40 years of Proparco - Press Kit

40 YEARS OF ACTION FOR DEVELOPMENT Proparco Press Kit I september 2017

– © Luca Laurenti

“1977–2017. We are pleased and proud to be celebrating Proparco’s 40th anniversary this year.”

40 YEARS OF HISTORY through which Proparco – created by the Caisse Centrale de Coopération Économique, which later became the AFD – has served as the link between the private sector and development, growing into one of Europe’s leading development finance institutions.

40 YEARS OF ACTIONS that now span 80 countries, with the aim of supporting private-sector businesses in projects that promote economic growth, spur local development, and fuel the transition to a low-carbon world that is more equitable and sustainable.

40 YEARS OF PROJECTS proving that the private sector can make a major contribution to sustainable development.

The private sector is the leading creator of jobs and economic growth. Businesses account for 90% of jobs in the developing world, and are behind many of the innovative systems that improve access to electricity, healthcare, and education.

They are often the main driver of technological progress in the Southern Hemisphere, thus helping to catalyze sustainable development. And through the taxes they pay, they provide necessary funds to governments for implementing development-oriented public policies.

For the past 40 years, Proparco has been supporting responsible businesses ranging from local entrepreneurs all the way to regional banks. We have been carefully attuned to their changing needs over the past four decades, adapting our financing and

operating methods accordingly. Our goal has consistently been to support businesses’ growth and expansion when local markets are unable to.

Looking ahead, an ambitious roadmap awaits with the implementation of the Sustainable Development Goals, the Addis Ababa Action Agenda for financing development, and the Paris Climate Agreement. These international objectives not only open new horizons, but they also require us to step up our efforts to encourage businesses to work with us. At the request of the French President, we have committed to more than doubling our financial commitments and tripling the impact of our actions for creating jobs, fostering innovation and climate awareness, and promoting access to essential services, all by 2020.

Today many businesses strive to innovate, create decent jobs, adopt best-in-class environmental and social standards, invent new, responsible business models, and lay the foundations of an economy serving a global community. And those businesses are increasing in number. At Proparco, we intend to offer growing support to such businesses by providing financing solutions and expertise, as well as by drawing on third-party resources to amplify the impact of our work. AFD can call on businesses in advanced economies – especially French companies and investors – that are increasingly interested in markets and consumers in the developing world and that intend to fully contribute to their partners’ development.

Proparco Press Kit - 40 years of development I september 2017

Rémy Rioux Grégory Clemente

40 years of growth Staff:

Projects:

750

200

Over private sector projects financed in the past decade

men over and women in 2017 over

12

40

in 2010

employees in 1990

Businesses providing the revenue that governments need to carry out effective economic development policies:

E140 millions

in net tax revenue contributed in 2016.

Customers:

65%

In 2016, Proparco helped of its customers improve their environmental and social practices.

450 280 117 over

in 2016

in 2010

in 2000

Annual commitments (in million euros)

Commitments:

2 000

ramping up to meet the target of

E2 billion

1 500 1 000

in annual commitments by 2020.

500 0

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Proparco Press Kit - 40 years of development I september 2017

40 years of history

1977 1990

Status changed to a financial company approved by the French banking authorities, enabling Proparco to operate via equity, but also via loans and guarantees, as well as through consultancy and advisory services for the arrangement of deals.

1977 Creation of the Société de Promotion et de Participation pour la Coopération Economique (Proparco) by the Caisse Centrale de Coopération Economique (CCCE), which became AFD in 1998.

With a share capital of 10 million French francs (€1.5 million), 100% held by CCCE, its mandate was to finance the private sector in the franc zone.

Share capital increase from €21 million to €34 million (140 million to 225 million French francs). Entry of public and private shareholders, financiers and industries from the North and South: Aga Khan Fund for Economic Development (AKFED), BNP Paribas, Coface, GDF Suez and Natixis.

1992 Creation of the association of European Development Finance Institutions (EDFI). Proparco becomes a member.

2009 - Extension of Proparco’s geographical area of operations to all countries eligible for development assistance.

- Launch of the magazine Private Sector & Development.

- Creation of the Investment and Support Fund for Businesses in Africa (FISEA), held by AFD and advised by Proparco.

2011 2004 Creation of European Financing Partners (EFP) with nine other EDFIs and the European Investment Bank (EIB), a mutual fund dedicated to financing the private sector in African, Caribbean and Pacific (ACP) countries.

Creation of the Interact Climate Change Facility with AFD, EIB and ten other EDFIs: a mutual fund dedicated to financing private sector operations in the South in renewable energies and energy efficiency in line with the AFD group “climate” strategy, started in the mid 2000’s.

2016 At the Annual Committee in December Proparco’s new 2017-2020 strategy was adopted. By doubling its funding in order to reach 2 billion euros by 2020, Proparco aims to triple its impact on development (job creation, fight against global warming, access to essential goods and services, helping businesses with E&S practices, promoting innovation).

2017 Proparco Press Kit - 40 years of development I september 2017

1977~2017, 40 years of development.

1977~1987

1997~2007 1987~1997

2007~2017 Proparco’s history is reflected in the geographical reach of our work. We have strong roots in the French Overseas Territories and in Africa, which still accounted for 95% of our outstanding amounts in 1998. We have also built up a network of regional offices across the African continent. But that doesn’t mean we don’t operate in other parts of the world as well – in 1996 we began work in Southeast Asia,

and in the 2000s we expanded our efforts into the rest of Asia, Latin America and the Middle East.

Today we operate in 80 countries around the world covered by our 11 regional offices: Abidjan (1980), Casablanca (1992), Johannesburg (1994), Nairobi (1994), Bangkok (2004), Lagos (2007), Sao Paulo (2007), New Delhi (2008), Douala (2011), Mexico (2011) et Istanbul (2013).

Proparco Press Kit - 40 years of development I september 2017

2017

IN PROPARCO CELEBRATES ITS 40TH BIRTHDAY TWO EVENTS IN PARIS IN SEPTEMBER 19 September: An exceptional Investors’ Club conference sponsored by the President of France will be held at the Centre Pompidou. This year, the annual Proparco event will bring together business representatives and financing partners to discuss cross-sector innovation and startups. It will also mark the official launch of the AFD’s second Digital Africa Challenge, after which Bruno Le Maire, French Minister for the Economy and Finance, will conclude the proceedings (to confirm).

Registration mandatory: please contact presse@proparco.fr

20 September: A conference at 5 pm at Agence Française de Développement entitled “Between uncertainty and resilience: companies in vulnerable and crisis countries”. The event will gather development experts and economists to debate the role of the private sector in fragile states and how it can be assisted. > Registration (the conference will be held in French)

TWO BOOKS AND AN EXHIBITION REVIEWING A 40-YEAR RECORD OF SERVING DEVELOPMENT An anniversary book highlighting 40 projects that depict a portion of our history and offering contributions by five exemplary figures on the key development issues: – PRIVATE SECTOR > Financing sustainable companies: the real drive of African development

By Lionel Zinsou, French-Beninese economist and co-president of the Africa France foundation.

– FINANCE > Lowering barriers to entry is key to financial innovation

By Ahmed Abdelkefi, a Tunisian economist whose work focuses on the financial sector; co-founder of Tuninvest-Africinvest.

– CLIMATE > Tackling global warming through international cooperation among funding providers

By Alain Grandjean, économiste, fondateur et associé de Carbone 4.

– EMPLOYMENT AND GENDER > Boosting growth and development by promoting female employment

By Essma Ben Hamida, Tunisian entrepreneur; co-founder of Enda Tamweel, a microfinance institution.

– FRAGILE COUNTRIES > The private sector in fragile countries: what role for the DFIs?

By Paul Collier, professor of economics and director of the Centre for the Study of African Economies at the University of Oxford.

You can obtain a copy of the book by contacting us at presse@proparco.fr

Proparco Press Kit - 40 years of development I september 2017

A book on Proparco’s history by François Pacquement, Project Manager, History and Strategic Thinking, AFD, published by Karthala.

« This book shows how an effort to promote the private sector on the fringe of development assistance took shape under a unified governance structure spanning public- and private-sector organizations from North and South alike. »

You can obtain a copy of the book by contacting us at presse@proparco.fr

A roadshow illustrating Proparco’s mission with a selection of projects carried out with private-sector organizations. Photos, descriptions and key figures will together highlight the wide geographic and thematic range of Proparco’s work. The show can be seen on 19 September at the Centre Pompidou and on 20 September at the AFD head office, and subsequently at Proparco’s various regional offices.

Proparco Press Kit - 40 years of development I september 2017

FINANCING THE PRIVATE SECTOR TO BOOST DEVELOPMENT: PROPARCO’S EXPERIENCE These past 40 years of history, actions and projects have strengthened Proparco’s conviction that supporting private investment is a winning solution to the challenges of sustainable development and climate change From the Addis Ababa Conference to the Paris Agreement, the international community has unanimously recognized the vital connection between private sector activity and achieving the goals of sustainable development and climate change mitigation.

The private sector creates 9 out of every 10 jobs in the developing countries.

The private sector is far and away the number-one driver of growth and employment. Through its investments, Proparco helps create decent jobs in the formal sector, while focusing in particular on gender equality and increasing the proportion of women in the jobs created or supported.

THE IMPACTS OF PROPARCO In

2016 Proparco financing made it possible: • To create or maintain 142,000 jobs directly at the organizations it financed.

• To create or maintain 732,000 jobs indirectly at the organizations it financed.

• To give 2 million people access to microcredit.

• T o promote gender equality. Women make up 47% of the workforce at Proparco-financed banks, businesses, infrastructure operators and investment funds.

By the year

2020 Proparco is committed:

• To supporting 1.7 million jobs directly and indirectly per year.

ON THE GROUND A video on Mali’s first work-study hotel school, which began operating in Bamako in 2015 with backing from Proparco. “The school grew out of the need to close a gap”, explains Mossadeck Bally, the founder and CEO of the Azalaï Hotel Group.

“We realized we couldn’t find young people who already had basic hotel training, so we decided to tackle the problem on our own, found a school and train young people ourselves.” And it works.

Report from India on the beneficiaries of Sonata, a microfinance lender supported by Proparco. Access to microcredit can contribute to the liberation and empowerment of women, giving them recognized social responsibility and including them in the labour market.

Proparco Press Kit - 40 years of development I september 2017

The private sector as key driver of innovation and key force for sustainable development.

Access to healthcare, education, effective transport networks, electric power and telecommunications is crucial to the economic and social development of countries in the Southern Hemisphere. Fortunately, on all those fronts, private businesses come forward with innovative solutions. Private sector initiative accelerates technological, ecological and social progress.

THE IMPACTS OF PROPARCO In

2016 Proparco financing made it possible: • 1,700 additional beds at hospitals.

• Quality education provided to 6,000 students. In 2015, 45,700 newly enrolled students benefited.

By the year

2020 Proparco is committed:

• T o making essential goods and services like education, healthcare and infrastructure effectively available to 12

million people per year with potential access to them.

• To providing 45 innovative programmes per year for vulnerable population groups.

ON THE GROUND Innovating to strengthen healthcare. In addressing the challenges facing healthcare provision in the Southern Hemisphere, effective cooperation with the private sector can lead to broader, higher-quality care.

Video from Brazil, focusing on the HCor hospital supported by Proparco. With two new hybrid operating rooms spanning neurology and cardiology, HCor has become South America’s leading-edge hospital.

A startup incubator to encourage student entrepreneurship. Video from Tunis shot at the startup incubator set up at the Esprit private engineering school, one of the country’s finest. The goal is to encourage innovation and job creation in Tunisia by whetting students’ appetite for entrepreneurship.

Upgrading infrastructure to overcome economic isolation. To invigorate economies and enhance their regional and international integration, Proparco supports the construction, extension and renovation of highway, port and airport infrastructure.

In the Ivory Coast, Proparco has assisted the Abidjan International Airport since 1998 - even during years of crisis. Read the viewpoint of Francis Brangier, the CEO of Egis Airport Operation.

A startup providing enhanced access to essential goods. Afrimarket has revolutionized migrant remittances by offering the African diaspora an online shopping and home delivery platform for local products (e.g., food, household appliances, pharmaceuticals) for their family members in West Africa.

Proparco Press Kit - 40 years of development I september 2017

Close to one billion of the Earth’s inhabitants still getting by without electric power.

A new paradigm is needed to face the daunting challenges of sustainability. That makes clean, economically competitive renewable energy a crucial component of the drive to achieve universal electricity access by 2030 called for by the international community.

THE IMPACTS OF PROPARCO In

2016: •€ 504 million invested in projects with a positive impact on climate change (e.g., renewable energy, energy efficiency).

• 13.4 million people with potential access to electricity.

•6 80,500 tonnes de CO2 avoided.

• Proparco accredited to act as financial intermediary and channel Green Climate Fund (GCF) resources.

By the year

2020:

• I nvest €2 billion in climate change mitigation projects.

•P revent the emission of 15 million tonnes of CO2 per year.

ON THE GROUND Winds of hope in Pakistan.

Proparco has supported local development in Pakistan’s Sindh Province by providing a €19m loan for the construction of a 50MW wind power facility and encouraging the recruitment of local labour. Read the report.

Senegal breaking free from reliance on oil.

Proparco has helped finance Senergy and Ten Merina, two of West Africa’s largest solar power plants. Both projects involve cooperation with the local population.

Read the report.

Cheaper, more efficient, brighter, safer - off-grid lighting systems improve living conditions for people in remote areas of Guatemala. Users simply prepay on their mobile phones. This innovative solution has received a €1.7 million loan from Proparco for the installation of 36,000 additional units. Read and see the report.

Proparco Press Kit - 40 years of development I september 2017

OUR MISSION Strengthen the private sector’s contribution to the achievement of the Sustainable Development Goals (SDGs)

OUR ADDED VA L U E

OUR TOOLS Loans

+ Expertise spanning multiple sectors and geographies + Ability to organize complex projects + An international network + Third-party funding (arrangement, syndication, credit facility management) + Good control of financial, environmental, social and other risks + Financial strength (as part of the AFD Group) + Co-financing arrangements with fellow development finance organizations (DEG, FMO, IFC)

Equity and quasi-equity investments Investment funds Guarantees Technical assistance

OUR AREAS OF I N V O LV E M E N T Agriculture and agribusiness Banks and financial markets Climate Education Industry

Infrastructure (energy, telecommunications, transport, water and sanitation) Microfinance Health Tourism

Proparco Press Kit - 40 years of development I september 2017

contact presse Proparco Florence Priolet +33 1 53 44 47 32 presse@proparco.fr