THE PRIVATE SECTOR, AN ESSENTIAL DRIVER OF ECONOMIC GROWTH
OUR STRATEGY OUR AMBITION FOR 2020
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
JOBS
Proparco has sustained the momentum for the fifth year in a row, growing by 21% approving financing of close to €1.5 billion for businesses and financial institutions operating in developing and emerging economies. Those organizations are taking action in increasing numbers to meet the needs of developing countries. Furthermore, they are doing so in sectors that currently drive economic growth, including energy production, most notably from renewable sources, agribusiness, freight and passenger transport, financial services, healthcare and education.
1.7m direct and indirect jobs support for per year
CLIMATE
15m teq CO
2 avoided per year
2020: €2bn per year
PROPARCO COMMITMENTS
x2
CLIENTS IMPACTS
x3
2015: €1.05bn per year
SERVICES
EDUCATION, HEALTHCARE, ENERGY INFRASTRUCTURE
12m theoretical people
with access to essential goods and services per year
FINANCING APPROVALS
ASSISTANCE TO BUSINESSES
SDG
INNOVATION
45 innovative programmes
per year targeting vulnerable population groups
Climate
€2bn
devoted to programs that move forward the fight against climate change
INNOVATION
Mobilizing resources to maximize impact
In addition to financing, Proparco’s role also involves encouraging the emergence of socially responsible, innovative business people and financial service providers in developing and emerging economies. This means helping its clients improve their environmental and social performance and their governance. Moreover, to achieve its aims, Proparco takes a broad-based approach to governance. Alongside majority shareholder AFD, public and private sector financial institutions from France, Africa, and Latin America, service providers, industrial firms in countries where Proparco operates and ethical funds and foundations are all part of its governing bodies.
120
CSR
180
Customers
assisted with improving their environmental and social performance, above all through our technical assistance offer
Projects financed over the period
Additional third-party resources
€1bn
mobilized by Proparco
Fragile States
€1bn
dedicated to least advanced, low-income, transition or post-crisis countries
Equity and similar instruments totalling
€1.5bn
151, rue Saint-Honoré – 75001 Paris Tel. : +33 1 53 44 31 08 www.proparco.fr blog.private-sector-and-development.com
September 2017 - © Proparco. All rights reserved Production - 40 years visual : Entrecom - Photos : ©Oriane Zerah ©Sébastien Rieussec ©Clement Tardif This report has been printed on recycled paper using vegetal and non-mineral inks.
€2.7bn
Proparco ranks today among Europe’s foremost development financing institutions, often conducting joint projects with its counterparts. Its work focuses on sectors that are crucial to development, such as infrastructure – with emphasis on renewable energy – agribusiness, finance, healthcare and education. Through the support it provides, Proparco contributes to job creation, the supply of essential goods and services and more broadly to the reduction of poverty and climate change mitigation.
Innovation
Africa
in financing dedicated to the continent
Proparco, a subsidiary of Agence Française de Développement (AFD) devoted to private sector financing, has been acting to promote sustainable development for 40 years. In 80 countries spanning Africa, Asia, Latin America and the Middle East, Proparco provides funding and assistance to businesses and financial institutions.
RESOURCES
EXPERTISE
CONSOLIDATION
OUR RESOURCES 2017-2020
Supporting innovative projects aimed at vulnerable population groups
FROM 2015
FROM 2015
by Proparco on environmental, social and governance issues
Strengthening our role as providers of expert assistance to our customers
+74%
+21%
SDG
180 companies assisted
Stepping up our work in areas of key importance to development
ONGOING CLIMATE COMMITMENT
(in €m)
KEY FIGURES
€504m
2014
2015
2016
1,066 1,054 1,279
EQUAL TO 39% OF ALL FUNDING (excluding FISEA)
will go to projects with a positive impact on climate change (e.g., renewable energy, energy efficiency).
AFRICA AS PRIORITY FOCUS
€509m
OF ALL FINANCING APPROVALS IN AFRICA
on behalf of the AFD Group in the form of loans, grants, equity investments and guarantees for countries and private enterprise.
RECORD USE OF EQUITY AND SIMILAR INSTRUMENTS
€177m
EQUAL TO 19% OF OUR FUNDING
+54% FROM 2015
invested in equity, quasi-equity and subordinated loans to strengthen and support the growth of private companies operating in developing and emerging economies.
2 million
PEOPLE WILL BE MICROCREDIT BENEFICIARIES
PARTNERING TO ACHIEVE GREATER LEVERAGE
22%
OF ALL FUNDING
provided through co-financing arrangements with our fellow EDFIs – Germany’s DEG and the Netherlands’ FMO – totalling over €1bn.
THE PRIVATE SECTOR, AN ESSENTIAL DRIVER OF ECONOMIC GROWTH
OUR STRATEGY OUR AMBITION FOR 2020
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
JOBS
Proparco has sustained the momentum for the fifth year in a row, growing by 21% approving financing of close to €1.5 billion for businesses and financial institutions operating in developing and emerging economies. Those organizations are taking action in increasing numbers to meet the needs of developing countries. Furthermore, they are doing so in sectors that currently drive economic growth, including energy production, most notably from renewable sources, agribusiness, freight and passenger transport, financial services, healthcare and education.
1.7m direct and indirect jobs support for per year
CLIMATE
15m teq CO
2 avoided per year
2020: €2bn per year
PROPARCO COMMITMENTS
x2
CLIENTS IMPACTS
x3
2015: €1.05bn per year
SERVICES
EDUCATION, HEALTHCARE, ENERGY INFRASTRUCTURE
12m theoretical people
with access to essential goods and services per year
FINANCING APPROVALS
ASSISTANCE TO BUSINESSES
SDG
INNOVATION
45 innovative programmes
per year targeting vulnerable population groups
Climate
€2bn
devoted to programs that move forward the fight against climate change
INNOVATION
Mobilizing resources to maximize impact
In addition to financing, Proparco’s role also involves encouraging the emergence of socially responsible, innovative business people and financial service providers in developing and emerging economies. This means helping its clients improve their environmental and social performance and their governance. Moreover, to achieve its aims, Proparco takes a broad-based approach to governance. Alongside majority shareholder AFD, public and private sector financial institutions from France, Africa, and Latin America, service providers, industrial firms in countries where Proparco operates and ethical funds and foundations are all part of its governing bodies.
120
CSR
180
Customers
assisted with improving their environmental and social performance, above all through our technical assistance offer
Projects financed over the period
Additional third-party resources
€1bn
mobilized by Proparco
Fragile States
€1bn
dedicated to least advanced, low-income, transition or post-crisis countries
Equity and similar instruments totalling
€1.5bn
151, rue Saint-Honoré – 75001 Paris Tel. : +33 1 53 44 31 08 www.proparco.fr blog.private-sector-and-development.com
September 2017 - © Proparco. All rights reserved Production - 40 years visual : Entrecom - Photos : ©Oriane Zerah ©Sébastien Rieussec ©Clement Tardif This report has been printed on recycled paper using vegetal and non-mineral inks.
€2.7bn
Proparco ranks today among Europe’s foremost development financing institutions, often conducting joint projects with its counterparts. Its work focuses on sectors that are crucial to development, such as infrastructure – with emphasis on renewable energy – agribusiness, finance, healthcare and education. Through the support it provides, Proparco contributes to job creation, the supply of essential goods and services and more broadly to the reduction of poverty and climate change mitigation.
Innovation
Africa
in financing dedicated to the continent
Proparco, a subsidiary of Agence Française de Développement (AFD) devoted to private sector financing, has been acting to promote sustainable development for 40 years. In 80 countries spanning Africa, Asia, Latin America and the Middle East, Proparco provides funding and assistance to businesses and financial institutions.
RESOURCES
EXPERTISE
CONSOLIDATION
OUR RESOURCES 2017-2020
Supporting innovative projects aimed at vulnerable population groups
FROM 2015
FROM 2015
by Proparco on environmental, social and governance issues
Strengthening our role as providers of expert assistance to our customers
+74%
+21%
SDG
180 companies assisted
Stepping up our work in areas of key importance to development
ONGOING CLIMATE COMMITMENT
(in €m)
KEY FIGURES
€504m
2014
2015
2016
1,066 1,054 1,279
EQUAL TO 39% OF ALL FUNDING (excluding FISEA)
will go to projects with a positive impact on climate change (e.g., renewable energy, energy efficiency).
AFRICA AS PRIORITY FOCUS
€509m
OF ALL FINANCING APPROVALS IN AFRICA
on behalf of the AFD Group in the form of loans, grants, equity investments and guarantees for countries and private enterprise.
RECORD USE OF EQUITY AND SIMILAR INSTRUMENTS
€177m
EQUAL TO 19% OF OUR FUNDING
+54% FROM 2015
invested in equity, quasi-equity and subordinated loans to strengthen and support the growth of private companies operating in developing and emerging economies.
2 million
PEOPLE WILL BE MICROCREDIT BENEFICIARIES
PARTNERING TO ACHIEVE GREATER LEVERAGE
22%
OF ALL FUNDING
provided through co-financing arrangements with our fellow EDFIs – Germany’s DEG and the Netherlands’ FMO – totalling over €1bn.
THE PRIVATE SECTOR, AN ESSENTIAL DRIVER OF ECONOMIC GROWTH
OUR STRATEGY OUR AMBITION FOR 2020
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
JOBS
Proparco has sustained the momentum for the fifth year in a row, growing by 21% approving financing of close to €1.5 billion for businesses and financial institutions operating in developing and emerging economies. Those organizations are taking action in increasing numbers to meet the needs of developing countries. Furthermore, they are doing so in sectors that currently drive economic growth, including energy production, most notably from renewable sources, agribusiness, freight and passenger transport, financial services, healthcare and education.
1.7m direct and indirect jobs support for per year
CLIMATE
15m teq CO
2 avoided per year
2020: €2bn per year
PROPARCO COMMITMENTS
x2
CLIENTS IMPACTS
x3
2015: €1.05bn per year
SERVICES
EDUCATION, HEALTHCARE, ENERGY INFRASTRUCTURE
12m theoretical people
with access to essential goods and services per year
FINANCING APPROVALS
ASSISTANCE TO BUSINESSES
SDG
INNOVATION
45 innovative programmes
per year targeting vulnerable population groups
Climate
€2bn
devoted to programs that move forward the fight against climate change
INNOVATION
Mobilizing resources to maximize impact
In addition to financing, Proparco’s role also involves encouraging the emergence of socially responsible, innovative business people and financial service providers in developing and emerging economies. This means helping its clients improve their environmental and social performance and their governance. Moreover, to achieve its aims, Proparco takes a broad-based approach to governance. Alongside majority shareholder AFD, public and private sector financial institutions from France, Africa, and Latin America, service providers, industrial firms in countries where Proparco operates and ethical funds and foundations are all part of its governing bodies.
120
CSR
180
Customers
assisted with improving their environmental and social performance, above all through our technical assistance offer
Projects financed over the period
Additional third-party resources
€1bn
mobilized by Proparco
Fragile States
€1bn
dedicated to least advanced, low-income, transition or post-crisis countries
Equity and similar instruments totalling
€1.5bn
151, rue Saint-Honoré – 75001 Paris Tel. : +33 1 53 44 31 08 www.proparco.fr blog.private-sector-and-development.com
September 2017 - © Proparco. All rights reserved Production - 40 years visual : Entrecom - Photos : ©Oriane Zerah ©Sébastien Rieussec ©Clement Tardif This report has been printed on recycled paper using vegetal and non-mineral inks.
€2.7bn
Proparco ranks today among Europe’s foremost development financing institutions, often conducting joint projects with its counterparts. Its work focuses on sectors that are crucial to development, such as infrastructure – with emphasis on renewable energy – agribusiness, finance, healthcare and education. Through the support it provides, Proparco contributes to job creation, the supply of essential goods and services and more broadly to the reduction of poverty and climate change mitigation.
Innovation
Africa
in financing dedicated to the continent
Proparco, a subsidiary of Agence Française de Développement (AFD) devoted to private sector financing, has been acting to promote sustainable development for 40 years. In 80 countries spanning Africa, Asia, Latin America and the Middle East, Proparco provides funding and assistance to businesses and financial institutions.
RESOURCES
EXPERTISE
CONSOLIDATION
OUR RESOURCES 2017-2020
Supporting innovative projects aimed at vulnerable population groups
FROM 2015
FROM 2015
by Proparco on environmental, social and governance issues
Strengthening our role as providers of expert assistance to our customers
+74%
+21%
SDG
180 companies assisted
Stepping up our work in areas of key importance to development
ONGOING CLIMATE COMMITMENT
(in €m)
KEY FIGURES
€504m
2014
2015
2016
1,066 1,054 1,279
EQUAL TO 39% OF ALL FUNDING (excluding FISEA)
will go to projects with a positive impact on climate change (e.g., renewable energy, energy efficiency).
AFRICA AS PRIORITY FOCUS
€509m
OF ALL FINANCING APPROVALS IN AFRICA
on behalf of the AFD Group in the form of loans, grants, equity investments and guarantees for countries and private enterprise.
RECORD USE OF EQUITY AND SIMILAR INSTRUMENTS
€177m
EQUAL TO 19% OF OUR FUNDING
+54% FROM 2015
invested in equity, quasi-equity and subordinated loans to strengthen and support the growth of private companies operating in developing and emerging economies.
2 million
PEOPLE WILL BE MICROCREDIT BENEFICIARIES
PARTNERING TO ACHIEVE GREATER LEVERAGE
22%
OF ALL FUNDING
provided through co-financing arrangements with our fellow EDFIs – Germany’s DEG and the Netherlands’ FMO – totalling over €1bn.
NEW COMMITMENTS AT DECEMBER 31 €923m
60
ST
, 2016
countries
Microfinance
BEIJING China
41% (€379m)
Financial institutions and markets**
by instrument (% of new commitments) Loans
83% (€771m)
Equity interests
16% (€151m)
Guarantees
0% (€0m)
Other instruments
0.2% (€2m)
10
NEW DELHI South Asia
OUTSTANDING AMOUNTS
5
ABIDJAN West Africa
at Dec. 31, 2016 (excluding FISEA)
by sector (% of total)
6
7
€135m in new commitments
SAO PAULO South America
Energy infrastructure*
JOHANNESBURG Southern Africa and Indian Ocean
€1.671m
Industry
Miscellaneous and multi-sector
6% (€290m)
1% (€35m)
89% (€4,280m)
ASIA
Microfinance
Equity interests
10% (€464m)
Guarantees
1% (€31m)
Other instruments
1% (€34m)
€133m in new commitments
€802m
in outstanding amounts
in outstanding amounts
Branch offices
CLIMATE AND ENERGY
JOBS
14% (€651m)
by instrument (% of total)
€331m in new commitments Our 11 offices and the regions they cover
Agriculture and agribusiness
Healthcare and education
SUB-SAHARAN AFRICA
€308m in new commitments
7% (€323m)
2% (€81m)
Loans
MEDITERRANEAN AND THE MIDDLE EAST
Total €4,810m
24% (€1,148m)
8
DOUALA Central Africa
2
Financial institutions and markets**
Telecoms
BANGKOK North and Southeast Asia
NAIROBI East Africa
46% (€2,199m)
2% (€83m)
11
9
LAGOS Nigeria
LATIN AMERICA AND THE CARIBBEAN
OUR IMPACT IN 2016
Total €923m
25% (€229m) Miscellaneous and multi-sector Energy infrastructure*
MEXICO Central America and the Carribean
in outstanding amounts
Agriculture and agribusiness
17% (€154m)
1
€995m
4% (€36m)
2% (€16m)
3
in outstanding amounts
Telecoms
Healthcare and education
SANTO DOMINGO Dominican Republic & Haiti
€1.115m
4% (€34m)
8% (€74m)
PARIS PROPARCO Headquarters
CASABLANCA North Africa
COMMITMENTS IN 2016
at Dec. 31, 2016 (excluding FISEA)
by sector (% of total)
ISTANBUL Turkey and Middle East, Central Asia, Caucasus, Southeast Europe
38
projects
NEW COMMITMENTS
4
AFRICA
(in €m)
732,000
47%
680,500 teq CO
direct jobs created or maintained at Proparco-financed banks, businesses and infrastructure operators
indirect jobs created or maintained among their value chain
Women make up 47% of the workforce at Proparco-financed banks, businesses, infrastructure operators and investment funds
will be avoided per year thanks to 17 climate projects
2
(in €m)
MULTI-COUNTRY
(in €m)
Multi-country
Equity investment in renewable energy production
Energy RE
15
South Africa
Senior line of credit
Banking
28.5
Armenia
Support to strengthen a local bank
Banking
19
Benin
Long-term funding support
Banking
15
Bangladesh
Support to strengthen a local bank
Banking
15.2
Burkina Faso Senior line of credit
Banking
15
Bangladesh
Funding for fruit juice production
Agribusiness
7.6
Multi-country
Finance
1.7
Cameroon
Support to strengthen bank structure
Banking
20
Equity investment in a private equity fund
Myanmar
Funding for telecom tower construction
Telecoms
7.6
Ivory Coast
Funding for Abidjan Airport
Transport
13
Cambodia
Funding and technical assistance
Microfinance
5.7
Multi-country EAF***
Equity investment in an insurance company
Banking
10
Gabon
Rail track rehabilitation
Transport
16.3
Cambodia
Microfinance funding
Microfinance
9.5
Ghana
Funding for a mortgage lending company
Banking
2.6
Multi-country EAF
Finance
14.2
Georgia
Healthcare investment programme
Healthcare
14.2
Equity investment in a fund dedicated to SME development
Guinea
Funding for a hotel chain
Tourism
2.6
Georgia
Healthcare investment programme
Healthcare
9.5
Multi-country EAF
Multi-sector
4.7
Kenya
Funding for a geothermal power plant
Energy RE*
2.1
Equity investment in a microfinance investment fund
Mauritius
Support to strengthen capital base
Banking
10
India
Equity investment (financial inclusion and social welfare)
Private equity
7.6
Multi-country WAF***
Capital raising for a startup
Services
0.9
Niger
Telecom tower acquisition
Infrastructures
12.5
India
Solar power facilities funding
Energy RE
Niger
Telecom tower acquisition
Infrastructures
14
India
Investment in microfinance institution
Banking
Multi-country WAF
Equity investment in a pan-African investment fund
Multi-sector
5
Nigeria
Investment in a fertilizer company
Agribusiness
19
India
Funding for a private equity fund
Microfinance
1.7
Uganda
Hotel renovation funding
Tourism
7.6
Indonesia
Equity investment in a multi-sector fund
Multi-sector
14.2
Multi-country WAF
Equity investment in an impact investment fund
Multi-sector
0.2
Dem. Rep. of Congo
Investment in microfinance institution
Microfinance
0.3
Sri Lanka
Microfinance and micro-leasing line of credit
Microfinance
7
Multi-country AFR
Equity investment in an investment fund dedicated to assisting companies
Multi-sector
9.5
Senegal
Solar power plant construction
Energy RE
22.3
Multi-country AFR
Equity investment in Education in Africa
Education
Senegal
Solar power plant construction
Energy RE
11.9
Multi-country AFR
Equity investment in SMEs
Miscellaneous
9.5
Multi-country AFR
Equity investment in an investment fund
Healthcare
9.5
Multi-country AFR
Equity investment to support business development
Private equity
15
Multi-country AFR
Equity investment in a private equity fund
Private equity
15.7
Multi-country AFR
Equity investment in an investment fund
Healthcare
9.5
1 5.9
MEDITERRANEAN AND THE MIDDLE EAST
Senegal
Solar power plant construction
Energy RE
0.2
Jordan
Senegal
Solar power plant construction
Energy RE
0.1
Jordan
Funding for a wind farm
Energy RE
23.7
Funding for a wind farm
Energy RE
23.7
Funding for a solar power plant
Energy RE
16.1 12.7
Senegal
Funding for a solar power plant
Energy RE
18.4
Jordan
Tanzania
Support for a local public-sector institution
Banking
11.9
Jordan
Funding for a solar power plant
Energy RE
Tunisia
Microfinance line of credit (Enda)
Banking
8
Jordan
Funding for a solar power plant
Energy RE
Funding for a waste management company
Agribusiness
4.9
Tunisia
Support to strengthen local bank UBCI
Banking
30
Tunisia
Funding for a microfinance institution
Banking
0.6
Turkey
Line of credit (renewable energy)
Banking
50
Multi-country AFR
Equity investment in an energy fund
Conventional energy
0.3
Turkey
Line of credit (renewable energy)
Banking
50
Multi-country Asia
Funding for waste-to-energy projects
Energy RRE** R
3.6
Turkey
Line of credit (renewable energy)
Banking
20
Multi-country Asia
Funding for waste-to-energy projects
Energy RE
3.4
Turkey
Subscription to a bond issue
Healthcare
20
Multi-country Med.
Equity investment in a multi-sector fund
Multi-sector
9.5
LATIN AMERICA AND THE CARIBBEAN El Salvador
Solar power plant construction
Energy RE
45.68
El Salvador
Solar power plant construction
Energy RE
12.32
El Salvador
Micro-enterprise funding
Microfinance
Guatemala
Equity investment (off-grid solar power)
Energy RE
45.68
Honduras
Funding for a solar power plant
Energy RE
12.32
Honduras
Funding for a solar power plant
Energy RE
5.8
Jamaica
Support for the expansion of a container terminal
Transport
45.68
5.8
Nicaragua
Support to strengthen a local bank
Banking
5.8
Panama
Line of credit (renewable energy)
Banking
45.68 12.32
Panama
Line of credit (renewable energy)
Banking
* Both renewable and conventional
Peru
Funding for a hydropower project
Energy RE
1.9
** Includes banking sector development, microfinance, business financing and lines of credit for renewable energy and agribusiness projects, etc
Peru
Dedicated line of credit for local SMEs
Banking
5.8
SERVICES Access to essential
16.4
1
Turkey
FISEA RESULTS New commitments: €53m (excluding technical assistance) Outstanding amounts: €106m (excluding technical assistance) FISEA is the Investment and Support Fund for Businesses in Africa held by the AFD and advised by Proparco.
*RE: Renewable energy **RRE: Renewable and recoverable energy ***EAF: East Africa; WAF: West Africa
ASSISTANCE TO BUSINESSES
goods and services
142,000
ASIA AND THE CAUCASUS
898 Megawatts (MW)
802 Gigawatt hours (GWh)
Electricity:
Healthcare:
Education:
of installed power capacity from renewable energy sources
of power production
13.4m
1,700
6,000 students
theoretical people with access to electric power sources
additional beds in hospitals
enjoying quality educational services at Proparco-financed schools
65% of all projects supported to help improve environmental and social practices
CONTRIBUTION TO GDP Added value:
Contribution to public finances:
€406m
€140m
generated through paid wages and generated profits in countries where Proparco operates
net contribution to national tax revenues
NEW COMMITMENTS AT DECEMBER 31 €923m
60
ST
, 2016
countries
Microfinance
BEIJING China
41% (€379m)
Financial institutions and markets**
by instrument (% of new commitments) Loans
83% (€771m)
Equity interests
16% (€151m)
Guarantees
0% (€0m)
Other instruments
0.2% (€2m)
10
NEW DELHI South Asia
OUTSTANDING AMOUNTS
5
ABIDJAN West Africa
at Dec. 31, 2016 (excluding FISEA)
by sector (% of total)
6
7
€135m in new commitments
SAO PAULO South America
Energy infrastructure*
JOHANNESBURG Southern Africa and Indian Ocean
€1.671m
Industry
Miscellaneous and multi-sector
6% (€290m)
1% (€35m)
89% (€4,280m)
ASIA
Microfinance
Equity interests
10% (€464m)
Guarantees
1% (€31m)
Other instruments
1% (€34m)
€133m in new commitments
€802m
in outstanding amounts
in outstanding amounts
Branch offices
CLIMATE AND ENERGY
JOBS
14% (€651m)
by instrument (% of total)
€331m in new commitments Our 11 offices and the regions they cover
Agriculture and agribusiness
Healthcare and education
SUB-SAHARAN AFRICA
€308m in new commitments
7% (€323m)
2% (€81m)
Loans
MEDITERRANEAN AND THE MIDDLE EAST
Total €4,810m
24% (€1,148m)
8
DOUALA Central Africa
2
Financial institutions and markets**
Telecoms
BANGKOK North and Southeast Asia
NAIROBI East Africa
46% (€2,199m)
2% (€83m)
11
9
LAGOS Nigeria
LATIN AMERICA AND THE CARIBBEAN
OUR IMPACT IN 2016
Total €923m
25% (€229m) Miscellaneous and multi-sector Energy infrastructure*
MEXICO Central America and the Carribean
in outstanding amounts
Agriculture and agribusiness
17% (€154m)
1
€995m
4% (€36m)
2% (€16m)
3
in outstanding amounts
Telecoms
Healthcare and education
SANTO DOMINGO Dominican Republic & Haiti
€1.115m
4% (€34m)
8% (€74m)
PARIS PROPARCO Headquarters
CASABLANCA North Africa
COMMITMENTS IN 2016
at Dec. 31, 2016 (excluding FISEA)
by sector (% of total)
ISTANBUL Turkey and Middle East, Central Asia, Caucasus, Southeast Europe
38
projects
NEW COMMITMENTS
4
AFRICA
(in €m)
732,000
47%
680,500 teq CO
direct jobs created or maintained at Proparco-financed banks, businesses and infrastructure operators
indirect jobs created or maintained among their value chain
Women make up 47% of the workforce at Proparco-financed banks, businesses, infrastructure operators and investment funds
will be avoided per year thanks to 17 climate projects
2
(in €m)
MULTI-COUNTRY
(in €m)
Multi-country
Equity investment in renewable energy production
Energy RE
15
South Africa
Senior line of credit
Banking
28.5
Armenia
Support to strengthen a local bank
Banking
19
Benin
Long-term funding support
Banking
15
Bangladesh
Support to strengthen a local bank
Banking
15.2
Burkina Faso Senior line of credit
Banking
15
Bangladesh
Funding for fruit juice production
Agribusiness
7.6
Multi-country
Finance
1.7
Cameroon
Support to strengthen bank structure
Banking
20
Equity investment in a private equity fund
Myanmar
Funding for telecom tower construction
Telecoms
7.6
Ivory Coast
Funding for Abidjan Airport
Transport
13
Cambodia
Funding and technical assistance
Microfinance
5.7
Multi-country EAF***
Equity investment in an insurance company
Banking
10
Gabon
Rail track rehabilitation
Transport
16.3
Cambodia
Microfinance funding
Microfinance
9.5
Ghana
Funding for a mortgage lending company
Banking
2.6
Multi-country EAF
Finance
14.2
Georgia
Healthcare investment programme
Healthcare
14.2
Equity investment in a fund dedicated to SME development
Guinea
Funding for a hotel chain
Tourism
2.6
Georgia
Healthcare investment programme
Healthcare
9.5
Multi-country EAF
Multi-sector
4.7
Kenya
Funding for a geothermal power plant
Energy RE*
2.1
Equity investment in a microfinance investment fund
Mauritius
Support to strengthen capital base
Banking
10
India
Equity investment (financial inclusion and social welfare)
Private equity
7.6
Multi-country WAF***
Capital raising for a startup
Services
0.9
Niger
Telecom tower acquisition
Infrastructures
12.5
India
Solar power facilities funding
Energy RE
Niger
Telecom tower acquisition
Infrastructures
14
India
Investment in microfinance institution
Banking
Multi-country WAF
Equity investment in a pan-African investment fund
Multi-sector
5
Nigeria
Investment in a fertilizer company
Agribusiness
19
India
Funding for a private equity fund
Microfinance
1.7
Uganda
Hotel renovation funding
Tourism
7.6
Indonesia
Equity investment in a multi-sector fund
Multi-sector
14.2
Multi-country WAF
Equity investment in an impact investment fund
Multi-sector
0.2
Dem. Rep. of Congo
Investment in microfinance institution
Microfinance
0.3
Sri Lanka
Microfinance and micro-leasing line of credit
Microfinance
7
Multi-country AFR
Equity investment in an investment fund dedicated to assisting companies
Multi-sector
9.5
Senegal
Solar power plant construction
Energy RE
22.3
Multi-country AFR
Equity investment in Education in Africa
Education
Senegal
Solar power plant construction
Energy RE
11.9
Multi-country AFR
Equity investment in SMEs
Miscellaneous
9.5
Multi-country AFR
Equity investment in an investment fund
Healthcare
9.5
Multi-country AFR
Equity investment to support business development
Private equity
15
Multi-country AFR
Equity investment in a private equity fund
Private equity
15.7
Multi-country AFR
Equity investment in an investment fund
Healthcare
9.5
1 5.9
MEDITERRANEAN AND THE MIDDLE EAST
Senegal
Solar power plant construction
Energy RE
0.2
Jordan
Senegal
Solar power plant construction
Energy RE
0.1
Jordan
Funding for a wind farm
Energy RE
23.7
Funding for a wind farm
Energy RE
23.7
Funding for a solar power plant
Energy RE
16.1 12.7
Senegal
Funding for a solar power plant
Energy RE
18.4
Jordan
Tanzania
Support for a local public-sector institution
Banking
11.9
Jordan
Funding for a solar power plant
Energy RE
Tunisia
Microfinance line of credit (Enda)
Banking
8
Jordan
Funding for a solar power plant
Energy RE
Funding for a waste management company
Agribusiness
4.9
Tunisia
Support to strengthen local bank UBCI
Banking
30
Tunisia
Funding for a microfinance institution
Banking
0.6
Turkey
Line of credit (renewable energy)
Banking
50
Multi-country AFR
Equity investment in an energy fund
Conventional energy
0.3
Turkey
Line of credit (renewable energy)
Banking
50
Multi-country Asia
Funding for waste-to-energy projects
Energy RRE** R
3.6
Turkey
Line of credit (renewable energy)
Banking
20
Multi-country Asia
Funding for waste-to-energy projects
Energy RE
3.4
Turkey
Subscription to a bond issue
Healthcare
20
Multi-country Med.
Equity investment in a multi-sector fund
Multi-sector
9.5
LATIN AMERICA AND THE CARIBBEAN El Salvador
Solar power plant construction
Energy RE
45.68
El Salvador
Solar power plant construction
Energy RE
12.32
El Salvador
Micro-enterprise funding
Microfinance
Guatemala
Equity investment (off-grid solar power)
Energy RE
45.68
Honduras
Funding for a solar power plant
Energy RE
12.32
Honduras
Funding for a solar power plant
Energy RE
5.8
Jamaica
Support for the expansion of a container terminal
Transport
45.68
5.8
Nicaragua
Support to strengthen a local bank
Banking
5.8
Panama
Line of credit (renewable energy)
Banking
45.68 12.32
Panama
Line of credit (renewable energy)
Banking
* Both renewable and conventional
Peru
Funding for a hydropower project
Energy RE
1.9
** Includes banking sector development, microfinance, business financing and lines of credit for renewable energy and agribusiness projects, etc
Peru
Dedicated line of credit for local SMEs
Banking
5.8
SERVICES Access to essential
16.4
1
Turkey
FISEA RESULTS New commitments: €53m (excluding technical assistance) Outstanding amounts: €106m (excluding technical assistance) FISEA is the Investment and Support Fund for Businesses in Africa held by the AFD and advised by Proparco.
*RE: Renewable energy **RRE: Renewable and recoverable energy ***EAF: East Africa; WAF: West Africa
ASSISTANCE TO BUSINESSES
goods and services
142,000
ASIA AND THE CAUCASUS
898 Megawatts (MW)
802 Gigawatt hours (GWh)
Electricity:
Healthcare:
Education:
of installed power capacity from renewable energy sources
of power production
13.4m
1,700
6,000 students
theoretical people with access to electric power sources
additional beds in hospitals
enjoying quality educational services at Proparco-financed schools
65% of all projects supported to help improve environmental and social practices
CONTRIBUTION TO GDP Added value:
Contribution to public finances:
€406m
€140m
generated through paid wages and generated profits in countries where Proparco operates
net contribution to national tax revenues
THE PRIVATE SECTOR, AN ESSENTIAL DRIVER OF ECONOMIC GROWTH
OUR STRATEGY OUR AMBITION FOR 2020
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
SDG
JOBS
Proparco has sustained the momentum for the fifth year in a row, growing by 21% approving financing of close to €1.5 billion for businesses and financial institutions operating in developing and emerging economies. Those organizations are taking action in increasing numbers to meet the needs of developing countries. Furthermore, they are doing so in sectors that currently drive economic growth, including energy production, most notably from renewable sources, agribusiness, freight and passenger transport, financial services, healthcare and education.
1.7m direct and indirect jobs support for per year
CLIMATE
15m teq CO
2 avoided per year
2020: €2bn per year
PROPARCO COMMITMENTS
x2
CLIENTS IMPACTS
x3
2015: €1.05bn per year
SERVICES
EDUCATION, HEALTHCARE, ENERGY INFRASTRUCTURE
12m theoretical people
with access to essential goods and services per year
FINANCING APPROVALS
ASSISTANCE TO BUSINESSES
SDG
INNOVATION
45 innovative programmes
per year targeting vulnerable population groups
Climate
€2bn
devoted to programs that move forward the fight against climate change
INNOVATION
Mobilizing resources to maximize impact
In addition to financing, Proparco’s role also involves encouraging the emergence of socially responsible, innovative business people and financial service providers in developing and emerging economies. This means helping its clients improve their environmental and social performance and their governance. Moreover, to achieve its aims, Proparco takes a broad-based approach to governance. Alongside majority shareholder AFD, public and private sector financial institutions from France, Africa, and Latin America, service providers, industrial firms in countries where Proparco operates and ethical funds and foundations are all part of its governing bodies.
120
CSR
180
Customers
assisted with improving their environmental and social performance, above all through our technical assistance offer
Projects financed over the period
Additional third-party resources
€1bn
mobilized by Proparco
Fragile States
€1bn
dedicated to least advanced, low-income, transition or post-crisis countries
Equity and similar instruments totalling
€1.5bn
151, rue Saint-Honoré – 75001 Paris Tel. : +33 1 53 44 31 08 www.proparco.fr blog.private-sector-and-development.com
September 2017 - © Proparco. All rights reserved Production - 40 years visual : Entrecom - Photos : ©Oriane Zerah ©Sébastien Rieussec ©Clement Tardif This report has been printed on recycled paper using vegetal and non-mineral inks.
€2.7bn
Proparco ranks today among Europe’s foremost development financing institutions, often conducting joint projects with its counterparts. Its work focuses on sectors that are crucial to development, such as infrastructure – with emphasis on renewable energy – agribusiness, finance, healthcare and education. Through the support it provides, Proparco contributes to job creation, the supply of essential goods and services and more broadly to the reduction of poverty and climate change mitigation.
Innovation
Africa
in financing dedicated to the continent
Proparco, a subsidiary of Agence Française de Développement (AFD) devoted to private sector financing, has been acting to promote sustainable development for 40 years. In 80 countries spanning Africa, Asia, Latin America and the Middle East, Proparco provides funding and assistance to businesses and financial institutions.
RESOURCES
EXPERTISE
CONSOLIDATION
OUR RESOURCES 2017-2020
Supporting innovative projects aimed at vulnerable population groups
FROM 2015
FROM 2015
by Proparco on environmental, social and governance issues
Strengthening our role as providers of expert assistance to our customers
+74%
+21%
SDG
180 companies assisted
Stepping up our work in areas of key importance to development
ONGOING CLIMATE COMMITMENT
(in €m)
KEY FIGURES
€504m
2014
2015
2016
1,066 1,054 1,279
EQUAL TO 39% OF ALL FUNDING (excluding FISEA)
will go to projects with a positive impact on climate change (e.g., renewable energy, energy efficiency).
AFRICA AS PRIORITY FOCUS
€509m
OF ALL FINANCING APPROVALS IN AFRICA
on behalf of the AFD Group in the form of loans, grants, equity investments and guarantees for countries and private enterprise.
RECORD USE OF EQUITY AND SIMILAR INSTRUMENTS
€177m
EQUAL TO 19% OF OUR FUNDING
+54% FROM 2015
invested in equity, quasi-equity and subordinated loans to strengthen and support the growth of private companies operating in developing and emerging economies.
2 million
PEOPLE WILL BE MICROCREDIT BENEFICIARIES
PARTNERING TO ACHIEVE GREATER LEVERAGE
22%
OF ALL FUNDING
provided through co-financing arrangements with our fellow EDFIs – Germany’s DEG and the Netherlands’ FMO – totalling over €1bn.