Supporting jobs

The private sector’s capacity to create jobs makes it an essential contributor to SDGs. Guaranteeing the development of quality jobs to the whole working-age population while facilitating gender equality is a major challenge that Proparco contributes to via each of its financings. With the projects signed in 2021, 1,423,800 jobs should be supported within a 5 years, i.e. a 77% progression vs 2020. Excluding multi-country projects, 67% of supported jobs in the next 5 years will come from client projects located in low-income countries (378,000 jobs) and lower-middle-income countries (360,000 jobs). 117,600 direct jobs should be created and/or maintained within 5 years, including 44% jobs held by women; the percentage is as much as 60% in low-income and lower-middle-income countries.

In 2021, more than 1.4 million jobs supported thanks to client projects, 460,000 of which in fragile countries Job quality rising globally

Through client projects signed in 2021, 1,423,800 jobs are expected to be supported within 5 years by our counterparties and their value chains. In line with Proparco’s positioning, 67% of supported jobs within 5 years are expected from client projects located in lowincome or lower-middle-income countries, excluding multi-country projects, with 460,000 in fragile countries. 53% of supported jobs through projects signed in 2021 are expected in Africa, excluding multi-country projects.

117,600 direct jobs supported, including 33,300 created jobs: 2 figures in progression

Thanks to the projects signed in 2021, 117,600 « direct » jobs should be created and/or maintained within 5 years by our clients themselves or, in the case of investment funds, by investee companies: This represents a 31% increase vs 2020 (89,700). Excluding multi-country projects, 59% of these jobs are found in low-income or lower-middle-income countries. In 2021, one in four direct jobs supported by a signed project corresponds to a job creation; this ratio rises to one job in three in Energy, Digital and Infrastructure sector and for Equity investments. Proparco draws on three complementary indicators to evaluate the quality of jobs within its clients. Results for projects signed in 2021 (excluding investment funds) are as follows: • For 90% of projects (80% in 2020), workers benefit from social protection for themselves and their families, beyond that covered by local regulation; the percentage reaches 100% for projects located in fragile and/or low-income countries. • For 56% of projects (64% in 2020), salaries are above those usually received in the region; • Non-discrimination policies have been defined in 85% projects (78% in 2019).

The volume of supported jobs as high as 167% of the adjusted target

The evolution of expected results in terms of jobs supported by projects signed since 2017 is charted below. For the comparison to be relevant, the analysis has been presented excluding atypical projects. The chart specifies objectives as defined prior to the health crisis for 2021 and for the 2020-2022 period, within the guidelines of our 2020-2022 strategy. Adjustments have been made to account for the effect of the health crisis: The adjusted 2021 target has been calculated in relation to the volume and sectoral breakdown of projects effectively financed in 2021. Results in 2021 correspond to 167% of the adjusted target, thanks to the « Banks and financial institutions » sector performance with two projects cumulating 427,000 jobs.

Atypical projects

PROJECTS SIGNED IN

Number of jobs supported within five years

4,834,000

427,000

2017

+ 336,000(1)

978,000

2018

+410,000(2)

1,208,000

2019

803,000

2020

1,424,000 1,616,000

Adjusted target 852,000 Achieved in 2020-2021 2,227,000

2021 Objective for 2021 Cumulated objective for 2020-2022

(1) In 2018, the Jumo project contributed to one quarter of supported jobs within 5 years. (2) In 2019, the ETG group contributed to one quarter of supported jobs within 5 years.

Loan In Madagascar, more than 300,000 supported jobs thanks to a 10 M€ subordinated loan in favour of the leading financial partner of the Madagascan economy.

In 2021, Proparco expanded its support to BNI Madagascar, a key partner of AFD Group with whom it shares ambitious objectives regarding the financing of businesses, notably SMEs and projects contributing to the fight against climate change. Thanks to this « Tier II » loan – a powerful tool in creating jobs and supporting all the value chain – 318,300 jobs should be supported within 5 years.

A 20 MUSD investment to support medium-sized enterprises in Thailand and in the Mekong region

Through a 20 MUSD investment in the Lombard Asia V fund, targeting medium-sized enterprises in Thailand and in the Mekong region operating in various industries like health, agribusiness and distribution, Proparco is supporting job creation and sustainable development. Almost 19,000 created and/or maintained jobs are expected within 5 years in the fund’s investee companies.

Equity investment

51,700 direct jobs occupied by women within 5 years

Thanks to the projects signed in 2021, some 51,700 direct jobs occupied by women will be supported within 5 years, i.e. 63% more than in 2020 (31,800), in line with the increase in the total number of direct jobs supported in 2021. Women represent 44% of direct jobs supported within 5 years by projects signed in 2021 (vs 35% in 2020), 60% of direct jobs supported in low-income and lower-middle income countries and 67% of direct jobs supported in the Eastern Asia and Pacific region – this figure is driven by the two Textile Industry projects in Vietnam financed in 2021, Leading Star and Scavi, each reporting an expected 80% in direct jobs held by women within five years.

Within 5 years, at least 50% of jobs held by women in 39% of our clients

Women should represent within, 5 years, at least 50% of the workforce within 39% of our clients (33% in 2020). Excluding multi-country projects, three quarters of supported direct jobs held by women through projects signed in 2021 are expected, within five years, in lowincome or lower-middle-income countries; the percentage reaches 83% in these geographies in terms of direct job creations which should be occupied by women.