Comité urbain Kinshasa Gombe Kinshasa, DRC afdkinshasa@afd.fr

Proparco

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du monde, James Keogh

Chiara Frisone

Clément Tardif,