FISEA+: accelerating capital mobilization by impact investment funds in Africa
The European Commission (EC) and Agence Française de Développement (AFD) Group have signed a €35 million guarantee agreement for FISEA+, AFD Group's facility implemented by Proparco under the Choose Africa initiative.
FISEA+ is an initiative launched in 2021 that invests in high-impact funds that address 4 key strategic priorities: support to SMEs, the emergence of social and solidarity-based enterprises, the development of a sustainable private sector in fragile countries, as well as support to start-ups specialized in digital innovation.
The EC's support for FISEA+ will make it less risky for potential investors to invest in high impact funds in Africa. The technical support component of FISEA+, also made possible by the EC's financial support (€5 million), will maximize the impact of these funds on the continent.
"Thanks to this guarantee, Proparco can go further in supporting African SMEs: we plan to mobilize nearly 200 million euros of capital investment over the next seven years in high-impact investment funds in Africa, in addition to FISEA+ commitments," said Grégory Clemente, Chief Executive Officer of Proparco, AFD's subsidiary dedicated to private sector financing.
Cityriz: promoting the mobilization of financing for sustainable investments in African cities
The European Commission and Agence Française de Développement Group have signed a 30 million euro guarantee agreement for Cityriz, AFD Group's guarantee program for African banks to finance sustainable urban infrastructure.
Through Cityriz, AFD Group aims to contribute to the emergence or strengthening of domestic banking markets for local public debt, enabling African cities of all sizes to have access to financing in local currency and with long maturities that meet their needs.
The EU's support to Cityriz will make it less risky for African private and public banks to lend to cities, especially intermediate cities. The technical support component of Cityriz, also made possible by the EC's financial support (€2 million), will maximize the impact of this program on the continent.
"With Cityriz, AFD Group has created a new tool to support the territorial and ecological transition of African cities. This program should make it possible to mobilize nearly 100 million euros in loan commitments for sustainable urban investments in Africa over the next four years," said Remy Rioux, Chief Executive Officer of AFD.
In addition, a partnership between France and the Democratic Republic of Congo (DRC) was signed by Remy Rioux, the DRC Minister of Finance, Nicolas Kazadi, and the President of the French consulting firm Tactis, Stéphane Lelux. This partnership agreement, worth 605,000 euros, aims to develop an integrated master plan for digital infrastructure and to set up a platform for the exchange of skills between the French and DRC ecosystems.
This partnership is financed by FEXTE resources, a fund for technical expertise and experience sharing made available by France to support technical cooperation programs and experience sharing in countries receiving official development assistance. Through this FEXTE, the DRC will be able to capitalize on the experience of Tactis, a specialist in digital development of territories, whose great international expertise is recognized.
This new partnership between the DRC and France is part of the memorandum of understanding signed between the AFD Group and the Congolese State in December 2021, when Rémy Rioux came to the DRC. This agreement provides for AFD Group commitments of up to 500 million euros over the period 2022-2025 to support the DRC in the implementation of its priority reforms and investments to promote sustainable and inclusive growth.
To learn more about FISEA+, click on the image below