UBA is the first beneficiary of AFD Group’s (AFD and its private sector financing arm Proparco) new EURIZ guarantee mechanism. The partnership signed with UBA will help the Pan-African bank further increase its support to entrepreneurs and MSMEs contributing to sustainable economic development on the continent.

AFD and Proparco, with the support of the European Union and the African, Caribbean and Pacific Group of States, are launching EURIZ, a new scheme enabling financial institutions to partially hedge their credit risk.

The objective is to offer local banks guarantees so that they can more easily provide loans to MSMEs in the ACP area. This new project is part of the Thematic Blending Framework of the EU’s Development Cooperation Instrument and European Development Fund.

It is also part of Choose Africa, a French initiative targeting African MSMEs. It will support the creation and development of SMEs with a high development impact and promote job creation.

Agriculture and agro-industry play a central role in the economies and societies of developing countries, particularly in Africa, where they account for nearly 16% of GDP and more than half of all jobs. Faced with the environmental, food security and access to employment challenges of a rapidly growing world population, the sector will see its role and responsibilities grow stronger over the coming decades. Under what conditions can agro-industry deploy its potential in the service of sustainable development?