In addition to its contribution to economic development through wealth and job creation, infrastructure construction and the integration of countries into world trade, the private sector, in the North and South alike, has a broader social responsibility: sustainable and inclusive development requires a commitment by companies and financial institutions to act in a responsible manner.
The impact that the operations financed by Proparco have on improving living conditions for communities, the fight against climate change and, more generally, the development of Southern countries, is among the main selectivity criteria.
During project appraisal, Proparco uses a tool that is common to several European institutions to assess this contribution and effectively direct its investments: the GPR Corporate-Policy Project Rating ), which was devised by its German counterpart DEG , and has been tailored to its needs.
Corruption, fraud, money laundering, terrorist financing, anti-competitive practices, as well as any form of misappropriation of funds allocated to the private sector by Proparco, can cause long-lasting damage to AFD Group by tarnishing its credibility and legitimacy and reducing the outreach of its financing.
Individuals, groups, communities or other parties who believe to be adversely affected by a project financed or planned by Proparco can make a complaint and will be heard by independent experts.
The Mechanism is a joint initiative with DEG - Deutsche Investitions und Entwicklungsgesellschaft and FMO - Netherlands Development Finance Company.