2009 Annual report Proparco by Agence Française de Développement

Publications annual report 2009

All our publications and films can be downloaded at www.proparco.fr, under Publications

GEOGRAPHICAL AND SECTORAL BROCHURES • PROPARCO in Sub-Saharan Africa • PROPARCO in China • Financing access to sustainable energy • Supporting responsible microfinance • FISEA: Getting involved and investing in African businesses

FINANCIAL Brochures • PROPARCO’s financial products in the Middle East • PROPARCO’s financial products in Morocco • PROPARCO’s financial products in Tunisia • PROPARCO’s financial products in West Africa

PRIVATE SECTOR & DEVELOPMENT MAGAZINE

Annual report

2009

Take out a free subscription to PROPARCO’s bimonthly magazine – a platform for debate on the role the private sector plays in developing countries www.proparco.fr • N ˚ 5: Africa’s financial markets: a real development tool? • N ˚ 4: What are the economic and social Impacts of the mobile phone sector in developing countries? • N ˚ 3: What balance between financial sustainability and social issues in the microfinance sector? • N ˚ 2: How can the private sector help provide access to drinking water in developing countries? • N ˚ 1: SME financing in Sub-Saharan Africa

151, rue Saint-Honoré - 75001 Paris Tel.: +33 1 53 44 31 08 - Fax: +33 1 53 44 38 38 www.proparco.fr

Films

• Teatime in Gachege, Kenya • Sustainable cogeneration in Kenya • Financing private equity investment in Morocco • Financing microfinance in Morocco • South Africa: Supporting “Black Economic Empowerment” • Development and the private sector

WEBSITE Visit our website: www.proparco.fr

PROPARCO

Films about projects financed by PROPARCO (5 minutes long)

ANNUAL REPORT 09 INVESTING IN A SUSTAINABLE FUTURE

LONG-TERM INVESTMENT IN THE SOUTH p 6-17 MEETING THE CHALLENGES OF EACH REGION p 18-27 FOUR PRIORITY SECTORS p 28-33 Matching INVESTORS’ FINANCIAL NEEDS p 34-39

KEY FIGURES 2009 PROPARCO's FINANCING AND COFINANCING IN 2009 WILL CONTRIBUTE TO:

Connecting 55 000 people to an electricity supply network

Connecting 6 million people to a telecoms network Securing or creating

815 000 jobs

Reducing annual greenhouse gas emissions

2.2 million tons of CO2 eq

Stateby revenues per year €1 380M Supporting the CSR processes of 4 000 businesses Boosting

SELECTING PROJECTS FOR THEIR IMPACTS p 40-45 OPERATIONAL AND FINANCIAL RESULTS p 46-53 APPENDIX p 54-61

1 121

in 2009

789

in 2008

598

172

68 42

in 2007

370

in 2005

401

85 285

314

30 35

17 12 488

552

766

9 in 2004

COMMITMENTS (in €M) AFD SUB-PARTICIPATION

in 2005

30 24

23 21

10 in 2006

in 2007

in 2008

in 2009

income (in €M) FRENCH OVERSEAS Territories fisea

FOREIGN COUNTRIES

in 2006

33 54

263

NET BANKING INCOME NET INCOME INCOME FROM ORDINARY ACTIVITIES BEFORE TAX

in 2003

1 984 in 2009

1 629

12.7%

in 2004

in 2008

887

950

in 2006

987

in 2007

in 2005

in 2006

in 2007

4.5%

in 2008

in 2009

8.1%

in 2005

5.5%

3.9% 2.6% BALANCE SHEET (in €M)

NON-PERFORMING LOANS in €M

in %

ANNUAL REPORT proparco 2009 Long-term investment in the South

LONG-TERM INVESTMENT IN THE SOUTH

One of the cornerstones of development policie is to support the private sector. PROPARCO has proved that its business model based on patient and responsible investment is profitable and can catalyse private investment in emerging and developing economies. It consequently gives local and international players incentives to invest in a sustainable future.

BOARD OF DIRECTORS DIRECTORS Jean-Michel SEVERINO Chairman (11) Michel JACQUIER Vice-Chairman (2) Jean-Jacques MOINEVILLE Pierre JACQUET (16) Gilles BERGIN (9) Anne PAUGAM

CORPORATE OFFICERS Chairman Jean-Michel SEVERINO (11) Chief Executive Officer Luc RIGOUZZO (15) Deputy Chief Executive Officers Philippe BASSERY (7) , Laurent DEMEY

PERMANENT REPRESENTATIVES Agence française de développement Jean-Michel DEBRAT Natixis Jean-Claude GARDETTE (6) Crédit agricole SA Eric HOTELLART (14) BPCE Josiane LANCELLE (4) Development bank of Southern Africa Admassu TADESSE (17) BNP Paribas Philippe SECHAUD (18) CDC Entreprises élan PME Pascal LAGARDE (3) DEG Winfried NAU (10) Financière OCEOR Philippe GARSUAULT (12) BMCE Bank Jaloul AYED

NON-VOTING DIRECTORS AND OBSERVERS Statutory non-voting directors French Ministry of the Economy, Industry and Employment Thomas GROH French Ministry of Foreign and European Affairs Cyrille PIERRE (1)

Non-statutory non-voting directors Aga Khan Fund for Economic Development Lutaf KASSAM

West African Development Bank Oumar DIARRA

Coface

Maëlia DUFOUR (13)

GDF Suez

Micheline BOSSAERT (8)

Veolia eau

Patrice FONLLADOSA (5)

GOVERNMENT COMMISSIONER Daniel BESSON (19) AFD WORKS COUNCIL REPRESENTATIVE François JAY

4 5 6

10 11 12

14 15

16 17

18 19

AUDITORS Société Mazars Odile COULAUD, Guillaume POTEL Société KPMG Arnaud BOURDEILLE , Malcom Mc LARTY

ANNUAL REPORT proparco 2009 Long-term investment in the South

MESSAGE FROM

JEAN-MICHEL SEVERINO CHAIRMAN OF PROPARCO Support for the private sector was for a long time the poor cousin of development aid policies and took a back seat to support for public investment, social expenditure or “good governance” programs. At best, we spoke about improving the business environment. Things have now changed on all fronts: private businesses are key players in developing economies and have grown aware that they cannot be blinkered to the difficulties of the societies in which they work. Public policymakers have in turn understood

the extent to which businesses can be levers for development. Start-ups or newly established businesses bring vital public resources to an economy via their tax contributions and provide a stable income for populations in the grip of economic insecurity. But nowadays the private sector plays a role that goes well beyond simply creating wealth. Businesses have a number of impacts on the society, economy and environment in which they work and are consequently quite naturally a target for public policies: by helping them to improve their practices, it is possible to reach development objectives that standard public intervention is not able to achieve. Public players can support groups that engage in a responsible process by providing their knowledge of South societies and the challenges they face. They can therefore help them go the extra mile in their commitment. Private players from both the North and South have also chosen to be vehicles for development policies in addition to their own economic targets. A business is a gateway to a vast network of salaried workers, suppliers and clients. In remote areas where public services are lacking, it is quite common to see businesses that make their health and education programs available to the whole population in the area where they are established. Businesses are more than simply targets or vehicles of public policies: they now also become stakeholders in them. They have long been key operators for essential services via public-private partnerships (drinking water, electricity supply) and are increasingly seen as developers of solutions for the poorest.

The aim of these new forms of partnership between “developers” and “entrepreneurs” is not to create confusion between their respective roles and objectives, but to capitalise on synergies between public and private players. PROPARCO’s experience in recent years has shown that the convergence between the two has been much greater and much more profitable than one would have dared hope. Yet despite this observation, stumbling blocks to the development of the private sector continue to exist in a number of developing countries. Small and medium-sized enterprises continue to find it difficult to access financing, financial markets are not well-structured and banks are reluctant to lend... The activity of financing investment for growth, sustainable development and achieving the Millennium Development Goals - the core mission for development finance institutions such as PROPARCO - consequently continues to face major challenges: development players have a role to play in supporting businesses in geographical areas (post-crisis countries, the least developed economies) or sectors (microfinance, agriculture) where they would not have spontaneously worked by reducing the risks that stem from these groundbreaking activities. These financial institutions may not be able to single-handedly create growth, but they can support it, boost it, consolidate it and orient it towards models that are sustainable from a social and environmental perspective. By allocating loans, guarantees, long-term financing in local currency and developing private equity investment, PROPARCO’s staff help private initiatives get off the ground. Behind this day-to-day business of financing, there are the life projects of millions of men and women. Each one of them gives a real meaning to the growth in PROPARCO’s volume of activity.

A NORTH/SOUTH community OF INVESTORS PROPARCO was created over thirty years ago on the conviction that the private sector plays a key role in the development of South countries. PROPARCO is a development finance institution with a governance structure that sets it apart from its European partners. It gathers thirty private and public shareholders from both the North and South that all share a common commitment to development. Its main shareholder is Agence Française de Développement (59%), a public institution with a mandate to implement France’s official development assistance policy. PROPARCO benefits from AFD support in terms of financial backing, its commercial network, geographical presence and human resources. PROPARCO tripled its capital in June 2008. This led

to an increase in the number of private shareholders which now hold 41% of its capital. These external partners - French and European banks and financial institutions and major African partners - provide invaluable support for governance and strategic piloting. The economic and financial crisis has underscored the extent to which the global recovery depends more than ever on South economies. PROPARCO’s North/South and public/ private governance gives it an edge in terms of meeting the future challenges of this multi-polar and multi-player world.

Capital breakdown: a420M Agence française de développement

59%

French financial institutions

26%

BPCE BNP Paribas Crédit agricole SA CDC Entreprises élan PME Coface Financière OCEOR Natixis Société générale

International financial institutions

11%

Aga khan fund for economic development BMCE Bank Banque de Tunisie Bank of Africa West African Development Bank Development bank of Southern Africa Deutsche investitions –und entwicklungsgesellschaft / DEG

French companies

Bouygues Bouygues construction DMC GDF Suez Saga Saur International SES SA SIPH Socotec international Somdiaa Veolia

Funds and ethical foundations

Mr. Xavier de Bayser IDEAM Natixis solidaire

ANNUAL REPORT proparco 2009 Long-term investment in the South

INTERVIEW WITH

LUC RIGOUZZO CHIEF EXECUTIVE OFFICER OF PROPARCO WE WILL REMEMBER 2009 FOR THE GLOBAL FINANCIAL CRISIS WHICH DID NOT SPARE DEVELOPING COUNTRIES. WHAT IMPACTS WERE THERE FOR PROPARCO?

Paradoxically, this crisis led to record growth for PROPARCO because we were widely called upon to offset the crunch on available financial resources in South countries. PROPARCO fully played its countercyclical role by supporting projects that had difficulty in obtaining financing from the banking system. Growth was fuelled by three main engines: Africa, where the volume of commitments reached an all-time high ( €447M); infrastructure projects: they are highly dependent on long-term financing which was in short supply; and the extension of our geographical mandate to all developing countries. This opened up new prospects in Latin America and Asia. All these factors resulted in a record level of 1.1 billion euros of commitments for PROPARCO. The balance sheet reached 2 billion euros which is double the 2007 figure. DID THE CONJUNCTION OF PROPARCO’S STRONG GROWTH AND THE ONSET OF A GLOBAL FINANCIAL CRISIS INCREASE YOUR RISKS?

Despite the difficult context, as things stand most of our clients have held out well and we have been able to keep our risks under control. We have consequently had no losses directly linked to the crisis and the rate of non-performing loans at the end of 2009 reached its lowest ever level at 2.6%.

BEYOND VOLUMES, WHAT TYPE OF PROJECTS DID PROPARCO FINANCE THIS YEAR?

All the projects we finance are selected for the contribution they will make to PROPARCO’s three core missions: providing the poorest with basic services, promoting growth and employment and disseminating high environmental and social standards. In Africa - PROPARCO’s first priority - we have, for instance, financed the initial public offering of an agribusiness company, the creation of a bank in the Democratic Republic of Congo, the construction of a seawater desalination plant in Namibia, the development of a network of telecom towers in Nigeria and we have invested in several investment funds specialised in SME financing. In the infrastructure sector, we have supported the development of road transport in Tunisia and Jamaica, air transport in West Africa and maritime transport in Djibouti. In other sectors, we have promoted access to water (water supply in the city of Amman) and, of course, energy (hydropower plants in Lao PDR and Pakistan, a wind farm in India). 30% of the projects we have financed have helped combat climate change. This is the case for the lines of credit we have allocated to Brazilian, Turkish and Indian banks to finance environmental projects, or again biomass projects in China, or bioethanol and cogeneration projects in Guatemala. Finally, this year we have given an even greater place to microfinance projects and social sectors (cancer clinic in Tunisia, university campus network in Brazil).

ANNUAL REPORT proparco 2009 Long-term investment in the South

interview with

LUC RIGOUZZO CHIEF EXECUTIVE OFFICER OF PROPARCO

WHAT ARE THE MAIN IMPACTS OF THESE PROJECTS?

PROPARCO verifies that its operations are effective by systematically measuring the impact of its financing. For example, the projects financed or cofinanced in 2009 will provide 55 000 people with access to electricity, connect 6 million others to a telecoms network, support 110 000 businesses and create or secure 815 000 jobs. This financing will also help improve the quality of drinking water supply systems for 2 million people, produce 425 MW of energy and reduce greenhouse gas emissions by 2.2 million tons of CO2 eq every year. But our main impact this year has been our capacity to meet the needs of our clients during this period of crisis. PROPARCO’S GOVERNANCE IS ORIGINAL: IT IS BOTH PUBLIC AND PRIVATE, FROM THE NORTH AND THE SOUTH. HOW DO YOU LEAD THIS COMMUNITY?

FISEA : A NEW EQUITY FINANCING SOLUTION IN SUB-SAHARAN AFRICA FISEA is an investment fund that takes equity participations in businesses, banks, microfinance institutions and investment funds operating in Sub-Saharan Africa. It is one of the key mechanisms of the French Initiative for Growth and Employment in Africa launched by the French President in February 2008. FISEA’s capital endowment was provided by AFD. Project appraisal and management have been entrusted to PROPARCO. FISEA aims to be complementary to traditional private funds and focuses on investments that carry a higher risk in unstable or post-crisis regions. It makes small investments in sectors that are traditionally neglected. The fund has a €50M annual investment target over a five-year period. In 2009, 13 projects were approved totalling €62.3M. > FIND OUT MORE AT www.proparco.fr

Our first meeting place is, of course, the Board of Directors where we take all the major decisions concerning our company. But we want this community of investors and entrepreneurs to actively exist and share a common commitment to support development. This is why we restarted our “Investors’ Club” in 2009 where PROPARCO’s shareholders, partners and main clients gathered to debate the topic of the crisis in Africa. The topic of the 2010 edition is carbon finance in Africa and the Mediterranean. PROPARCO also participates in leading the network of European Development Finance Institutions which I have the privilege of chairing in 2009 and 2010. We also enjoy close relations with both the international and French financial community. This is, for example, the reason why we signed a framework agreement with the French agency for international business development, Ubifrance, in September which aims to promote relations between French companies and the countries where we are active. WHAT WERE THE MAJOR INITIATIVES OF 2009?

The year was marked by four initiatives. The first was the launch of FISEA, the Investment and Support Fund for Businesses in Africa, one of the three cornerstones of the French Presidential Initiative for Growth and Employment in Africa. After eight months of activity, the fund has already financed thirteen projects for an amount totalling 62.3 million euros. PROPARCO and the World Bank Group’s International Finance Corporation signed an agreement to finance infrastructure. PROPARCO pledged to inject up to a billion euros in the cofinancing facility that has been set up to support infrastructure projects in developing countries.

PR IVATE SEC TO R & D E VELO PMENT, PRO PARCO ’ S MAG AZI NE Private Sector & Development is a bimonthly magazine published by PROPARCO. Every issue focuses on one topic and gathers the opinions of specialists that have different and complementary approaches. Five issues have already been published on a wide range of topics such as: “SME financing in Sub-Saharan Africa”, “How can the private sector help provide access to drinking water in developing countries?”, “What balance between financial sustainability and social issues in the microfinance sector?”, “What are the economic and social impacts of the mobile phone sector in developing countries?”, “Africa’s financial markets: a real development tool?”. > TAKE OUT A FREE SUBSCRIPTION AT www.proparco.fr

However, despite the 2008 capital increase and the strong growth in In terms of innovative financing, AFD Group and Crédit Agricole Asset our activity for several years, PROPARCO remains a relatively small Management have launched a mutual fund, Amundi AFD avenirs ducompany in view of the challenges and investment needs of the rables. The aim is to involve savers from the North in financing for countries where we operate. Following the extension of our business projects cofinanced by PROPARCO via a cautious and responsible inarea, it is essential for us to continue to be selective and focus on our vestment. Amundi will be becoming a new shareholder of PROPARCO core mandates with Africa and the Mediterranean as priorities, and in the coming months. to be highly selective in terms of sectors in the other regions. Finally, Finally, 2009 saw the launch of “Private Sector & Development”, in developing our partnerships, we will be giving priority to European PROPARCO’s magazine. This magazine provides a space for debate financial institutions and our long-standing partners. and experience sharing on the private sector’s contribution to development policies. By gathering the opinions of entrepreneurs, financiers, researchers, donors or NGOs, our aim is to improve practices and gal- WHAT ARE THE PROSPECTS FOR 2010? vanise investment in these countries. The latest April 2010 issue focuses There are signs that 2010 will look nothing like 2009. The financial crion financial markets. sis is largely behind us and financial systems in many emerging countries have found themselves in a situation of overliquidity (India, Brazil). PROPARCO HAS DEVELOPED ENORMOUSLY OVER THE PAST 4 YEARS: We have observed a fall in the number of investment programmes in STAFF, MANDATE, GROWTH, GEOGRAPHICAL AREA... most companies due to the economic crisis. PROPARCO will conseWHAT ARE THE CHALLENGES FOR YOU NOW? quently probably receive fewer requests than in 2009. We have also observed a fall in the activity of all development finance institutions in The first major challenge is to manage to integrate our new colthe first quarter of 2010. leagues and control our growth. In five years, we have almost tripled In this context, our shareholding platform, which is unique in the our staff to support this growth in activity. All the women and men world of donors, will give us an edge and will allow us to pursue and that make up PROPARCO show a high level of professionalism, a strengthen our mission: to catalyse private investment in order to supcommitment to the development of South countries and very rapidly port developing countries. I am sure that in 2010 as much as in 2009, share a common culture. This wealth also constitutes a challenge PROPARCO’s teams will strive to demonstrate that long-term investand the increase in human resources must go hand in hand with a ment in South countries both serves a purpose and is profitable. strengthening of procedures in order to ensure our operations flow smoothly without any risk.

ANNUAL REPORT proparco 2009 Long-term investment in the South

Proparco A PATIENT AND RESPONSIBLE INVESTOR The international crisis has led to a fall in banking activity and foreign direct investment flows in developing countries. PROPARCOâ&#x20AC;&#x2122;s mandate - to support and catalyse long-term investment in the South - has taken on its full meaning in this context. PROPARCO promotes private investment in emerging and developing countries with the aim of supporting growth, sustainable development and the Millennium Development Goals. In 2009, PROPARCO extended its business area to all developing and emerging countries, i.e. over a hundred and fifty countries in Africa, Asia and Latin America. However, PROPARCO continues to tailor its approach to the areas in which it invests. In emerging countries, the company works to preserve global public goods and promote social and environmental responsibility. In developing countries, particularly Africa, it supports economic growth and employment. The projects supported are selected first and foremost for their developmental impacts and concern access to financing for businesses and banks, basic infrastructure construction and the fight against climate change. PROPARCO fulfils its mandate by providing innovative financial solutions tailored to its clientsâ&#x20AC;&#x2122; needs: loans in foreign or local currencies, direct equity investments, private equity investment, guarantees and financial engineering. In addition to its financing, PROPARCO provides - and is developing - capacity building services for businesses. In 2009, and despite the crisis, PROPARCO continued to play its role as a patient and responsible investor. It has once again demonstrated by the impacts of its financing and its financial results that development and profitability go hand in hand.

OUR MANDATE: BOOSTing PRIVATE INVESTMENT IN SOUTH COUNTRIES The private sector plays a key role in developing economies. It is the main engine of growth and job creation and generates resources that allow States to fulfil their role as regulators and wealth redistributors. It also helps provide certain essential services and plays a key role in meeting environmental and social challenges. PROPARCO consequently promotes private sector investment in emerging and developing countries with three main targets: to promote economic growth and job creation; to provide the poorest populations with basic services via the private sector (electricity, water, infrastructure, housing, health, education, microfinance); to disseminate high environmental and social standards, particularly for energy efficiency.

• • •

> FIND OUT MORE AT www.proparco.fr

VIEWPOINT

What role does PROPARCO’s international network play vis-à-vis the Paris headquarters? B y F lorence Kimata , I NVE S TMENT O FFICER AT PRO PARCO’ S N AI RO B I O FFICE

“Our role in the field is to implement PROPARCO’s financing activity. We identify investments that have high developmental impacts and are, at the same time, viable from a financial, social and environmental perspective. This requires us to tailor our approach to the local situation. PROPARCO’s regional offices need to be strengthened in order to support its growth. This will ensure the company maintains the quality of the projects it finances. It involves recruiting motivated teams with extensive experience in operational sectors and specific skills in finance and banking. Having investment officers in the field is a major advantage for PROPARCO: it allows us to build up close and long-term relations with our clients. What does my work at PROPARCO mean to me? I worked for six years in development, then in a commercial bank. I realised that one of the keys to the success of development initiatives is to give the private sector access to financing...”.

ANNUAL REPORT proparco 2009 Long-term investment in the South

A GLOBAL NETWORK In 2009, PROPARCO extended its business area to all countries eligible for official development assistance as defined by the OECD. PROPARCO is now active in Africa, the Mediterranean, Asia, Eastern Europe and Latin America. Projects are supervised in the field either by regional offices or directly by headquarters. PROPARCO also benefits from the support of AFD’s network of 40 agencies.

SAO PAULO

Central Africa and Nigeria

Morocco, Mauritania, Algeria

Ballywoods Office Park Ironwood House, 1st Floor 29 Ballyclare Drive - Bryanston P.O. Box 786555 - Sandton 2146 Johannesburg, South Africa Tel.: (27) 11 540 7100 Fax: (27) 11 540 7117 proparcojohannesbourg@afd.fr

Melrose Office suites Phoenix House Plot 26E Abdulrahman Okene Close Off Ligali Ayorinde Street Victoria Island Lagos - Nigeria Tel.: (234) 12705740

15, avenue Mers-Sultan 20130 Casablanca, Morocco Tel.: (212) 522 29 53 97 Fax: (212) 522 29 53 98 afdcasablanca@afd.fr

Team Sophie Le Roy - Quinton Soper Emilie Menard - Kalinka Hemraj Guillaume Rémy

Team Charles-André Le Pape - Ljeoma Ogoke Eric Sossou - Pauline Morin

Team Amaury Mulliez - Mathieu Lebègue

Southern Africa and Madagascar

West Africa

East Africa

Tunisia

Boulevard François Mitterrand 01 BP 1814 Abidjan, Côte d’Ivoire Tel.: (225) 22 40 70 40 Fax: (225) 22 44 21 78 proparcoabidjan@proparco.fr

Royal Ngao House - Hospital Road P.O Box 45995 00100 Nairobi, Kenya Tel.: (254) 20 271 12 34 (254) 20 271 10 58 Fax: (254) 20 271 79 88 afdnairobi@groupe-afd.org

Immeuble Miniar - Bloc B 3e et 4e étages Rue du Lac d'Ourmia 1053 Les Berges du Lac Tunis, Tunisia Tel.: (216) 71 861 799 Fax: (216) 71 761 825 afdtunis@afd.fr

Team Julien Lefilleur - Clément Marchand

Team Ghislain de Valon - Florence Kimata Sébastien Gregarek - Samy Ghannam

Team Emmanuel Haye - Katia Mehanneche Nadia Ben Azouz

PARIS BEIJING TUNIS CASABLANCA Cairo

NEW DELHI

BANGKOK LAGOS ABIDJAN NAIROBI

JOHANNESBURG

Southeast Asia

China

Southern Asia

Exchange Tower, Unit 3501-02 35th floor 388 Sukhumvit Road, Klongtoey Bangkok 10110, Thailand Tel.: (66) 02 663 6090 afdbangkok@afd.fr

7 Floor, Block C, East Lake Villas 35 Dongzhimenwai Avenue Dongcheng District Beijing 100027, China Tel.: (8610) 84 51 12 00 Fax: (8610) 84 51 13 00 afdpekin@groupe-afd.org

1A Janpath New Delhi, 110 001 India Tel.: (91) 11 2379 3747 Fax: (91) 11 2379 3738 afdnewdelhi@afd.fr

Team Antoine Vigier - Nancy Choophungart Grégory Scopélitis - Charlène Menson

Team Ariane Ducreux - Chen Jing Zhao Suying

Team Jean-Pierre Barral - Yatin Kundra Emilie Pascal

Brazil

Middle East

Paris

Edificio Çiragan Office Alameda Ministro Rocha Azevedo 38 - 11 andar - cj.1104 01410-000 - São Paulo, SP - Brazil Tel.: (55) 11 2532-4751 / 4752 / 4753 / 4750 Fax: (55) 11 3142-9884 afdsaopaulo@groupe-afd.org

10 Sri Lanka Street Zamalek Cairo, Egypt Tel.: (202) 27 35 17 88 Fax: (202) 27 35 17 90

151, rue Saint-Honoré 75001 Paris, France Tel.: (33) 1 53 44 31 08 Fax: (33) 1 53 44 38 38

Team Christophe Blanchot - Rose Cuten Marc Lebreton - Paula Lieff

Team Thomas Eloy - Sébastien Delannoy

PROPARCO’s offices PROPARCO’s business area

MEETING THE CHALLENGES OF EACH REGION

PROPARCO extended its business area in 2009 and now tailors its interventions to four core challenges: growth in Africa; employment and regional integration in the Mediterranean; g reen and inclusive growth in Asia, Eastern Europe and Latin America; regional integration in the French Overseas Territories.

ANNUAL REPORT PROPARCO 2009 Metting the challenges of each region

PROPARCO NOW ACTIVE ON FOUR CONTINENTS PROPARCO’s history has been marked by a continuous succession of geographic expansions. When it was founded in 1977, the company mainly focused on French-speaking Sub-Saharan Africa. In the early 1990s, its activity was extended to the Maghreb region, then English-speaking Africa, before slowly moving into Asia and a few Caribbean countries.

Rice manufacturing and processing plant Cambodia

Since 2004, PROPARCO’s geographic expansion towards major emerging countries (Brazil, China, etc.) has been gathering pace under a mandate to combat climate change. This gradual development of the company pursues two objectives: to give priority to Africa and build sectoral expertise in the other developing economies. The 2008 financial crisis sparked a downturn in commercial banking activities in South countries and once again underscored the key and countercyclical role played by development agencies. The October 2008 G8 called for widespread intervention by bilateral agencies. PROPARCO’s Board of Directors subsequently took two major decisions (in December 2008 and March 2009): to raise restrictions on PROPARCO’s mandate in emerging countries and to extend its business area to all developing countries as defined by the Organisation for Economic Co-operation and Development (OECD). This decision immediately opened up an extremely vast area for PROPARCO which includes, for example, Latin America and Central Asia.

This major expansion led PROPARCO to overhaul its strategy. The company continues to have an open and multi-sectoral mandate to support growth in its traditional geographical areas in which it has acquired unique expertise: this concerns Africa, the Caribbean, the Mediterranean and the Indochinese peninsula (Vietnam, Lao PDR, Cambodia). Its business in the other geographical areas (Asia, Latin America, Eastern Europe and the Balkans) will focus on selected core sectors which are in line with the areas of activity of French and AFD official development assistance: climate change, agribusiness, health, education and microfinance. PROPARCO’s aim is to focus on a strategy based on expertise and build comprehensive skills in all these sectors. It will be providing support via both direct investments and via banks or investment funds.

SUPPORTING A MICROFINANCE NETWORK A LEADER ON THREE CONTINENTS German-based ProCredit Group has built up one of the leading microfinance networks. It gathers twenty-two subsidiaries located in emerging and developing countries, particularly Africa, Latin America and Eastern Europe. Its core mission is to provide a range of productive credit and other banking services to micro, small and medium-sized enterprises, as well as to private clients with low and modest incomes. ProCredit’s innovative approach

is shaped by its business model as a socially responsible local bank seeking to combine transparency, effectiveness and profitability. Following the extension of its business area, PROPARCO allocated two successive a10M financings to this key partner, the first in equity, the second in subordinated notes. This investment aims to promote access to credit and savings for those that are excluded from the classic banking system.

> FIND OUT MORE ABOUT THIS PROJECT AT www.proparco.fr

In 2009, PROPARCO extended its activities to all developing countries.

DEVELOPING ELECTRICITY GENERATION FROM SUGAR CANE IN GUATEMALA Sugar is one of Guatemala’s main export products and the sugar industry is vital for the country’s economy. It also contributes to electricity generation: when sugar cane is harvested it is processed and used to produce renewable energy via cogeneration and consequently helps meet the country’s electricity needs. Pantaleon Sugar, the largest sugar producer in Central America, is an agribusiness group specialised in processing sugar cane to produce sugar, ethanol and electricity. PROPARCO

has joined other development institutions and invested $14M in the company to support its development (raise sugar and ethanol production in Guatemala, build a distillery in Nicaragua and increase cogeneration capacities in Guatemala). By financing Pantaleon, PROPARCO is supporting one of Guatemala’s key players in terms of employment and public revenue. The project will also reduce CO 2 emissions by an estimated 372 000 teq per year.

> FIND OUT MORE ABOUT THIS PROJECT AT www.proparco.fr

ANNUAL REPORT PROPARCO 2009 Metting the challenges of each region

In 2009, 40% of proparco’s commitments were in Africa.

HELPING A PANAFRICAN AIRLINE GROUP TAKE TO THE SKIES Africa’s air space is made up of small-scale carriers that are often in deficit and unreliable, yet the industry carries huge potential with growth rates above the global average. The Aga Khan Fund for Economic Development – a long-standing partner for PROPARCO – is implementing a project to create a pan-African aviation hub comprising three companies (Air Mali, Air Burkina, Air Uganda) within a regional agency called Celestair.

PROPARCO is supporting the project by providing $19.5M of long-term financing for the acquisition of nine aircraft. Celestair encourages airline companies to modernise and is helping to bring the sector up to the highest international standards for safety, quality and services. Developing high-quality airline infrastructure directly contributes to economic and social growth in Africa.

> FIND OUT MORE ABOUT THIS PROJECT AT www.proparco.fr

AFRICA: our PRIORITY Africa - boosted by its demography and urbanisation - has been experiencing strong growth for several years. The crisis has not had any deep effect on this. Although the crisis did not have any direct impact on Africa’s financial systems, 2009 was marked by a credit squeeze and a slowdown in activity in several countries. The weakness of Africa’s physical and financial infrastructure remains the main stumbling block to strong and sustainable growth on the continent. It is more than ever before a priority for PROPARCO to support growth in Africa. The company focuses its activities on the main engines of sustainable growth: • developing reliable and accessible infrastructure; • supporting local entrepreneurs ; • supporting bank and financial intermediation via banks and private equity investment ; • promoting social and environmental standards in the framework of sustainable growth. In 2009, PROPARCO’s commitments in Sub-Saharan Africa reached a415M and accounted for 37% of its total activity, i.e. a 48% rise compared to 2008. PROPARCO is the most Africa-oriented development finance institution in Europe.

PROPARCO’s financing mainly focused on supporting financial intermediation (investment funds, stock markets and banks) and infrastructure projects. For example, PROPARCO invested a 100M in Africa in the framework of the post-crisis initiative for infrastructure which aims to bridge the financing gap for private mega projects. Finally, PROPARCO set up the Investment and Support Fund for Businesses in Africa (FISEA), one of the main mechanisms of the French Initiative for Growth and Employment in Africa (launched in February 2008). FISEA makes equity investments in businesses, banks and investment funds. It has approved thirteen projects and invested a62.3M in its first eight months of activity.

today, 60% of africans are under 24 years old - uganda

ENHANCING FINANCIAL INFORMATION IN AFRICA A key criterion - and a security for an investor is to be able to assess the risk of an investment. Africa’s financial markets are not very well-known and not very developed. This type of information is consequently essential, yet the continent is neglected by rating agencies.

Global Credit Rating - a subsidiary of the agency Duff & Phelps - initially conquered the South African market, then extended its activities to Zambia, Zimbabwe, Nigeria and Kenya. It now publishes 60% of rating reports in Africa. Global Credit Rating now aims to develop its activity in West Africa and open

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an agency in Dakar. PROPARCO has taken a 10% stake in the agency’s capital in order to support its growth and give it greater credibility on this new market. PROPARCO is consequently helping both to improve the level of financial information in Africa and the way financial markets operate

ANNUAL REPORT PROPARCO 2009 Metting the challenges of each region

GROWTH AND EMPLOYMENT IN THE MEDITERRANEAN The Mediterranean is one of PROPARCO’s top priorities and it is continuing to develop its business in the region. To do so, it relies on a network of local financial partners and a newly expanded presence in the field with the opening of an office in Cairo. The Mediterranean region has to face the dual challenge of regional integration with its northern bank and needs for employment brought about by its young and swiftly growing population. The Union for the Mediterranean – an initiative launched by France – aims to provide a solution to these two challenges via major projects shared by both shores of the Mediterranean. PROPARCO is traditionally the most active bilateral development finance institution in the region. It has focused its financing on two priority areas (Turkey and the Maghreb region) and a core business: private equity investment.

PROPARCO is supporting 9 investment fund management teams in the Mediterranean.

In 2009, PROPARCO began to focus on its development in the Middle East (Egypt, Syria, Lebanon, Palestinian Autonomous Territories, Jordan...) via its traditional business in the region: private equity investment, the banking sector and mega industrial or infrastructure projects. For example, PROPARCO financed a major water supply project in the city of Amman in Jordan, the construction of a clinic in Tunisia and renewable energy projects in Turkey (wind, solar panels). In terms of private equity investment, the company shored up the capital of two of Lebanon’s largest banks, invested in the new fund of a team based in Beirut and, at the same time, continued to support its long-standing partners in Morocco. This year also saw the launch of Averroès Finance II, which is co-managed by PROPARCO and CDC Entreprises and follows on from the first fund of funds Averroès Finance. Averroès provides a basis for partnerships between players from the northern and southern Mediterranean and allows them to support private equity investment in the region.

TAILORING FINANCIAL PRODUCTS TO SMEs IN ALGERIA Algeria counts over three hundred thousand SMEs which are poorly served by the classic banking system. The lack of suitable financial solutions has led to a marked development of leasing which has the advantage of providing a simpler and faster solution than bank loans. PROPARCO has supported this sector by participating in the capital increase of Maghreb Leasing Algérie, the country’s largest

leasing company. This participation is equivalent to a2M and will allow the company to both develop its financing activities and comply with the regulation which has raised the minimum capital requirement for financial establishments. The project will help create employment, support growth in the region and make Algeria’s banking sector more competitive.

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FINANCING WATER SUPPLY IN THE CITY OF AMMAN IN JORDAN Jordan is one of the ten cities in the world to be the most affected by a water shortage. Cities are the first victims, particularly Amman whose inhabitants only have access to water twice a week. The best medium-term alternative for raising the amount of available water in the capital is to use water from the Disi aquifer in southern Jordan. PROPARCO and AFD have bridged the financing deficit of commercial banks caused by the global financial crisis to allow this water supply project to come into being.

PROPARCO and AFD consequently allocated two $100M loans for a project to convey water from Disi to Amman (320km away) thanks to the construction and operation of a drinking water supply system. 100 million m3 of water reserves will be withdrawn from the Disi fossil aquifer over the next 50 years. Ammanâ&#x20AC;&#x2122;s 2.5 million inhabitants will consequently have access to water. Some water resources which are currently overexploited will be preserved.

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ANNUAL REPORT PROPARCO 2009 Metting the challenges of each region

GREEN AND INCLUSIVE GROWTH IN ASIA, EASTERN EUROPE AND LATIN AMERICA PROPARCO promotes growth that meets both the climate challenge and reduces inequalities in all the other developing and emerging countries: Asia, Eastern Europe and Latin America. In 2009, PROPARCO extended its business area to all developing and emerging countries. PROPARCO’s mandate in these geographical areas - outside Africa, the Mediterranean, Caribbean and Indochinese peninsula - is in line with AFD’s mandate and France’s official development assistance policy. It involves supporting the private sector and promoting green and inclusive growth. PROPARCO’s financing in these regions aims to combine the two prerequisites for building a model of sustainable development: environmental balance and reducing inequalities.

In order to contribute to this global and long-term target, PROPARCO has chosen to focus its business on four specific sectors: • the fight against climate change; • the agribusiness industry, particularly on the topic of food security; • social sectors, health and higher education; • microfinance. These sectors already account for almost half of PROPARCO’s activity in its traditional geographical areas. In the climate sector, this year PROPARCO financed hydropower projects in Lao PDR and Pakistan and biogas projects in China. It also overhauled its climate strategy for Brazilian, Turkish and Indian banks. In the agribusiness sector, PROPARCO mainly supported industries that contribute to food security and the fight against climate change (eco-certified wood industry in Amazonia, sugar and bioethanol production in Guatemala). Several microfinance institutions were supported this year, particularly in Cambodia and Eastern Europe. Finally, in the social sectors, PROPARCO’s financing supported the construction of a hospital and a university campus network in Brazil.

PROMOTING HYDROPOWER DEVELOPMENT IN PAKISTAN Pakistan faces a growing electricity deficit, yet the country enjoys an unexploited hydropower potential capable of stabilizing the energy supply which is currently 70% thermal. Laraib Energy is developing Pakistan’s first private hydropower project. The New Bong Escape power plant is located 120 km from Islamabad. It has a capacity of

84 MW and will generate 540 GWh a year. This project is highly respectful of the environment: with no new dam, it will use water from the reservoir of an existing dam and will avoid 219 000 tonnes of CO2 equivalent emissions every year. Thanks to its long-term investment policy, PROPARCO was able to invest in this project which had

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been jeopardised by the crisis Pakistan’s electricity sector went through in early 2009. It has allocated a $26M loan which completed financing from the International Finance Corporation, the Asian Development Bank, the Islamic Development Bank and Pakistani banks.

REGIONAL INTEGRATION IN THE FRENCH OVERSEAS territorIES AFD Group has a specific mission to help strengthen the economies of the French Overseas Territories. This support is provided via operations to assist local authorities and banks or via guarantee fund management. PROPARCO finances business start-ups or development - either directly for private operators or

via bank intermediation - and helps build their competitiveness at the regional level. PROPARCO’s range of products is complementary to local banking products. In 2009, the company continued to support banking sectors in New Caledonia and French Polynesia.

From 2010, PROPARCO’s activities will be based on three cornerstones:

• The regional integration of private players; • Support for local banks via long-term refinancing or risk sharing; upport for innovative and structuring projects in the infrastructure sector • S(renewable energies, mega projects) or service sector.

DEVELOPING RICE PRODUCTION: REUNION ISLAND AND CAMBODIA REAP THE BENEFITS With 90% of cultivated land used for rice growing, Cambodia is one of the world’s largest rice producers. Although the country exports its domestic consumption surplus, it only gains a very low added value because the bulk of Cambodian paddy rice is processed and exported in neighbouring countries. At the same time, there has been heavy pressure on rice prices since 2008 which has led to serious difficulties for importing

countries to be supplied. This was the case for Reunion Island – where rice is a staple food – which experienced a serious food crisis in 2008. Soresum, a major player in Reunion Island’s mass marketing industry, wanted to invest in the Cambodian Golden Rice company in order to secure its supplies. The project, which is supported by $7M of PROPARCO financing, involves building and operating a new

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production and processing unit with a capacity to treat 50 000 tonnes of paddy rice a year. The project consequently has a dual impact: it is helping to create an organised industry in Cambodia and is developing the local production of thousands of farmers and traders. It is also securing Reunion Island’s rice supply and preserving jobs in the industry.

ANNUAL REPORT proparco 2009 Four priority sectors

FOUR PRIORITY SECTORS

PROPARCO focuses its activities on four priority sectors that contribute to growth and development. It finances basic infrastructure, supports business development, promotes widespread access to credit and helps combat climate change.

ANNUAL REPORT proparco 2009 Four priority sectors

SUPPORTING BUSINESSES It is difficult to obtain long-term financial resources on developing markets, both in terms of financial instruments and in terms of maturities or foreign currencies. Unfortunately, this situation has worsened with the current financial crisis. In order to make up for this lack of long-term financial resources and promote growth in South countries, PROPARCO supports business development by directly allocating long-term resources. PROPARCO SUPPORTS ALL TYPES OF ENTREPRENEUR:

• major industrial groups seeking to set up in business or develop in difficult areas; • major regional groups seeking to improve their governance and develop their activity ; • medium and large local enterprises that contribute to transferring skills or technologies, creating jobs and complying with environmental and social standards. The manufacturing, tourism and construction materials sectors have suffered badly from the global financial crisis. PROPARCO has fully played its countercyclical role by supporting these productive sectors and responding to a large number of financing requests. In 2009, the corporate finance activity reached €154M, including 42% in the Mediterranean. 2009 was also marked by a diversification in the business sectors financed. The construction materials and social sectors have

consequently now become new vehicles for creating growth. The agribusiness industry remains a core sector. The projects financed aim to maintain production potential and promote the development of market-oriented agricultural production, profitable farms, production diversification towards biofuels or the development of cogeneration. For example, in 2009 PROPARCO financed the development of a highly diversified sugar group (sugar, electricity produced from bagasse, ethanol produced from molasses) established in both Guatemala and Nicaragua. Moreover, the financing for social sectors (health and higher education) aims to support national public policies which, as they are only partially financed, rely on the private sector as an intermediary. For example, PROPARCO has financed an original project to combat cross-border animal diseases in China.

VIEWPOINT

How can African SMEs gain easier access to credit? B y Patr i ce H oppenot, Chair man and co -founder of Inves tisseur et Par tenaire pour le développement

“Promoters that want to set up and manage an SME and make it viable must have ambition, a sound project, a clear strategy, sufficient resources (with a sizeable amount in equity) to meet financial needs and real management skills. It is therefore a risky business that few investors or bankers accept to finance. The solution to the problem of SME financing consequently lies first and foremost in generally upgrading SMEs. Technical assistance allows SMEs to upgrade in order to have access to bank loans and private equity investments by professional investors. It is mainly provided to set up management accounting , executive recruitments, sales force organization and, more generally, strategy.” Extract from the article “Private equity investment in Sub-Saharan African SMEs” in the magazine Private Sector & Development, September 2009. > DOWNLOAD THE MAGAZINE AT www.proparco.fr

SUPPORTING YOUNG PROFESSIONALS TRAINING IN BRAZIL Only 20% of the 26 million 18-24 year olds in Brazil are enrolled in a higher education establishment, yet they can substantially improve their future income by getting a qualification. The Brazilian government is aware of the need to invest in this sector and has promoted private sector intervention as an effective complement to public services.

Anhanguera Educacional Participações (AESA) is the largest private listed higher education company in Brazil. AESA is a leader in the vocational training and higher education sectors and provides high-quality training for low-income students at an affordable cost. Today, it counts 250 000 students in its network of 54 university campuses and 450 training centres.

It receives 500 000 others in its 650 training centres. PROPARCO decided to earmark its first financing in Brazil’s education sector to support AESA’s growth strategy (new campuses and training centres) by allocating it a $12M senior loan alongside IFC and its German counterpart, DEG.

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FINANCING INFRASTRUCTURE Ineffective infrastructure is often seen as a stumbling block to the development of South countries. Reliable and accessible infrastructure is indeed essential for growth and the fight against poverty. One of PROPARCO’s core missions is to upgrade the quality of infrastructure and make it widely accessible. The company focuses its efforts on Sub-Saharan Africa and has also developed expertise in renewable energy projects, particularly in the major emerging countries. PROPARCO FINANCES INFRASTRUCTURE PROJECTS IN THE SECTORS OF :

• transport, in order to improve living conditions for urban dwellers and give businesses easier access to global markets; • telecoms, in order to fight against the digital divide; • e nergy, in order to make modern and clean energy available. During the 2009 financial crisis, PROPARCO received an enormous amount of financing requests due to the squeeze on banking sector resources and the subsequent need to complete finance plans for mega projects. Its business consequently more than doubled with commitments in this sector rising from €150M in 2008 to some €400M in 2009, including a €100M participation in the crisis-response initiative for infrastructure launched by the International Finance Corporation (World Bank Group). For example, PROPARCO

participated in projects such as the Enfidha airport in Tunisia, water conveyance to Amman in Jordan, the Ho Chi Minh City container terminal, the Djibouti port extension, as well as projects for power plants in Jordan, Pakistan and Lao PDR.

UPGRADING PORT INFRASTRUCTURE IN HO CHI MINH CITY Vietnam has seen sharp growth in its maritime trade in recent years However, its port infrastructure is now reaching saturation point, particularly in the region of Ho Chi Minh City. Port infrastructure is therefore one of the priorities of the modernisation plan launched by the local authorities which provides for the construction of six new container terminals. One terminal is being built 85 km from Ho Chi Minh City in Cai Mep by the company SSIT. It will be equipped with a large mooring

capacity, will be able to receive high-capacity ships (equivalent to a twenty-foot draught) and will raise the available transit capacity in the city. It will consequently become one of the country’s main commercial gateways. PROPARCO’s $15M participation in the project is part of a multi-donor financing scheme gathering the International Finance Corporation, FMO, KfW and the Infrastructure Crisis Facility. Commissioning is scheduled for early 2011.

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ANNUAL REPORT proparco 2009 Four priority sectors

PROMOTING ACCESS TO CREDIT 2009 was marked by a liquidity crisis in developed countries. With resources drying up, banks in developing countries had to resort to alternative sources of financing or scale down their activity. In the specific context of the financial crisis, PROPARCO played a strong countercyclical role by scaling up its lending activity for banks in emerging and developing countries and its investment activity in partner institutions. In 2009, PROPARCO’s activity with financial institutions reached some €445M of commitments in the form of loans and equity investments. The figure is up 10% compared with 2008 and underscores PROPARCO’s aim and capacity to pledge considerable amounts in a poor economic situation, while some other partner institutions sought to limit their portfolio expansion. This year was marked by a diversification of our activity, both in terms of products and geographical areas. Some €110M were allocated in the renewable energies sector which represents a 12% rise compared to 2008.

PROPARCO financing in 2009 will help secure or create 815 000 jobs.

Moreover, 2009 was a record year in terms of equity investments in credit establishments: over €45M were invested in capital in order to shore up the solvency of PROPARCO’s client financial institutions. The geographical breakdown of commitments highlights the scale of needs in Latin America (26%) and Asia (19%) and, at the same time, confirms that Africa is a priority for PROPARCO (31%). In 2009, PROPARCO relaunched its activity in the Dominican Republic (for an amount totalling $50M for local banks) which again underscores its aim to support the sector in a particularly unfavourable environment. Similarly, PROPARCO allocated a post-conflict line of credit in Sri Lanka in order to boost lending activities in the northeast of the country. It also subscribed to €10M of subordinated notes in a microfinance holding company of which it became a shareholder at the end of 2009. PROPARCO’s ambitions in terms of its financial clients are more than ever a core topic. The aim is to shore up its presence in Africa, continue its multi-product approach with a focus on equity investments and strengthen its capacity in terms of microfinance operations. PROPARCO is consequently seeking to support the banking and financial sector in the countries where it operates and strengthen the additional role that it is in a position to play.

Viewpoint

Why are banks reluctant to lend to SMEs? B y Pau l D err eumaux , Chair man and Chief Executi ve O fficer of Bank of Afr ic a Group

“Relations between banks and SMEs have always been very similar to those between an old couple who constantly blame each other yet have to live together... Banks, for their part, have at least three significant shortcomings. The first is their weakness in supervising their portfolios. In view of the understandably fragile nature of SMEs in terms of organization and forward-looking vision, bankers should closely follow firms’ day-to-day running, the relevance of their investments and the difficulties they meet. The second shortcoming stems from the fact > Download the magazine at www.proparco.fr

that banking teams lack a specific reference framework based on indepth experience of SME financing. Finally, the third shortcoming for banks is related to the institutional environment where deficiencies penalize banking activities. These difficulties reduce interest in SME financing further still and, at the same time, lead banks to impose stiffer conditions for their financing.” Extract from the article “The difficulties banks face in financing SMEs in Sub-Saharan Africa: who is to blame?" in the magazine Private Sector & Development, May 2009.

PROMOTING SUSTAINABLE FOREST EXPLOITATION IN AMAZONIA Brazil is home to 60% of the Amazonian Rainforest and has been suffering from serious deforestation for several decades. 17.5% of its initial forest surface area has now disappeared. Cikel Brasil Verde Madeiras is one of the main integrated forest groups in Brazil. In addition to exploiting three native Amazonian forests covering an area of 400 500 ha, Cikel stands out because it produces FSC ecocertified wood and as such is one of

PROPARCO’s financing in 2009 will help reduce CO2 emissions by 2,2 M teq every year.

the few players in Brazil to exploit forests in a sustainable manner. PROPARCO has decided to encourage Cikel’s model approach by financing its forest and industrial investment program for the next two years via a $20M senior loan. The project will reduce emissions by 550 000 M tons of CO2 eq every year and will support an industry that creates jobs and added value while at the same time maintaining forest cover.

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COMBATING CLIMATE CHANGE PROPARCO has been dedicating a large part of its activities to combating climate change for several years now. In 2009, PROPARCO earmarked €275M for climate change mitigation projects, i.e. roughly a quarter of its commitments for the year. Thanks to this financing, roughly 2.2 million tons of CO2 eq emissions will be avoided every year. PROPARCO enjoys technical expertise and references in each of the renewable energies that are commercially exploited today. For example, in 2009 PROPARCO financed wind farms, hydropower plants, a biogas project using waste from ethanol production, a sustainable forest plantation, a manufacturer of flat glass for the photovoltaic industry, a bagasse cogeneration unit and a sugar cane-based biothenal production unit. PROPARCO makes every effort to ensure that these skills are transferred to partner banks in the South. For example, in 2009 a standard product of special climate lines of credit was developed and allocated to five banks in Turkey, India and Brazil. The specific aim of these lines of credit is for banks to take ownership of the bilan carbone (carbon balance) tool developed by AFD which measures all the emissions that result from the projects financed. This tool is now applied to all projects directly financed by PROPARCO and assesses the impacts that the operations supported have on the climate.

PROPARCO has consequently shored up its position as a leader among Europe’s development finance institutions in terms of the fight against climate change. It has made it one of its priority sectors, particularly in the countries where it has recently begun to operate.

Viewpoint

What is the future of carbon finance? B y Paul de la G uér ivi ère , climate e xper t at PRO PARCO

“The failure of the Copenhagen Summit means it is very unlikely that the Kyoto Protocol will continue in its present form beyond 2012. This does not, however, mean the end for carbon finance which should continue in a fragmented form within regional markets (based on the model of the EU Emissions Trading System). This type of market is being studied by the United States, Japan, Korea, Australia, New Zealand and China. These regional systems are all partly linked up and should recognise offset credit in developing countries in a form similar to the carbon credits that are currently generated by the Clean Development Mechanism (under the Kyoto Protocol). Forest preservation will also be promoted with the creation of forest credits.”

ANNUAL REPORT PROPARCO 2009 Matching investors'financial needs

ANNUAL REPORT proparco 2009 Matching investors'financial needs

Matching

INVESTORSâ&#x20AC;&#x2122; FINANCIAL NEEDS PROPARCO provides a full range of financial products tailored to the specific needs of investors in South countries: access to long-term financing, products to hedge or reduce certain risks, products tailored to specific challenges face by developing countries.

ANNUAL REPORT PROPARCO 2009 Matching investors'financial needs

Investing in EQUITY Banks and businesses – faced with the problem of resources drying up – are seeking alternative financing. PROPARCO provides solutions by making equity or quasi-equity investments in the capital of businesses. In 2009, PROPARCO made twenty-one equity investments for an amount totalling €74M. It notably became a major shareholder of a major operator in the microfinance sector in Eastern Europe. The other direct investments were made in Africa. Direct investments particularly helped support the banking sector which accounts for 74% of amounts invested this year. By providing equity products, PROPARCO promotes consolidation in the financial sector, the emergence of regional players and helps improve procedures. PROPARCO consequently provides a response to the constraints currently met by African banks by offering them the resources they require for their positioning or expansion abroad. In addition to its participation in other funds, the Investment and Support Fund for Businesses in Africa (FISEA) held by AFD and managed by PROPARCO makes direct investments. In 2009, these investments supported more innovative projects in Africa in the sectors of microfinance, innovative financial services and agribusiness.

PROPARCO’s financing in 2009 will help support the growth of 110 000 businesses.

SUPPORTING THE AGRIBUSINESS INDUSTRY IN EGYPT Wadi Holdings, an Egyptian company, is one of the biggest producers of chicks and poultry feed in Egypt and Sudan. It has also diversified its activity towards major export products, such as olives and glass. The company stands out for the way in which it pays particular attention

to sanitary issues. This allowed it to successfully resist the impacts of avian flu in 2006. Wadi aims to pursue its strong growth and will need to make sizeable investments in the future. PROPARCO has taken a $3M equity stake in the company’s capital in order to support its development. By making

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this investment, PROPARCO has decided to support a player that has model practices in terms of health standards. It is consequently helping to secure the agribusiness industry in Egypt on which 600 000 farmers rely. The project will also have an impact by supporting export activities and growth.

SUPPORTING PRIVATE EQUITY INVESTMENT PROPARCO is a forerunner in private equity investment in some regions. It provides long-term support to independent local fund management teams which galvanise private and public investment. PROPARCO - via its private equity investment activity can scale up the impact of its action to boost employment and wealth creation in the economies it supports. The funds in which PROPARCO has invested have themselves invested some €1.2bn in 247 businesses. The year was marked by the launch of two funds to support Africa and the Mediterranean. FISEA was launched on 20 April 2009 and is one of the main mechanisms of the French Initiative for Growth and Employment in Africa. The annual target of €50M has already been surpassed with thirteen investments approved this year for an amount totalling €62M. Averroès Finance II, which follows on from Averroès Finance, aims to support private equity investment and attract private funds in the Mediterranean region. €100M have been invested in funds, including 75% in Sub-Saharan Africa. These investments have supported sectors that are essential for Africa’s development: support for small and medium-sized enterprises, agribusiness, basic infrastructure and innovative financial services. In the other regions, the funds supported are active in combating climate change and help improve the governance standards of the businesses they invest in.

Kenya

VIEWPOINT

What approach does the Fanisi Fund take to private equity investment? B y Ay i si M akatiani , Fanisi venture c apit al f und manager

“SMEs have limited access to the financing they need. This is the main stumbling block to the development of the sector in East Africa. Unlike micro-enterprises which have a successful finance model [via microfinance] and major corporates whose results attract and secure new equity investments, SMEs very often have to resort to investors or financial institutions that are not specialists in this sector. SME managers also lack knowledge of the business world and financial markets. Fanisi Capital combines an SME financing activity with a capacity building activity for managers. The aim is to turn East African SMEs into competitive players in the region. In May 2009, Fanisi made its first equity investment in a Kenyan software company for an amount of $2.5M. Fanisi’s investment will support the company’s development and will also help it build its capacity to address inhouse challenges, such as the need to strengthen its management”. In 2009, FISEA participated in Fanisi’s first closing for an amount totalling $10M, alongside its Norwegian and Finnish counterparts. > FIND OUT MORE ABOUT THE FANISI PROJECT AT www.proparco.fr

MEDIUM AND LONG-TERM LENDING PROPARCO’s lending activity - like its equity activity - is based on long-term investment. The company supports responsible investors over the long term by tailoring products and repayment conditions to the constraints of its clients and the depth of the relevant market. PROPARCO’s products are complementary to those of local or international private banks. Indeed, the mission of development institutions, including PROPARCO, is to be niche players by providing financial products that are often neglected by the private sector. Their activities can consequently vary enormously from one market to another. In addition to cofinancing or joint risk-sharing mechanisms with other European development agencies, since 2007 PROPARCO has benefitted from a sub-participation agreement with AFD which allows it to increase its lending capacity. PROPARCO can consequently provide loans ranging

PROMOTING FINANCING FOR MODEL ENVIRONMENTAL PROJECTS IN BRAZIL

Banco Fibra is a young Brazilian bank whose core activity is to finance SMEs. It now has some 1 100 clients. PROPARCO has supported this young and budding bank by allocating it a $30M senior loan, including $10M of AFD subparticipation. This line of credit is earmarked to finance investments in model environmental projects: clean energy, green transport (ethanol), reducing greenhouse gas emissions and protecting the Amazon Rainforest. This is the first line of credit that PROPARCO has directly allocated in Brazil. It will also allow the bank to calculate the carbon balance of its investments. >FIND OUT MORE ABOUT THIS PROJECT AT www.proparco.fr

between €5M and €100M (the average amount is €13M), with maturities of between five and twenty years. In order to support a client over such a long period, PROPARCO needs to be able to adjust its lending operations which consequently include mechanisms to reduce or extend maturities depending on exogenous parameters (commodity prices, rainfall, etc.). This need for flexible tools has led PROPARCO to develop a wide range of loan products which now include senior loans, subordinated or participation loans and an increasing number of junior products.

ANNUAL REPORT proparco 2009 Matching investors'financial needs

DEVELOPING PRODUCTS IN LOCAL CURRENCY A great many projects require financing in local currency. Without such financing, clients have to face a foreign exchange risk that markets lacking sophistication sometimes simply cannot manage. The loan maturities on offer are also not long enough for the planned investments. Local financial markets in many countries are not developed enough to be in a position to offer loan maturities that are long enough for the planned investments. PROPARCO - in partnership with other funders - is consequently working to develop local currency markets. PROPARCO was a forerunner in providing products denominated in local currency by developing guarantee tools in Africa’s Franc Zone almost twenty years ago and, subsequently, in all the countries where it is active. For example, it was the first to guarantee bond issues denominated in local currency in Africa.

Beyond its guarantee operations, PROPARCO set up a mechanism two years ago which allows it to develop direct loan products in local currency. Since 2007, PROPARCO has been a shareholder of TCX - a multi-donor initiative that allows its members to offer swaps in exotic currencies. Moreover, AFD issues bonds in a variety of currencies and directly intervenes on markets. PROPARCO consequently has resources available in CFA francs and South African rand. Finally, PROPARCO directly seeks resources in local currency from commercial or development banks which in 2009 allowed it to offer its clients CFA francs, South African rand, Indian rupees and Tunisian dinars.

PROPARCO offers loans ranging from €5M to €100M.

LONG-TERM FINANCING FOR A SENEGALESE BANK IN LOCAL CURRENCY

Senegal has the second largest banking system in West Africa after Côte d’Ivoire. It is also highly competitive - over fifteen banks share 550 000 accounts - yet the rate of access to banking services remains low (under 10%). The Banque Internationale pour le Commerce et l’Industrie au Sénégal (BICIS), the country’s third largest bank with 17% of the market, is BNP Paribas’ subsidiary in Senegal. The bank is specialised in the private customer, institutional and corporate segments and seeks

long-term resources in order to shore up its balance sheet and back the maturity of its resources to that of its loans. In 2009, PROPARCO granted BICIS an FCFA6.7bn line of credit with a seven year maturity. By providing long-term financing in local currency, PROPARCO has helped the bank avoid a foreign exchange risk and is giving Senegalese businesses the resources they need to invest in their growth. It is consequently helping to develop the private sector and employment in the country.

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SELECTING PROJECTS FOR

THEIR IMPACTS PROPARCOâ&#x20AC;&#x2122;s day-to-day business combines three skill areas which together shape its activity. The first involves measuring and managing the developmental impact of the projects it finances. The second resides in its constant commitment to social and environmental responsibility. Since PROPARCO is a bank, the third aims to manage risks on its operations.

ENHANCING IMPACT MEASUREMENT The very first criterion in project selection is the contribution it will make to development. The second is financial profitability which will guarantee the sustainability of any project. PROPARCO’s first impact measurement tool supports the financing decision prior to the investment. It is used by most European development finance institutions which makes it possible to harmonise results measurement and implement benchmarking procedures. The indicators that assess the contribution a private project makes to development include current public revenue, net currency effects, the number of jobs created, technology and know-how transfer, social effects (health, education, continuous training), compliance with environmental standards, positive environmental impacts in terms of reducing greenhouse gases, energy saving and the use of renewable energies. Agence française de développement Group has extended the use of this decision-making tool to its financing for projects under the Investment and Support Fund for Businesses in Africa (FISEA) hosted by AFD and managed by PROPARCO. Moreover, in order to have a more comprehensive understanding of the impact of all its operations, PROPARCO creates and publishes a series of sectoral indicators in common with AFD.

This process is in line with PROPARCO’s commitment to be accountable for its contribution to the overall efforts made under France’s official development assistance policy and allows it to measure the effectiveness of its projects. Finally, capitalisation studies are conducted on certain projects financed by PROPARCO or certain sectors of activity. They mainly take two forms: the first involves long-term evaluation studies conducted in the field several years after the implementation and development of the project. These studies make it possible to capitalise on experience and the operations that have been implemented with the aim of improving practices. The second is the very reason for the existence of the magazine published by PROPARCO - Private Sector & Development – which it launched in 2009. This magazine gathers and compares the opinions of specialists, experts and practitioners with one topic per issue. It is a platform for exchanges and reflection where ideas can be compared and headway can be made on these topics.

PROPARCO’s FINANCING AND COFINANCING IN 2009 WILL CONTRIBUTE TO:

55 000

Connecting people to an electricity supply network

6 million

Connecting people to a telecoms network

Supporting the CSR processes businesses of

4 000 Securing or creating 815 000 jobs

Reducing annual greenhouse gas emissions tons of CO2 eq by

2.2 million

Boosting State revenues by

€1 380M per year

annual report proparco 2009 Selecting projects for their impacts

THE IMPACTS OF MOBILE TELEPHONY: LESSONS LEARNED IN HAITI PROPARCO chose to evaluate the developmental effects of the boom in the mobile phone sector in Haiti - one of the most vulnerable countries on the planet - well before it was struck by the earthquake in January 2010. The lessons learned from this study are a sign of encouragement and hope that must be promoted. The mobile phone industry has seen rapid expansion in developing countries over the past decade. Although private investors have often been behind its development, donors have also contributed. For example, in 2006 - a time when the subscriber

rate was very low in Haiti - PROPARCO supported the launch of a third operator on the island, Digicel Haiti. PROPARCO and AFD commissioned an economic and social assessment of the project from BearingPoint and the Fafo Institute.

Digicel’s arrival in Haiti had extremely considerable macroeconomic impacts that are worth mentioning:

53% of Digicel’s investments since 2006 have gone to the local economy (civil engineering, real estate, communication, etc.), i.e. roughly $140M . There have also been sizeable impacts on employment: in addition to the group’s 1 000 employees, the company indirectly provides an additional income of $24 per month to roughly 60 000 street vendors. Finally, Digicel has become the biggest taxpayer in Haiti (15%) and directly or indirectly made a 20% contribution to GDP growth between 2005 and 2007. The social impact on users is more difficult to measure: The poorest populations continue to be excluded from mobile phone services, particularly in rural areas. Mobile phones are mainly used for social purposes in order to remain in contact with friends and relatives. Finally, the recent earthquake highlights how important mobile phones are in situations of emergency. Landlines were down, but thanks to mobile phones populations were warned or were able to warn their friends and relatives on the spot or from abroad. They also made it easier to coordinate rescue work. Mobile phones will be playing a key role in Haiti’s reconstruction.

PROPARCO has financed a great number of mobile operators in Africa, latin America and Asia for an amount totalling €200M.

ANNUAL REPORt PROPARCO 2009 Selecting projects for their impacts

PROMOTING SOCIAL and ENVIRONMENTAL RESPONSIBILITY (CSR) PROPARCO has integrated CSR into both its in-house activities and the projects it finances. PROPARCO’s operations are subject to an assessment of the environmental and social risks they are likely to cause. The aim of this process is to help its partners improve the environmental and social quality of their projects. AFD Group has set up a special team for this which is in charge of: • defining the environmental and social due diligence to be conducted for projects; • advising project teams and all partners on how to conduct this due diligence; • building partnerships with other donors. Through its financing, PROPARCO aims to disseminate CSR practices and raise its clients’ awareness of them, particularly banks which are vehicles for the development of CSR in businesses. It promotes and supports players that implement responsible practices by providing a range of technical and financial solutions tailored to their needs.

PROPARCO’s financing in 2009 will help support the CSR processes of 4 000 businesses.

COMPLIANCE AND RISK MANAGEMENT PROPARCO is a financial institution and as such is subject to banking regulations. The Company has implemented a series of mechanisms that allow it to manage its operations and the inherent risks : • applications for financing are examined by three different committees prior to the financing decision. When they are submitted to these committees, the applications are examined by different independent departments which give an opinion on the project. These opinions concern whether the applications are in line with PROPARCO’s mandate and its requirements in terms of CSR, as well as the level of financial risk they imply for the company. The financial situation of beneficiaries is monitored throughout the duration of the financing;

• AFD’s Permanent and Compliance Control Department coordinates and supervises the internal control and makes a second-level control on the risk of non-compliance. It controls the due diligence conducted by the operational departments in terms of anti-money laundering and combating the financing of terrorism; • PROPARCO is also audited by AFD’s Inspectorate General Department which is in charge of periodic controls on the compliance of operations, the level of risk as well as controls on compliance with procedures.

MEETING THE NEED FOR BUSINESS UPGRADING Businesses in developing countries sometimes lack capacities which can lead to poor performance. Their need for financing may be widely recognised, but it is also necessary to meet their needs in terms of technical assistance. In the framework of FISEA, AFD has decided to earmark €5M to finance consultant missions (to improve information systems, marketing, human resources, etc.) in order to support the businesses in which the fund will be investing. In 2009, €150 000 were allocated to the AfricInvest Financial Sector Fund for technical assistance provided to the financial institutions in its portfolio.

A RISING NUMBER OF "CLIMATE" PROJECTS PROPARCO’s activities to combat climate change are constantly rising. In 2009, fourteen projects totalling €310M were financed. These projects now concern all four of PROPARCO’s operational departments (banks, corporates, infrastructure, private equity): biogas-based cogeneration projects or renewable energy equipment manufacturing; hydropower or biogas production plants; lines of credit earmarked to finance global public goods (fight against climate change and major pandemics, biodiversity preservation). These lines of credit meet general eligibility and reporting criteria. The increasing importance PROPARCO gives to projects to limit environmental impacts has also been underscored with the creation of a new cross-functional position this year devoted to climate change and the appointment of correspondents in each department.

All projects that have significant impacts in terms of greenhouse gas emissions are subject to a systematic estimation of their carbon balance. PROPARCO estimates the amount of gross emissions caused by the project (for example, relating to fossil fuel combustion to produce electricity or heat), the reduction of emissions (particularly for projects to switch to fuels with lower emissions or heat recovery projects) and the emissions avoided compared to a benchmark scenario (specifically for projects to produce electricity using renewable energy).

ANNUAL REPORt PROPARCO 2009 Operational and financial results

ANNUAL REPORt proparco 2009 Operational and financial results

OPERATIONAL AND FINANCIAL

ReSULTs

2009 was a new year of growth for PROPARCO which fully played its countercyclical role during the financial crisis. Its strong financial results underscore the soundness of its economic model based on long-term financing for the private sector in developing economies.

ANNUAL REPORt PROPARCO 2009 Operational and financial results

OPERATIONAL ReSULTS In FY 2009, PROPARCO’s total commitments in loans and equity investments reached €1 121.2M, up 42% on 2008 (€789.4M). In FY 2009, PROPARCO’s total commitments in loans and equity investments reached €1.1bn, up 42% on 2008 (€789.4M). This extremely good result can be explained by a combination of several factors. First, there was a sharp rise in sub-participation investments with AFD as a result of closer partnerships being forged (€262.8M of commitments in 2009) and cofinancing with the other European and multilateral development institutions (€100M of commitments). Second, the geographical expansion of PROPARCO’s activities led to an increase in operations in Asia and Latin America. Finally, the 2009 international BREAKDOWN OF COMMITMENTS BY PRODUCT (in €M)

financial crisis created a number of investment opportunities in the financial sector, particularly in the major emerging countries. It is also worth noting that PROPARCO made a €62.3M equity investment on behalf of the FISEA fund (Investment and Support Fund for Businesses in Africa launched in April 2009 and one of the three cornerstones of the French Initiative for Growth and Employment in Africa).

GEOGRAPHICAL BREAKDOWN OF TOTAL PORTFOLIO (LOANS AND EQUITY INVESTMENTS) IN FOREIGN COUNTRIES (as % OF TOTAL PORTFOLIO)

1 121

in 2009

789

in 2008

263

44%

Sub-Saharan Africa

598

140

in 2007

370

in 2005

216

in 2004

85 33

401

in 2006

30 111

17% Asia

29%

33 54

Mediterranean and Middle East

Multi-country

5 18 193

252

254

410

LOANS AND GUARANTEES PROPARCO EQUITY INVESTMENTS LOANS ON BEHALF OF THIRD PARTIES

458

655

FRENCH OVERSEAS Territories AFD SUB-PARTICIPATION fisea

Latin America and Caribbean

The geographical breakdown of the portfolio indicates that Sub-Saharan Africa remains the top area for PROPARCO’s activities and accounts for 44% of the company’s loans and equity investments.

EQUITY INVESTMENTS Investment approvals PROPARCO approved twenty-two equity investments in 2009 - against seventeen in 2008 - which represents an investment volume of €111.4M, i.e. an average of €5.1M per investment (volume up by over 12.5% compared to the previous year): • fifteen direct investments totalling €59.0M were authorised in 2009 (against eight in 2008), i.e. an average of €3.9M per project. Ten of these projects were in Africa, in the banking sector (Algeria, Kenya, Lebanon and Tanzania), the agribusiness sector (Cameroon, Egypt and Morocco) and the financial sector (one project in several countries in the region and one in South Africa) and industry (Tunisia). Asia benefitted from two investments in the microfinance sector in Cambodia. One investment was approved in the Latin America-Caribbean region in the urban infrastructure sector in Jamaica. Finally, two investments were approved in a microfinance institution operating in different geographical areas. • seven equity investments totalling €52.4M were approved in investment funds in 2009 (against nine in 2008), i.e. an average of €7.5M per project. Infrastructure was the main sector targeted by these funds and represented 48% of approvals,

the remaining 52% concerned multi-sectoral funds. Their activities are concentrated in Africa (five equity investments) and Asia (two equity investments). Subscriptions in 2009 (authorised in 2009 or before) concern five investment funds, three financial companies, two banks, two companies in the agribusiness sector and, finally, a leasing company. The FISEA fund operates exclusively in Sub-Saharan Africa and this year approved thirteen projects for an amount totalling €62.3M, i.e. an average of €4.8M per project. The typological breakdown is as follows: six projects concern direct investments totalling €12.8M in the banking sector (Congo and Sudan), the microfinance sector (Côte d’Ivoire and one in several countries in the region) and the agribusiness sector (Kenya and Madagascar). Six other projects concern equity investments in pan-African investment funds for an amount totalling €47.8M in the sectors of finance, microfinance, SMEs and agribusiness. Finally, a project was approved for a €1.7M mezzanine debt transaction with an agribusiness in Kenya.

Equity portfolio structure At 31 December 2009, the gross value of PROPARCO’s equity portfolio and other shareholdings stood at €269.4M (including operations on behalf of third parties) and included 92 shareholdings in nine banking establishments, forty-six investment funds, nineteen financial establishments or insurance companies, ten industrial or commercial companies,

three hotels and five infrastructure and mining companies. Total provisions for equity investments reached €5.9M, i.e. 2.3% of the gross portfolio and 3.4% of paid-up investments, excluding investments made on behalf of third parties.

Geographical and sectoral breakdown Paid-up capital, including on behalf of third parties, stood at €185.7M at 31 December 2009 against €144.5M at 31 December 2008.

The graphs below show the sectoral and geographical breakdown of paid-up investments.

Infrastructure

French Overseas Territories

50%

27%

Investment funds

Multi-country

26%

Sub-Saharan Africa

28%

Financial sector

13%

Corporates

EQUITY INVESTMENTS: SECTORAL BREAKDOWN (PORTFOLIO OF PAID-UP INVESTMENTS)

21%

Mediterranean and Middle East

21% Asia

EQUITY INVESTMENTS: GEOGRAPHICAL BREAKDOWN (PORTFOLIO OF PAID-UP INVESTMENTS)

LENDING OPERATIONS Approvals and disbursements Forty-seven loans were approved during FY 2009 totalling €947.5M in gross approvals against €683.5M in 2008, i.e. an average €20.2M per transaction (against €14.2M in 2008).

This increase in the average size of transactions was made possible thanks to €262.8M of AFD sub-participations in 2009. Total loan disbursements stood at €500.4M.

Sectoral breakdown The percentage of loans granted to banking establishments stood at 44% against 60% in 2008. The amount of loan commitments in this sector (€417.6M) included €30M of financing granted to banking establishments in the French Overseas Territories. Commitments in the infrastructure and mining sector (€398M) rose sharply compared to 2008 (€133.3M), particularly thanks to two mega projects in Jordan and an investment in a multilateral debt fund in Sub-Saharan Africa. They account for 42% of the total amount of loans approved against 19% in 2008. Commitments in the corporate sector in 2009 remained at a high level at €131.9M (against €143.4M in 2008) and accounted for 14% of approved financing (against 21% in 2008).

44%

Financial sector

42%

Infrastructure

14%

Corporates

LOANS: SECTORAL BREAKDOWN (AS % OF TOTAL COMMITMENTS)

Geographical breakdown 18%

Asia

21%

Latin America and Caribbean

33%

Sub-Saharan Africa

28%

Mediterranean and Middle East

LOANS: GEOGRAPHICAL BREAKDOWN (AS % OF COMMITMENTS IN FOREIGN COUNTRIES)

Loan commitments in foreign countries covered twenty-five countries, the largest being Jordan (€113.6M), Brazil (€92.1M), South Africa (€61.9M), Turkey (€81.5M) and India (€55.3M). These figures do not include multi-country commitments. Moreover, PROPARCO granted two financings to the French Overseas Territories: one in French Polynesia and one in New Caledonia both for €15M. Sub-Saharan Africa - PROPARCO’s traditional business area - remained the main sector for loan activity with 32.8% of approvals in foreign countries in 2009. The most important operations in this region concerned two banks in South Africa, a loan in the water sector in Namibia and an investment in a multilateral debt fund for infrastructure financing in Sub-Saharan Africa.

ANNUAL REPORt proparco 2009 Operational and financial results

OUTSTANDING LOANS as at 31 december 2009

Sectoral breakdown Gross outstanding loans at 31 December 2009 (excluding loans on behalf of third parties) totalled €1 386.1M in gross value (€1 029.8M at year end 2008) with 55.9% for loans to banking establishments and 44.1% to non-financial corporates. Outstanding amounts from banking establishments were made up of 160 loans granted to 65 clients for a total of €774.9M at 31 December 2009 (€594.8M at year end 2008). The remaining outstanding amounts totalled €611.2M (€435M at year end 2008) broken down into the infrastructure and mining sector (€415.6M) and corporates (€195.6M). It was made up of 105 loans granted to 79 clients. Outstanding amounts from banking establishments in foreign countries, excluding the French Overseas Territories, stood at €576.4M at 31 December 2009. Outstanding amounts from clients in the infrastructure and mining sector and corporate clients accounted for €413.6M and €179.0M respectively.

Geographical breakdown As we can see from the following graph, outstanding loans (excluding the French Overseas Territories) were quite equally divided between PROPARCO’s geographical areas. The main beneficiary countries for outstanding loans were, in descending order: Turkey, Kenya, Tunisia, South Africa and Morocco and represent almost 55% of the total when taken together.

56%

Financial sector

30%

Infrastructure

14%

Corporates

LOANS: SECTORAL BREAKDOWN (AS % OF TOTAL OUTSTANDING LOANS)

Latin America and Caribbean

30%

Mediterranean and Middle East

16% Asia

47%

Sub-Saharan Africa

LOANS: GEOGRAPHICAL BREAKDOWN FOREIGN COUNTRIES (AS % OF OUTSTANDING AMOUNTS IN FOREIGN COUNTRIES)

BALANCE SHEET as at 31 December 2009 (in thousands of euros) ASSETS

31/12/2008

31/12/2009

RECEIVABLES FROM FINANCIAL INSTITUTIONS

967 366

1 076 150

SHORT-TERM

107 849

47 368

related parties

107 664

46 439

185

929

LONG-TERM

859 517

1 028 782

related parties

260 206

248 332

TRANSACTIONS WITH NON-FINANCIAL INSTITUTIONS

448 747

637 306

28 334

34 138

829

10 364

209 131

253 432

588

470

669

1 909

1 384

1 305

1 159

4 156

179

405

TOTAL ASSETS

1 629 291

1 984 626

LIABILITIES

31/12/2008

31/12/2009

988 120

1 296 355

SHORT-TERM

462

related parties

462

LONG-TERM

988 115

1 295 893

related parties

981 556

1 292 093

OTHER LIABILITIES

100 608

119 676

29 095

35 369

ACCRUALS AND DEFERRED INCOME

3 847

11 370

related parties

2 489

7 156

on behalf of third parties

on behalf of third parties BONDS AND OTHER FIXED INCOME SECURITIES INVESTMENTS AND OTHER LONG-TERM SECURITIES

on behalf of third parties INTANGIBLE ASSETS PROPERTY, PLANT AND EQUIPMENT OTHER ASSETS

related parties PREPAYMENTS AND ACCRUED INCOME

related parties

BORROWINGS OWED TO FINANCIAL INSTITUTIONS

on behalf of third parties

28 613

32 529

EQUITY

508 103

524 696

CAPITAL SUBSCRIBED

485 330

65 281

PROVISIONS

share premium LEGAL RESERVE RETAINED EARNINGS INCOME FOR THE YEAR

TOTAL LIABILITIES

1 948

2 990

12 783

20 825

23 593

1 629 291

1 984 626

ANNUAL REPORt proparco 2009 Operational and financial results

INCOME STATEMENT as at 31 December 2009 (in thousands of euros) INCOME STATEMENT

31/12/2008

31/12/2009

INTEREST AND SIMILAR INCOME

68 753

73 769

ON OPERATIONS WITH FINANCIAL INSTITUTIONS

42 059

44 515

12 021

7 955

26 683

29 255

-1

INTEREST AND OTHER SIMILAR CHARGES

-36 434

-39 308

ON OPERATIONS WITH FINANCIAL INSTITUTIONS

-36 434

-39 308

related parties

-35 629

-39 174

INCOME FROM VARIABLE INCOME SECURITIES

5 390

6 435

FEE INCOME

4 394

11 566

FEE EXPENSE

-524

-466

517

-4

-440

NET BANKING INCOME

42 092

51 556

OTHER ADMINISTRATIVE EXPENSES

-16 896

-22 353

related parties

-12 663

-15 490

-31

-326

Gross operating income

25 165

28 877

COST OF RISK

-11 137

-3 551

OPERATING INCOME

14 028

25 326

GAINS OR LOSSES ON PROPERTY AND EQUIPMENT

9 226

7 350

INCOME FROM ORDINARY ACTIVITIES BEFORE TAX

23 254

32 676

ALLOCATIONS/RECOVERIES OF FGBR

3 993

EXCEPTIONAL ITEMS

1 378

-256

EXCEPTIONAL REVENUE

1 378

EXCEPTIONAL EXPENSES

-256

-7 800

-8 827

20 825

23 593

related parties ON OPERATIONS WITH NON-FINANCIAL INSTITUTIONS ON BONDS AND OTHER FIXED INCOME SECURITIES

OTHER BANKING OPERATING INCOME ITEMS

related parties OTHER BANKING OPERATING EXPENSE ITEMS

ALLOCATION TO DEPRECIATION AND AMORTISATION

CORPORATE INCOME TAX

NET INCOME

APPENDIX

COMMITTED AND PROFESSIONAL TEAMS at 1st March 2010

DEPUTY CHIEF EXECUTIVE OFFICER

Philippe BASSERY Assistant: Flora TOTA

Organisation and it support Marie-Paule SIMONNET

CREDIT AND PORTFOLIO DEPARTMENT Hélène TEMPLIER

FINANCE AND ADMINISTRATION DEPARTMENT

LEGAL DEPARTMENT

Marie SENNEQUIER

Marianne SIVIGNON-LECOURT

Deputy: Emmanuelle DROUIN Assistant: Anita PEREZ

Assistant: Catherine MURE

Investment Officers: Dorothée DECKERT Jean-Benoît du CHALARD Iskander EZZERELLI Alexandra GEORGANDAS Reza HASSAM DAYA Astrid JARROUSSE Manuel MARTINS Olivia REVEILLIEZ Didier ROUSSEL Jean-Baptiste SABATIE Marie-Violaine BIANCARELLI Danièle THEZE

Investment Officers: Jérémy BRAULT Mathieu BRELET Cédric MARTIN

Administrative Officers: Annie DESCOINS Diane NGO

Administrative Officers: Didier AMIOT Nicole ARTICO Maïté CHAPRON Evelyne WAGNER

Deputy: Chrystelle GUERIN Assistant: Isabelle GILLET Corporate lawyers: Christine AVRIL POTTIER Christel BOURBON-SECLET Emilie CANAVESE Fariza CHALAL David FARDEL Olivier FOURCADE Sandrine GAU Peter GLAUSE Sophie VERMOREL Administrative Officers: Pascale DENISE Valérie MARCUS Delphine QUEFFELEC

annual report PROPARCO 2009 Appendix

CHIEF EXECUTIVE OFFICER

Luc RIGOUZZO Assistant: Ia GEBAROWSKI

DEPUTY CHIEF EXECUTIVE OFFICER

Laurent DEMEY Assistant: Flora TOTA

Communication Benoît VERDEAUX

CROSS-FUNCTIONAL POSITIONS

BANKS AND FINANCIAL MARKETS

Emerging countries and carbon finance: Paul de la GUERIVIERE Environmental Officer: Odile CONCHOU

INFRASTRUCTURE AND MINING

CORPORATES

Assistant: Marie-Thérèse ROCHE

Assistant: Isabelle NIANGANE

Marie-Hélène LOISON

Jérôme BERTRAND-HARDY

Stéphanie LANFRANCHI

Investment Officers: Bérengère BASSET Jean-Sébastien BERGASSE Myriam BOUSLAMA Delphine FRENOUX Rahim HARIS Laureen-Astrid KOUASSI Sebastian MENTHONNEX Elodie PARENT Maria PENA Nahed SAAB

Investment Officers: Kamal DADI Isabelle LAURENCIN Adeline LEMAIRE Guillaume MORTELIER Anne-Sophie RAKOUTZ Pierre ROUSSEAU Matthew SAVILLE Christophe SCALBERT Aglaé TOUCHARD

Investment Officers: Manelle AIT SAHLIA Xavier DARRIEUTORT Charlotte DURAND Alice LUCAS Stéphanie MOUEN Pierre-Alain PACAUD Véronique PESCATORI Nathalie YANNIC

Investment Officers: Guédi AINACHE Guillaume BARBEROUSSE Virginie BLEITRACH Julie GONNET Emilie-Gang HUANG Caroline POUJOL Anne RORET Thomas SKURTIS Denis SIREYJOL

Amélie JULY

Technical assistance: Cyril RENAULT

PRIVATE EQUITY

Administrative Officer: Sandra GIRARD

International Network

Deputy: Emmanuelle MATZ Assistant: Elisabeth NGUYEN

Administrative Officer: Catherine LEPERE

Assistant: Catherine BAL

PROJEcTS APPROved iN 2009

58 Country

ANNUAL REPORT PROPARCO 2009 Appendix

Sector

Project

Beneficiary

Amount

Algeria

Finance and banking

Equity investment to support the development of a company

Corporate

$2M

Brazil

Finance and banking Finance and banking Forests and forestry Education Health

Line of credit to a bank to refinance loans granted to clients Line of credit to a finance and investment bank Loan approved to finance a forestry and industrial program Loan approved to finance the acquisition and construction of a campus Loan to finance the extension and modernisation of a hospital

Financial establishment Financial establishment Corporate Corporate Corporate

$50M $30M $20M $8M $15M

Cambodia

Agriculture Finance and banking Finance and banking

Refinancing for a shareholder loan in an agribusiness plant Loan and equity investment in a microfinance institution Loan approved to support a bank’s growth

Corporate Financial establishment Financial establishment

$7M $5.2M $10M

Cameroon

Agriculture

Equity investment in a company during a capital increase

Corporate

FCFA1.5bn

Chad

Telecoms

Loan approved to support the expansion of a mobile phone network

Corporate

FCFA6bn

China

Energy Animal health

Loan for the construction and development of a biodigestor Loan approved for the extension of a vaccine production line

Corporate Corporate

$3.4M $7.5M

Dominican Republic

Finance and banking Transportation Finance and banking

Line of credit for the long-term expansion of a bank’s portfolio Loan approved for the construction and renovation of a boulevard popular with tourists Line of credit approved to finance export activities in the health and energy sectors

Financial establishment Corporate Financial establishment

$25M $20M $25M

Egypt

Infrastructure Agribusiness

Loan approved to finance the construction of a hotel complex Equity investment in an agribusiness

Corporate Corporate

$23M

France

Finance and banking

Investment in the subsidiary of an African bank offering remittance services for migrants

Financial establishment

$1M

French Polynesia

Finance and banking

Line of credit for a bank’s long-term financing

Financial establishment

$15M

Guatemala

Agribusiness

Loan approved to finance a production increase in a sugar company

Corporate

$20M

India

Finance and banking Finance and banking Energy Infrastructure

Loan to a bank to finance its projects and development Line of credit earmarked to finance a bank’s environmental projects Loan to finance a wind farm Equity investment in an investment fund

Financial establishment Financial establishment Corporate Investment fund

$20M $50M $7M $10M

Indonesia

Finance and banking

Line of credit approved to develop a microfinance activity

Financial establishment

$20M

Jamaïca

Infrastructure

Loan and equity investment approved to finance the extension of a highway

Corporate

$50M

Jordan

Energy Energy

Loan approved to finance the construction of a combined cycle gas power plant Loan approved to improve water supply for the city of Amman

Corporate Corporate

$50M $100M

Kenya

Finance and banking

Equity investment in the capital of a bank

Financial establishment

$7.7M

Lao PDR

Energy

Loan approved to build the extension of a hydropower plant

Corporate

$40M

Lebanon

Finance and banking Finance and banking

Line of credit to a bank to strengthen its equity and growth Participation in the capital increase of a bank

Financial establishment Financial establishment

$15M

Mauritius Island

Finance and banking

Loan approved for a bank to finance its balance sheet growth

Financial establishment

$6M

Morocco

Agribusiness

Equity investment in an agribusiness group

Corporate

MAD35M

Namibia

Water

Loan for a seawater desalination plant

Corporate

$40M

New Caledonia

Finance and banking

Line of credit approved for a bank’s long-term refinancing

Financial establishment

$15M

Nigeria

Telecoms

Loan approved to finance new telecom towers

Corporate

$25M

Pakistan

Energy

Loan approved to finance the construction of a hydropower plant

Corporate

$26M

Senegal

Finance and banking

Loan to restore a bank’s solvency

Financial establishment

FCFA6.7bn

South Africa

Finance and banking Finance and banking Finance and banking Finance and banking

Equity investment in a rating agency Line of credit approved to finance a bank’s growth Line of credit earmarked to finance export lines Line of credit approved for the development of a bank’s activity

Corporate Financial establishment Financial establishment Financial establishment

$1.5M $35M $30M $8M

Sri Lanka

Finance and banking

Line of credit earmarked to boost a bank’s economic activity

Financial establishment

$10M

Syria

Cement

Loan for the construction and operation of a cement plant

Corporate

$30M

Tanzania

Finance and banking

Equity investment in the capital of a bank

Financial establishment

$4.2M

Togo

Finance and banking

Line of credit approved for a bank to refinance private sector projects

Financial establishment

$20M

Tunisia

Construction / Industry

Equity investment in an SME specialised in road transport

Corporate

TND5M

Turkey

Energy Finance and banking Energy

Loan approved to finance the creation of a wind farm Line of credit approved in the framework of the climate facility Loan to finance glass manufacturing for a solar panel company

Corporate Financial establishment Corporate

$11.5M $50M

Uganda

Finance and banking Finance and banking

Line of credit approved for a bank’s long-term refinancing Line of credit approved to refinance long-term corporate operations

Financial establishment Financial establishment

$15M $30M

Vietnam

Textiles Transportation

Loan approved to finance the creation of new production units Loan to finance the construction of a port terminal

Corporate Corporate

$16M $15M

Multi-country

Finance and banking Finance and banking Finance and banking Finance and banking Infrastructure Finance and banking Multi-sector Finance and banking

Equity investment in an investment fund specialised in SMEs Line of credit to a European vehicle financing loans in Africa Participation in an investment fund specialised in infrastructure projects Participation in an African investment fund Loan approved for an African infrastructure financing facility Loan and equity investment for the development of a microfinance activity Participation in an Asian investment fund Investment in a fund specialised in financing SMEs in Africa

Investment fund Financial establishment Investment fund Investment fund International organisation Financial establishment Investment fund Financial establishment

$12.5M $20M $8M $15M $100M $20M $10M $10M

$3.2M

$15M

$20M

annual report PROPARCO 2009 Appendix

key SOCIAL FIGURES at 31 December for each year

STAFF BREAKDOWN BY SOCIO-PROFESSIONAL CATEGORY (accounting allocation) in 2009

in 2008

in 2007

98 72 56

8 EXECUTIVES

employees

EVOLUTION IN NUMBER OF LOCAL EXECUTIVES (OPERATIONAL STAFF)* *Executives recruited locally in PROPARCO’s regional offices 7

in 2009 in 2008 in 2007

6 4

PERCENTAGE OF STAFF TRAINED DURING THE YEAR in 2009 in 2008 in 2007

97 % 90 % 94%

NUMBER OF TRAINING HOURS PER PERSON TRAINED 57

in 2009 in 2008 in 2007

48 45

PERCENTAGE OF WOMEN, PARTICULARLY MANAGERS (headquarters) in 2009

59% 60%

in 2008

60% 60%

in 2007

53%

0% total

management

AFD GROUP NETWORk Abidjan

Bangkok

Casablanca

east jerusalem

WEST AFRICA

SOUTHEAST ASIA

Tel.: (225) 22 40 70 40 Fax: (225) 22 44 2178

Tel.: (66) 2 663 60 90

Morocco, MAURITANIa, ALGeRIa

Palestinian autonomous territories

afdbangkok@afd.fr

Tel.: (212) 522 29 53 97 Fax: (212) 522 29 53 98

Tel.: (972) 2 54 00 423 Fax: (972) 2 54 00 227

Bangui

afdcasablanca@afd.fr

afdjerusalem@afd.fr

NIGERIA

CENTRAL AFRICAN REPUBLIC

Cayenne

Fort-de-France

Tel.: (234) 9 46 01 911 Fax: (234) 9 46 01 913

Tel.: (236) 21 61 03 06 Fax: (236) 21 61 45 78

FRENCH GUIANA, GUYANA, SURINAME

MARTINIQUE, PETITES ANTILLES

afdabuja@afd.fr

afdbangui@afd.fr

Tel.: 05 94 29 90 90 Fax: 05 94 30 63 32

Tel.: 05 96 59 44 73 Fax : 05 96 59 44 88

Accra

BEIJING

afdcayenne@afd.fr

afdfortdefrance@afd.fr

GHANA

CHINA

Tel.: (233) 21 77 87 55 Fax: (233) 21 77 87 57

Colombo

Hanoi

SRI LANKA, MALDIVES

VIETNAM

afdaccra@afd.fr

Tel.: (86) 10 84 51 12 00 Fax: (86) 10 84 51 13 00 afdpekin@groupe-afd.org

Tel.: (94) 11 250 23 20 Fax: (94) 11 250 52 23

Tel.: (844) 38 23 67 64 Fax: (844) 38 23 63 96

Addis-Abeba

Beirut

afdcolombo@afd.fr

afdhanoi@afd.fr

ETHIOPIA, ERITREA, SUDAN, SOMALIA

LeBANon

Tel.: (961) 1 420 192 Fax: (961) 1 611 099

Conakry

Ho Chi Minh city

GUINea, SIERRA LEONE

VIETNAM

afdbeyrouth@afd.fr

Tel.: (224) 30 41 25 69

Tel.: (84 8) 38 24 72 43 Fax: (84 8) 35 20 69 14

proparcoabidjan@proparco.fr

Abuja

Tel.: (251) 11 442 59 01/02 Fax: (251) 11 442 59 04 afdaddisabeba@afd.fr

Brasilia

afdconakry@groupe-afd.org

afdhochiminhville@afd.fr

Algiers

Brazil

Cotonou

ALGeRIa

Tel.: (55) 61 33 22 43 20 Fax: (55) 61 33 21 43 24

BeNIN

Islamabad

Tel.: (229) 21 31 34 53 Fax: (229) 21 31 20 18

PAKISTAN

Tel.: (213) 21 69 43 00 Fax: (213) 21 48 41 20 afdalger@afd.fr

afdbrasilia@afd.fr

Brazzaville

afdcotonou@afd.fr

Tel.: (92) 51 201 15 16 Fax: (92) 51 201 15 14 afdislamabad@afd.fr

Amman

RePUBLIc of CONGO

Dakar

JORDAN

Tel.: (242) 281 53 30 Fax: (242) 281 29 42

SeNeGAL, CAP VERde, GAMBIa, GUINEAU-BISSAU

Istanbul

afdbrazzaville@afd.fr

Tel.: (221) 33 849 19 99 Fax: (221) 33 823 40 10

Tel: (90) 212 283 31 11 Fax: (90) 212 283 31 51

Bujumbura

afddakar@afd.fr

afdistanbul@afd.fr

Tel.: (962) 6 46 04 703 Fax: (962) 6 46 04 705 afdamman@afd.fr

TURkey

Antananarivo

BURUNDI

MADAGASCAR

Tel.: (257) 22 25 59 31 Fax: (257) 22 25 59 32

Dar Es Salaam

Jakarta

TANZANIa

INDONeSIa

afdbujumbura@afd.fr

Tel.: (255) 22 21 98 866

Tel.: (62) 21 25 50 23 00 Fax: (62) 21 25 50 23 23

Tel.: (261) 20 22 200 46 Fax: (261) 20 22 347 94 afdantananarivo@afd.fr

cairo

afddaressalaam@afd.fr

afdjakarta@afd.fr

Bamako

egypt

Djibouti

MALI

Tel.: (20) 2 2735 17 88 Fax: (20) 2 2735 17 90

DJIBOUTI

Johannesburg

Tel.: (253) 35 22 97 Fax: (253) 35 48 09

Southern africa AND MADAGASCAR

afddjibouti@afd.fr

Tel.: (27) 11 540 71 00 Fax: (27) 11 540 71 17

Tel.: (223) 20 21 28 42 Fax: (223) 20 21 86 46 afdbamako@afd.fr

proparcoJohannesbourg@afd.fr

annual report PROPARCO 2009 Appendix

> More information on the office’s web portal through www.proparco.fr Kabul

Mexico city

Ouagadougou

Santo-Domingo

AFGHANISTAN

MEXIco

BURKINA FASO

Tel.: (93) 797 32 32 35

Tel: (52) 55 52 81 17 77

afdkaboul@afd.fr

afdmexico@afd.fr

Tel.: (226) 50 30 60 92 Fax: (226) 50 31 19 66

DOMINICAn RePUBLIc, BAHAMAS, CUBA, JAMAica

Kinshasa

Moroni

DEMOCRATIC REPUBLIC OF CONGO

Tel.: (243) 99 86 82 598 Fax: (243) 99 99 75 381 afdkinshasa@afd.fr

afdouagadougou@afd.fr

Tel.: (809) 547 12 89 Fax: (809) 381 05 92

COMORoS

Papeete

afdstdomingue@afd.fr

Tel: (269) 773 29 10 Fax: (269) 773 22 88

french POLYNesia

afdmoroni@afd.fr

N’Djamena

Tel.: (689) 54 46 00 Fax: (689) 54 46 01

Saint-Pierre

afdpapeete@afd.fr

Tel.: 05 08 41 06 00 Fax: 05 08 41 25 98 agence@iedom-spm.fr

Lagos

CHAD

Phnom Penh

NIGERIA

Tel.: (235) 252 70 71 Fax: (235) 252 78 31

CAMBODia

Tel.: (234) 1 2717151

afdndjamena@afd.fr

Tel.: (855) 23 426 360/ 426 036 Fax: (855) 23 426 243

GABON, SAO TOME & PRINCIPE

Nairobi

AFDPhnomPenh@afd.fr

Tel.: (241) 74 33 74 Fax: (241) 74 51 25

Tel.: (254) 20 271 12 34 (254) 20 271 10 58 Fax: (254) 20 271 79 88

Libreville

afdlibreville@afd.fr

Lomé

EaST africa

afdnairobi@groupe-afd.org

Pointe-à-Pitre

SAINT-PIERRE & MIQUELON

Sanaa YeMEN

Tel.: 00 (967) 1 448 308 Fax: 00 (967) 1 448 306 afdsanaa@afd.fr

GUADELOUPE

São Paulo

Tel.: 05 90 89 65 65 Fax: 05 90 83 03 73

BRazil

afdpointeapitre@afd.fr

Tel.: (55) 11 25 32 47 51 Fax: (55) 11 31 42 98 84

TOGO

New Delhi

Tel.: (228) 221 04 98 Fax: (228) 221 79 32

south ASIa

Port-au-Prince

Tel.: (91) 11 23 79 37 47 Fax:(91) 11 23 79 37 38

HAiTI

Tunis

Tel.: (509) 22 45 40 07 Fax: (509) 22 45 07 02

TUNISIa

afdlome@afd.fr

Luanda

afdnewdelhi@afd.fr

afdportauprince@afd.fr

afdsaopaulo@groupe-afd.org

Tal.: (216) 71 861 799 Fax: (216) 71 861 825

ANGOLA

Niamey

Tel.: (244) 222 333 309 Fax: (244) 222 372 771

NIGER

Port-Louis

Tel.: (227) 20 72 33 93 Fax: (227) 20 73 26 05

MAURitius

Vientiane

Tel.: (230) 213 64 00 Fax: (230) 213 64 01

LAO pdr

afdluanda@afd.fr

Mamoudzou

afdniamey@afd.fr

afdportlouis@afd.fr

afdtunis@afd.fr

Tel: (856) 21 24 32 95 Fax: (856) 21 24 32 98

MAYOTTE

Nouakchott

Tel.: 02 69 64 35 00 Fax: 02 69 62 66 53

MAURITANIa

Rabat

Tel.: (222) 525 25 25 Fax: (222) 525 49 10

Morocco

Yaoundé

Tel.: (212) 537 63 23 94 Fax: (212) 537 63 23 97 afdrabat@afd.fr

CAMEROoN, CENTRAl aFRICAn RePUBLIc, EQUATORIAL GUINea

Saint-Denis

Tel.: (237) 22 22 00 15 Fax: (237) 22 23 57 07

afdmamoudzou@afd.fr

Maputo

afdnouakchott@afd.fr

MOZAMBIQUE

Noumea

Tel.: (258) 21 30 43 00 Fax: (258) 21 30 37 47 afdmaputo@afd.fr

New CALeDONIa, VANUATU, south pacific insular states

Mata-Utu

Tel.: (687) 24 26 00 Fax: (687) 28 24 13

WALLIS & FUTUNA

afdnoumea@afd.fr

Tel.: (681) 72 25 05 Fax: (681) 72 20 03 afdmatautu@afd.fr

ReUNION, French southern and antartic lands

Tel.: 02 62 90 00 90 Fax: 02 62 21 74 58 afdstdenis@afd.fr

afdvientiane@afd.fr

afdyaounde@afd.fr : PROPARCO offices

PROPARCO COORDINATION Raphaëlle de Maisonneuve and Benoît Verdeaux

GRAPHIC DESIGN AND CREATION 28, rue du Faubourg Poissonnière 75010 Paris – www.noise.fr Editing and coordination: Lionel Bluteau. Assistant: Jeanne Sophie Camuset. Art Direction: Dorothée Thomassin and Marion Pierrelée. Typographic design: Julien Desperiere, Adrien Ampuy. Photoengraving: RVB Editions. Printed by: Vision Prod’

PHOTO CREDITS COVER: Getty images / Alexander Nesbitt page 4 : Nicolas Fornage. Pages 6-7 : Jean-Pierre Barral. Page 8 : Dominique Fradin. Page 9 : Dominique Fradin. Page 11: Dominique Fradin. Page 12 : Vincent Joguet. Pages 14-15 : PROPARCO Pages 18-19 : Nicolas Fornage. Page 20 : Grégory Scopélitis. Page 21 : Benoît Verdeaux. Page 22 : Virginie Bleitrach. PAGE 23 : Nicolas Fornage. PAGE 24 : Eric Thauvin. PAGE 25 : Diwaco. PAGE 26 : Nicolas Fornage. PAGE 27 : Grégory Scopélitis. PAGES 28-29 : Tim Montorfani. PAGE 31 : AESA. PAGE 33 : Emilie-Gang Huang. PAGES 34-35 : Chantal Régnault. PAGE 36 : Didier Gentilhomme. PAGE 37 : Benoît Verdeaux. PAGES 38-39 : Emilie-Gang Huang. PAGES 40-41 : Nicolas Fornage. PAGE 42 : Benoît Verdeaux. PAGE 43 : AFP Photo / David Goldman. PAGE 44 : Emilie-Gang Huang. PAGE 45 : Eric Thauvin. PAGES 46-47 : Jean-Pierre Barral. PAGES 54-55 : Chantal Régnault. This report has been printed using vegetal and non-mineral ink. Vegetal inks for publishing mainly use soya and colza and have several advantages: they use renewable resources (sunflower, colza, soya and linseed oils), using them reduces carbon dioxide emissions and a comparative analysis between mineral oils and vegetable oils shows that the latter are easily biodegradable.

Legal deposit: April 2010

Publications annual report 2009

All our publications and films can be downloaded at www.proparco.fr, under Publications

PRIVATE SECTOR & DEVELOPMENT MAGAZINE

Annual report

2009

151, rue Saint-Honoré - 75001 Paris Tel.: +33 1 53 44 31 08 - Fax: +33 1 53 44 38 38 www.proparco.fr

Films

WEBSITE Visit our website: www.proparco.fr

PROPARCO

Films about projects financed by PROPARCO (5 minutes long)

Publications annual report 2009

All our publications and films can be downloaded at www.proparco.fr, under Publications

PRIVATE SECTOR & DEVELOPMENT MAGAZINE

Annual report

2009

151, rue Saint-Honoré - 75001 Paris Tel.: +33 1 53 44 31 08 - Fax: +33 1 53 44 38 38 www.proparco.fr

Films

WEBSITE Visit our website: www.proparco.fr

PROPARCO

Films about projects financed by PROPARCO (5 minutes long)