Presentation of the mechanism
PROPARCO mobilizes financing from the Support Fund for Governance Capacity Building (FRCG) managed by AFD in order to build the environmental, social and governance capacities of its clients.
Objectives of the mechanism
Allow businesses and partner financial intermediaries to upgrade to international good practices for management and environmental and social management.
- Help AFD Group’s partner financial intermediaries define and implement international good practices for governance, transparency and financial ethics (Anti money-laundering/Counter terrorism financing).
- Eligible countries: Priority Solidarity Zone (PSZ) countries
- Eligible clients: Businesses or AFD Group’s partner Financial Institutions
What FRCG finances
- Additional actions: symposiums, training
- Operations are appraised on a case-by-case basis. The maximum amount of financing allocated to each capacity building mission is EUR 50,000
- The FRCG cofinances the technical assistance mission. The financing plan for the support must include a minimum amount of self-financing by the company (a minimum of 25% in cash)
- The partner’s request for technical assistance must be transmitted to the technical assistance unit by PROPARCO’s investment officer
- The technical assistance unit is in charge of appraising the application and putting it before the different decision-making bodies
- The project is presented to Agence Française de Développement, which is responsible for the financing allocation decision
- If it is approved, a financing agreement for the technical assistance project is signed between AFD and the company
- The company is responsible for selecting a consultant through a competitive bidding procedure PROPARCO gives its “no objection” on the choice of the consultant
- PROPARCO and AFD help the company implement and supervise the technical assistance mission