PROPARCO in sub saharan africa

PROPARCO in

Sub -Saharan Africa

,

PROPARCO’s core mandate in Sub-Saharan Africa

tants. The figure is expected to almost double by

that investing in the South – particularly in Africa

is to promote strong growth with the aim of cre-

2050. Both the continent and its market are ex-

– is profitable.

ating sustainable and more evenly distributed

Since 2006, PROPARCO’s commitments in Africa

employment.

have more than doubled. In 2009 they accounted

PROPARCO’s strategy pursues several objectives:

been high in recent years – roughly 5% a year – well above those of Organisation for Economic Cooperation and Development (OECD) countries.

Yet this growth is not enough to eradicate poverty: a third of people living below the poverty line live in Africa, mainly Sub-Saharan Africa. The continent has huge financial needs and is particularly exposed to risks stemming from the global economic situation, as the recent food, financial and economic crises have shown.

In order to face Africa’s major challenges, it is es-

FINANCING BUSINESSES: CREATORS

the most Africa-oriented development finance

energy in order to give widespread access to modern and clean energies; transport in order to improve the lives of city dwellers and give easier access to global markets;

for 40% of its activity. This figure makes PROPARCO ■

PROPARCO works in close partnership with its

Businesses in Sub-Saharan Africa, more than any-

All the infrastructure PROPARCO finances respects

establishments.

clients and can tailor its activity to local challenges

where else in the world, have extremely limited

the environment. PROPARCO promotes the use of

PROPARCO also promotes private equity invest-

thanks to its continent-wide network of offices.

access to financing.

renewable energies (wind, geothermal, solar ener-

ment for which it is now one of the major play-

gy, mini hydro). It also promotes greater energy

ers in Africa. Its participation in investment funds

efficiency and biomass, biogas and biofuel deve-

- with the support of local teams – helps scale up

lopment.

the impacts of its financing and reach the whole

The offices in Sub-Saharan Africa are located in

PROPARCO’s activity is complementary to com-

Johannesburg, Lagos, Nairobi and Abidjan which

mercial banks. It supports businesses by offering

means PROPARCO covers the whole of the Sub-

them long-term resources: loans, guarantees and

Saharan region. Its presence in Africa is backed

direct equity investments. It mainly finances the

FACILITATING LONG-TERM INVESTMENT PROPARCO supports bank and financial interme-

main engine of growth and job creation and ge-

tries...), the manufacturing sector (construction

diation – from microfinance to private equity

nerates resources that allow States to play their

materials, renewable energy equipment suppli-

investment – in order to give businesses and

role as regulators and wealth redistributors.

ers...), the tourism industry (middle and top-end)

entrepreneurs access to financial and banking

and social sectors (education and health).

services.

© AFD

sea industries, cogeneration, subsistence indus-

PROPARCO – a development finance institution

TO THE POOR

number of local micro-entrepreneurs. It supports

– has made Africa its priority. Its activity focuses

Infrastructure access and quality are key factors

microfinance institutions, holding companies and

on financing the private sector and aims to cata-

for the attractiveness of a region, growth and

funds mainly operating in this sector. The range of

lyze private investment in the region. Its results

improving living conditions.

local banking products is mainly limited to short-

of commitments

37% of business

26 million people connected to a telecoms network

Tunis Cairo

300 MW of renewable energy generated

© AFD © Benoît Verdeaux

PROVIDING BASIC SERVICES

Casablanca

PROPARCO RCO scales up R Abidjan

Lagos

access to energy eergy in Africa, a continent w with immense Nairobi

renewable energies.

225 000 jobs created or secured

€ 155M contributed to State revenues every year

eenergy needs, and promotes the use of

Johannesburg

SME sector.

Uganda is one of the most lagging countries in the world in terms of access to electricity, with only 10% of the population connected to the electricity grid.

The aim of the Bujagali hydropower plant project is to bridge this deficit.

It is currently under construction with commissioning scheduled for the end of 2012. The 250 MW Bujagali dam will alone generate almost half of the energy produced in Uganda at half the cost of thermal energy. PROPARCO and AFD have cofinanced the project implemented by Bujagali Energy Limited for an amount totaling $72.8M, alongside

other development institutions, European, African and American banks.

In addition to its impacts on power generation, it was necessary to create 1 100 jobs to build the dam. The project will also reduce CO2 emissions by 1.5 million tons a year and will have limited environmental and social impacts. ■

KENYA Producing clean energy from sugar cane waste

independent. In 2008, PROPARCO allocated a $35M loan for the construction of a second cogeneration plant which has made it possible for the company to sell its production surplus (35 MW) to the national electricity supplier KPLC. Thanks to this activity, Mumias can diversify its sources of income, produce clean and renewable energy in a country which suffers from a major shortage and, at the same time, sell carbon credits on the international market. ■

Finally, PROPARCO supports the development of financial systems that are designed to suit the local context, are more efficient and benefit from an enhanced level of depth.

PROPARCO supports microfinance development

concerns.

€ 920M

marked to finance SMEs, it guarantees – via its sigrency and directly shores up the capital of credit

agribusiness sector (plantations, livestock raising,

people hooked up to electricity

It offers a range of loans and lines of credit ear-

OF REVENUES AND EMPLOYMENT

(Casablanca,Tunis, Cairo).

regional offices

themselves.

nature – loans allocated to businesses in local cur-

up by three other offices in the Mediterranean

290 000

to boost the economic fabric of their countries

divide.

The private sector plays a key role in this. It is the

4

systems, PROPARCO gives local players the means

telecommunications in order to combat the digit

sential to boost growth and make it sustainable.

Over the past 3 years:

term products. By supporting banks and financial

institution in Europe.

key player in terms of environmental and social

2007 - 2009

■

■

It provides certain essential services and is a

KEY FIGURES

PROPARCO’s financing focuses on:

in Africa in order to meet the needs of a large

SENEGAL Long-term financing 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 specialized 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. ■

© Nicolas Fornage

and the impacts of its financing both demonstrate

© Benoît Verdeaux

Africa has a population of over a billion inhabi-

periencing sweeping changes. Growth rates have

UGANDA Doubling electricity production

GIVING SUB-SAHARAN AFRICA THE TOOLS FOR ITS GROWTH

AFRICA: A PRIORITY

Mumias Sugar Company, a listed company located in the Lake Victoria region, is Kenya’s largest sugar producer.

Mumias is developing a policy to diversify its activities in order to face the future opening of the domestic sugar market to imports from countries in the region.

This includes implementing a cogeneration project.

By burning sugar cane (bagasse) waste, the company has now become almost totally energy

GIVING SUB-SAHARAN AFRICA THE TOOLS FOR ITS GROWTH and the impacts of its financing both demonstrate

PROPARCO’s core mandate in Sub-Saharan Africa

tants. The figure is expected to almost double by

that investing in the South – particularly in Africa

is to promote strong growth with the aim of cre-

2050. Both the continent and its market are ex-

– is profitable.

ating sustainable and more evenly distributed

Since 2006, PROPARCO’s commitments in Africa

employment.

have more than doubled. In 2009 they accounted

PROPARCO’s strategy pursues several objectives:

periencing sweeping changes. Growth rates have been high in recent years – roughly 5% a year – well above those of Organisation for Economic Cooperation and Development (OECD) countries.

Yet this growth is not enough to eradicate poverty: a third of people living below the poverty line live in Africa, mainly Sub-Saharan Africa. The continent has huge financial needs and is particularly exposed to risks stemming from the global economic situation, as the recent food, financial and economic crises have shown.

In order to face Africa’s major challenges, it is es-

FINANCING BUSINESSES: CREATORS

the most Africa-oriented development finance

energy in order to give widespread access to modern and clean energies; transport in order to improve the lives of city dwellers and give easier access to global markets;

for 40% of its activity. This figure makes PROPARCO ■

PROPARCO works in close partnership with its

Businesses in Sub-Saharan Africa, more than any-

All the infrastructure PROPARCO finances respects

establishments.

clients and can tailor its activity to local challenges

where else in the world, have extremely limited

the environment. PROPARCO promotes the use of

PROPARCO also promotes private equity invest-

thanks to its continent-wide network of offices.

access to financing.

renewable energies (wind, geothermal, solar ener-

ment for which it is now one of the major play-

gy, mini hydro). It also promotes greater energy

ers in Africa. Its participation in investment funds

efficiency and biomass, biogas and biofuel deve-

- with the support of local teams – helps scale up

lopment.

the impacts of its financing and reach the whole

The offices in Sub-Saharan Africa are located in

PROPARCO’s activity is complementary to com-

Johannesburg, Lagos, Nairobi and Abidjan which

mercial banks. It supports businesses by offering

means PROPARCO covers the whole of the Sub-

them long-term resources: loans, guarantees and

Saharan region. Its presence in Africa is backed

direct equity investments. It mainly finances the

FACILITATING LONG-TERM INVESTMENT PROPARCO supports bank and financial interme-

main engine of growth and job creation and ge-

tries...), the manufacturing sector (construction

diation – from microfinance to private equity

nerates resources that allow States to play their

materials, renewable energy equipment suppli-

investment – in order to give businesses and

role as regulators and wealth redistributors.

ers...), the tourism industry (middle and top-end)

entrepreneurs access to financial and banking

and social sectors (education and health).

services.

© AFD

sea industries, cogeneration, subsistence indus-

PROPARCO – a development finance institution

TO THE POOR

number of local micro-entrepreneurs. It supports

– has made Africa its priority. Its activity focuses

Infrastructure access and quality are key factors

microfinance institutions, holding companies and

on financing the private sector and aims to cata-

for the attractiveness of a region, growth and

funds mainly operating in this sector. The range of

lyze private investment in the region. Its results

improving living conditions.

local banking products is mainly limited to short-

of commitments

37% of business

26 million people connected to a telecoms network

Tunis Cairo

300 MW of renewable energy generated

© AFD © Benoît Verdeaux

PROVIDING BASIC SERVICES

Casablanca

PROPARCO RCO scales up R Abidjan

Lagos

access to energy eergy in Africa, a continent w with immense Nairobi

renewable energies.

225 000 jobs created or secured

€ 155M contributed to State revenues every year

eenergy needs, and promotes the use of

Johannesburg

SME sector.

Uganda is one of the most lagging countries in the world in terms of access to electricity, with only 10% of the population connected to the electricity grid.

The aim of the Bujagali hydropower plant project is to bridge this deficit.

It is currently under construction with commissioning scheduled for the end of 2012. The 250 MW Bujagali dam will alone generate almost half of the energy produced in Uganda at half the cost of thermal energy. PROPARCO and AFD have cofinanced the project implemented by Bujagali Energy Limited for an amount totaling $ 72.8M, alongside

other development institutions, European, African and American banks.

In addition to its impacts on power generation, it was necessary to create 1 100 jobs to build the dam. The project will also reduce CO2 emissions by 1.5 million tons a year and will have limited environmental and social impacts. ■

KENYA Producing clean energy from sugar cane waste

independent. In 2008, PROPARCO allocated a $ 35M loan for the construction of a second cogeneration plant which has made it possible for the company to sell its production surplus (35 MW) to the national electricity supplier KPLC. Thanks to this activity, Mumias can diversify its sources of income, produce clean and renewable energy in a country which suffers from a major shortage and, at the same time, sell carbon credits on the international market. ■

Finally, PROPARCO supports the development of financial systems that are designed to suit the local context, are more efficient and benefit from an enhanced level of depth.

PROPARCO supports microfinance development

concerns.

€ 920M

marked to finance SMEs, it guarantees – via its sigrency and directly shores up the capital of credit

agribusiness sector (plantations, livestock raising,

people hooked up to electricity

It offers a range of loans and lines of credit ear-

OF REVENUES AND EMPLOYMENT

(Casablanca,Tunis, Cairo).

regional offices

themselves.

nature – loans allocated to businesses in local cur-

up by three other offices in the Mediterranean

290 000

to boost the economic fabric of their countries

divide.

The private sector plays a key role in this. It is the

4

systems, PROPARCO gives local players the means

telecommunications in order to combat the digit

sential to boost growth and make it sustainable.

Over the past 3 years:

term products. By supporting banks and financial

institution in Europe.

key player in terms of environmental and social

2007 - 2009

■

■

It provides certain essential services and is a

KEY FIGURES

PROPARCO’s financing focuses on:

in Africa in order to meet the needs of a large

SENEGAL Long-term financing 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 specialized 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. ■

© Nicolas Fornage

Africa has a population of over a billion inhabi-

UGANDA Doubling electricity production

© Benoît Verdeaux

AFRICA: A PRIORITY

Mumias Sugar Company, a listed company located in the Lake Victoria region, is Kenya’s largest sugar producer.

Mumias is developing a policy to diversify its activities in order to face the future opening of the domestic sugar market to imports from countries in the region.

This includes implementing a cogeneration project.

By burning sugar cane (bagasse) waste, the company has now become almost totally energy

GIVING SUB-SAHARAN AFRICA THE TOOLS FOR ITS GROWTH and the impacts of its financing both demonstrate

PROPARCO’s core mandate in Sub-Saharan Africa

tants. The figure is expected to almost double by

that investing in the South – particularly in Africa

is to promote strong growth with the aim of cre-

2050. Both the continent and its market are ex-

– is profitable.

ating sustainable and more evenly distributed

Since 2006, PROPARCO’s commitments in Africa

employment.

have more than doubled. In 2009 they accounted

PROPARCO’s strategy pursues several objectives:

periencing sweeping changes. Growth rates have been high in recent years – roughly 5% a year – well above those of Organisation for Economic Cooperation and Development (OECD) countries.

Yet this growth is not enough to eradicate poverty: a third of people living below the poverty line live in Africa, mainly Sub-Saharan Africa. The continent has huge financial needs and is particularly exposed to risks stemming from the global economic situation, as the recent food, financial and economic crises have shown.

In order to face Africa’s major challenges, it is es-

FINANCING BUSINESSES: CREATORS

the most Africa-oriented development finance

energy in order to give widespread access to modern and clean energies; transport in order to improve the lives of city dwellers and give easier access to global markets;

for 40% of its activity. This figure makes PROPARCO ■

PROPARCO works in close partnership with its

Businesses in Sub-Saharan Africa, more than any-

All the infrastructure PROPARCO finances respects

establishments.

clients and can tailor its activity to local challenges

where else in the world, have extremely limited

the environment. PROPARCO promotes the use of

PROPARCO also promotes private equity invest-

thanks to its continent-wide network of offices.

access to financing.

renewable energies (wind, geothermal, solar ener-

ment for which it is now one of the major play-

gy, mini hydro). It also promotes greater energy

ers in Africa. Its participation in investment funds

efficiency and biomass, biogas and biofuel deve-

- with the support of local teams – helps scale up

lopment.

the impacts of its financing and reach the whole

The offices in Sub-Saharan Africa are located in

PROPARCO’s activity is complementary to com-

Johannesburg, Lagos, Nairobi and Abidjan which

mercial banks. It supports businesses by offering

means PROPARCO covers the whole of the Sub-

them long-term resources: loans, guarantees and

Saharan region. Its presence in Africa is backed

direct equity investments. It mainly finances the

FACILITATING LONG-TERM INVESTMENT PROPARCO supports bank and financial interme-

main engine of growth and job creation and ge-

tries...), the manufacturing sector (construction

diation – from microfinance to private equity

nerates resources that allow States to play their

materials, renewable energy equipment suppli-

investment – in order to give businesses and

role as regulators and wealth redistributors.

ers...), the tourism industry (middle and top-end)

entrepreneurs access to financial and banking

and social sectors (education and health).

services.

© AFD

sea industries, cogeneration, subsistence indus-

PROPARCO – a development finance institution

TO THE POOR

number of local micro-entrepreneurs. It supports

– has made Africa its priority. Its activity focuses

Infrastructure access and quality are key factors

microfinance institutions, holding companies and

on financing the private sector and aims to cata-

for the attractiveness of a region, growth and

funds mainly operating in this sector. The range of

lyze private investment in the region. Its results

improving living conditions.

local banking products is mainly limited to short-

of commitments

37% of business

26 million people connected to a telecoms network

Tunis Cairo

300 MW of renewable energy generated

© AFD © Benoît Verdeaux

PROVIDING BASIC SERVICES

Casablanca

PROPARCO RCO scales up R Abidjan

Lagos

access to energy eergy in Africa, a continent w with immense Nairobi

renewable energies.

225 000 jobs created or secured

€ 155M contributed to State revenues every year

eenergy needs, and promotes the use of

Johannesburg

SME sector.

Uganda is one of the most lagging countries in the world in terms of access to electricity, with only 10% of the population connected to the electricity grid.

The aim of the Bujagali hydropower plant project is to bridge this deficit.

It is currently under construction with commissioning scheduled for the end of 2012. The 250 MW Bujagali dam will alone generate almost half of the energy produced in Uganda at half the cost of thermal energy. PROPARCO and AFD have cofinanced the project implemented by Bujagali Energy Limited for an amount totaling $ 72.8M, alongside

other development institutions, European, African and American banks.

In addition to its impacts on power generation, it was necessary to create 1 100 jobs to build the dam. The project will also reduce CO2 emissions by 1.5 million tons a year and will have limited environmental and social impacts. ■

KENYA Producing clean energy from sugar cane waste

independent. In 2008, PROPARCO allocated a $ 35M loan for the construction of a second cogeneration plant which has made it possible for the company to sell its production surplus (35 MW) to the national electricity supplier KPLC. Thanks to this activity, Mumias can diversify its sources of income, produce clean and renewable energy in a country which suffers from a major shortage and, at the same time, sell carbon credits on the international market. ■

Finally, PROPARCO supports the development of financial systems that are designed to suit the local context, are more efficient and benefit from an enhanced level of depth.

PROPARCO supports microfinance development

concerns.

€ 920M

marked to finance SMEs, it guarantees – via its sigrency and directly shores up the capital of credit

agribusiness sector (plantations, livestock raising,

people hooked up to electricity

It offers a range of loans and lines of credit ear-

OF REVENUES AND EMPLOYMENT

(Casablanca,Tunis, Cairo).

regional offices

themselves.

nature – loans allocated to businesses in local cur-

up by three other offices in the Mediterranean

290 000

to boost the economic fabric of their countries

divide.

The private sector plays a key role in this. It is the

4

systems, PROPARCO gives local players the means

telecommunications in order to combat the digit

sential to boost growth and make it sustainable.

Over the past 3 years:

term products. By supporting banks and financial

institution in Europe.

key player in terms of environmental and social

2007 - 2009

■

■

It provides certain essential services and is a

KEY FIGURES

PROPARCO’s financing focuses on:

in Africa in order to meet the needs of a large

SENEGAL Long-term financing 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 specialized 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. ■

© Nicolas Fornage

Africa has a population of over a billion inhabi-

UGANDA Doubling electricity production

© Benoît Verdeaux

AFRICA: A PRIORITY

Mumias Sugar Company, a listed company located in the Lake Victoria region, is Kenya’s largest sugar producer.

Mumias is developing a policy to diversify its activities in order to face the future opening of the domestic sugar market to imports from countries in the region.

This includes implementing a cogeneration project.

By burning sugar cane (bagasse) waste, the company has now become almost totally energy

CUSTOMIZED FINANCIAL SOLUTIONS PROPARCO is a development finance institution jointly held by Agence Française de Développement (AFD) and public and private shareholders PROPARCO focuses exclusively on long-term finan-

ducts, in particular via the Investment and Support

cing in countries or for counterparts that are con-

Fund for Businesses in Africa (FISEA).

range of financial products that are complemen-

private investment in emerging and developing countries with the aim of ■ Loans

tary to traditional commercial products.

products to the depth of each market. It offers

Millennium Development Goals (MDGs).

PROPARCO was founded thirty years ago on the conviction that the

■ Equity investments

senior, junior, mezzanine and subordinated loans

PROPARCO always acquires minority stakes which

ranging between €5M and €100M (the average

private sector is a key player in development. It tripled its capital in 2008.

are destined to be sold after a 4 to 8 year period,

being €13M). Maturities range between 5 and 15

PROPARCO finances investments that are economically viable, socially

once the business has reached a level of maturity

years depending on project requirements. These

equitable, environmentally sustainable and financially profitable. It tailors

that allows it to raise capital on markets or request

loans may be denominated in euros, dollars or local

its sectoral strategy to the level of development of each country and

financing from private investors.

currencies.

PROPARCO makes both equity and quasi-equity investments: capital, preferential shares, convertible bonds and participation loans.

PROPARCO also invests in equity in investment funds. In Sub -Saharan Africa it supports the creation or development of regional funds dedicated to SME financing. It provides a wide range of pro-

Sub -Saharan Africa

focuses on productive sectors, financial systems, infrastructure and priva-

■ Foreign currency products

te equity investment. PROPARCO invests in a vast geographical area that

PROPARCO offers guarantees or direct loans in local

encompasses both the major emerging countries and the poorest coun-

currency in order to reduce the foreign exchange

tries, particularly Africa. The company has extremely high requirements in

risk. Its signature is a guarantee of solvency and may take several forms: ■

PROPARCO in

supporting growth, sustainable development and the achievement of the

PROPARCO tailors its medium and long-term loan

Guarantees for bond issues or other market products;

terms of social and environmental responsibility.

PROPARCO offers a full range of financial products tailored to the needs © Michel Hasson

of private investors in developing countries (loans, equity, guarantees and financial engineering). In 2009, PROPARCO invested 1.1 billion euros in

■

Guarantees for interbank loans;

■

Guarantees for loans in local currency;

■

Liquidity guarantees for mutual funds.

eighty projects in over thirty countries.

151, rue Saint - Honoré 75001 Paris Tel.: +33 1 53 44 31 08

© B.Verdeaux

Fax: +33 1 53 44 38 38

in Kenya.

www.proparco.fr FISEA A new equity financing solution in Sub-Saharan Africa FISEA is an investment fund that takes equity participations in businesses, banks and microfinance institutions, as well as investment funds operating in Sub-Saharan Africa. FISEA was set up in Paris in 2009. The fund is hosted by Agence Française de Développement and managed

by PROPARCO. FISEA aims to be complementary to traditional private funds.

It focuses on investments carrying a higher risk in unstable or post-crisis regions and makes

small-scale investments in traditionally neglected sectors (agriculture, microfinance, new energies, health, education...).

It has a €50M annual investment target for a five-year period. Unit amounts range between €1M and €10M and can be coupled with financing for technical assistance.

FISEA aims to galvanize economic growth in this region. ■

WEST AFRICA Boulevard François Mitterrand

NIGERIA AND CENTRAL AFRICA

EAST AFRICA Royal Ngao House

SOUTHERN AFRICA AND MADAGASCAR

01 BP 1814

Melrose Office suites

Hospital Road

Ballywoods Office Park

Abidjan, Côte d’Ivoire

Phoenix House Plot 26E

P.O Box 45995

Ironwood House, 1st Floor

Tel.: (225) 22 40 70 40

Abdulrahman Okene

00100 Nairobi, Kenya

29 Ballyclare Drive, Bryanston

Fax: (225) 22 44 21 78

Close Off Ligali Ayorinde Street

Tel.: (254) 20 271 12 34

P.O. Box 786555

proparcoabidjan@afd.fr

Victoria Island

(254) 20 271 10 58

Lagos, Nigeria

Fax: (254) 20 271 79 88

Johannesburg, South Africa

Tel.: (234) 12705740

afdnairobi@groupe-afd.org

Tel.: (27) 11 540 7100

Sandton 2146

Fax: (27) 11 540 7117 proparcojohannesbourg@afd.fr

graphic design: Vincent Collin

Tea plantation

cover © Benoît Verdeaux

sidered too risky by commercial banks. It offers a

from the North and South. The company has a mandate to galvanize

CUSTOMIZED FINANCIAL SOLUTIONS PROPARCO is a development finance institution jointly held by Agence Française de Développement (AFD) and public and private shareholders PROPARCO focuses exclusively on long-term finan-

ducts, in particular via the Investment and Support

cing in countries or for counterparts that are con-

Fund for Businesses in Africa (FISEA).

range of financial products that are complemen-

private investment in emerging and developing countries with the aim of ■ Loans

tary to traditional commercial products.

products to the depth of each market. It offers

Millennium Development Goals (MDGs).

PROPARCO was founded thirty years ago on the conviction that the

■ Equity investments

senior, junior, mezzanine and subordinated loans

PROPARCO always acquires minority stakes which

ranging between €5M and €100M (the average

private sector is a key player in development. It tripled its capital in 2008.

are destined to be sold after a 4 to 8 year period,

being €13M). Maturities range between 5 and 15

PROPARCO finances investments that are economically viable, socially

once the business has reached a level of maturity

years depending on project requirements. These

equitable, environmentally sustainable and financially profitable. It tailors

that allows it to raise capital on markets or request

loans may be denominated in euros, dollars or local

its sectoral strategy to the level of development of each country and

financing from private investors.

currencies.

PROPARCO makes both equity and quasi-equity investments: capital, preferential shares, convertible bonds and participation loans.

PROPARCO also invests in equity in investment funds. In Sub -Saharan Africa it supports the creation or development of regional funds dedicated to SME financing. It provides a wide range of pro-

Sub -Saharan Africa

focuses on productive sectors, financial systems, infrastructure and priva-

■ Foreign currency products

te equity investment. PROPARCO invests in a vast geographical area that

PROPARCO offers guarantees or direct loans in local

encompasses both the major emerging countries and the poorest coun-

currency in order to reduce the foreign exchange

tries, particularly Africa. The company has extremely high requirements in

risk. Its signature is a guarantee of solvency and may take several forms: ■

PROPARCO in

supporting growth, sustainable development and the achievement of the

PROPARCO tailors its medium and long-term loan

Guarantees for bond issues or other market products;

terms of social and environmental responsibility.

PROPARCO offers a full range of financial products tailored to the needs © Michel Hasson

of private investors in developing countries (loans, equity, guarantees and financial engineering). In 2009, PROPARCO invested 1.1 billion euros in

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Guarantees for interbank loans;

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Guarantees for loans in local currency;

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Liquidity guarantees for mutual funds.

eighty projects in over thirty countries.

151, rue Saint - Honoré 75001 Paris Tel.: +33 1 53 44 31 08

© B.Verdeaux

Fax: +33 1 53 44 38 38

in Kenya.

www.proparco.fr FISEA A new equity financing solution in Sub-Saharan Africa FISEA is an investment fund that takes equity participations in businesses, banks and microfinance institutions, as well as investment funds operating in Sub-Saharan Africa. FISEA was set up in Paris in 2009. The fund is hosted by Agence Française de Développement and managed

by PROPARCO. FISEA aims to be complementary to traditional private funds.

It focuses on investments carrying a higher risk in unstable or post-crisis regions and makes

small-scale investments in traditionally neglected sectors (agriculture, microfinance, new energies, health, education...).

It has a €50M annual investment target for a five-year period. Unit amounts range between €1M and €10M and can be coupled with financing for technical assistance.

FISEA aims to galvanize economic growth in this region. ■

WEST AFRICA Boulevard François Mitterrand

NIGERIA AND CENTRAL AFRICA

EAST AFRICA Royal Ngao House

SOUTHERN AFRICA AND MADAGASCAR

01 BP 1814

Melrose Office suites

Hospital Road

Ballywoods Office Park

Abidjan, Côte d’Ivoire

Phoenix House Plot 26E

P.O Box 45995

Ironwood House, 1st Floor

Tel.: (225) 22 40 70 40

Abdulrahman Okene

00100 Nairobi, Kenya

29 Ballyclare Drive, Bryanston

Fax: (225) 22 44 21 78

Close Off Ligali Ayorinde Street

Tel.: (254) 20 271 12 34

P.O. Box 786555

proparcoabidjan@afd.fr

Victoria Island

(254) 20 271 10 58

Lagos, Nigeria

Fax: (254) 20 271 79 88

Johannesburg, South Africa

Tel.: (234) 12705740

afdnairobi@groupe-afd.org

Tel.: (27) 11 540 7100

Sandton 2146

Fax: (27) 11 540 7117 proparcojohannesbourg@afd.fr

graphic design: Vincent Collin

Tea plantation

cover © Benoît Verdeaux

sidered too risky by commercial banks. It offers a

from the North and South. The company has a mandate to galvanize