FISEA technical assistance

Presentation of the mechanism

FISEA (Investment and Support Fund for Businesses in Africa) offers technical assistance in addition to its investment activity. FISEA is an investment fund which takes equity stakes in businesses, banks, microfinance institutions and investment funds in sub-Saharan Africa.

Objectives of the mechanism

  • Build the capacities of the company in five main areas: leadership and organization, marketing, human resources, financial management and technical functions 

Eligibility conditions

  • Any company eligible for FISEA financing and having received a financing approval

What FISEA finances

  • FISEA finances different types of technical assistance mission. These missions are conducted by consultants selected by the beneficiary company
  • Strategic review: organizational diagnostic of the company (prior to a possible consultancy mission)
  • Targeted consultancy mission: assignment of a short-term consultant to hold a position or for one of the company’s products
  • Delegated consultancy missions for funds: financing for the technical assistance activities of investment funds to support companies in their portfolios
 
Financial conditions:
  • PROPARCO cofinances up to 50% of the total cost of the technical assistance mission. The company and, where applicable, other funders pay the remainder
  • The maximum amount for direct technical assistance (strategic review, studies, targeted consultancy mission) is EUR 200,000
  • The maximum amount for indirect technical assistance (delegated consultancy mission for funds) is EUR 500,000
 
Procedure:
  • The technical assistance request must be transmitted to the technical assistance unit by PROPARCO’s investment officer
  • The technical assistance unit helps the partner define its needs and prepare the technical assistance project. It is in charge of appraising the application and putting it before the different decision-making bodies
  • The project is put before the general management (< EUR 200,000) and the FISEA Investment Committee (> EUR 200,000), which are responsible for taking the decision on whether to allocate financing for the technical assistance project
  • If it is approved, a financing agreement for the technical assistance project is signed between FISEA 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 helps the company implement and supervise the technical assistance mission
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Last update in September 2012