The Tony Elumelu Foundation (TEF) has been supporting young African entrepreneurs since 2015. More than 1,000 entrepreneurs are recruited every year throughout the continent by the TEF, which empowers young individuals and supports the development of their businesses.
This first operation, amounting to 3.6Bn NGN (€8.6M), signed under AFD’s Group new risk-sharing mechanism EURIZ will help UBA finance entrepreneurs incubated by the TEF, in view to support their developmental impact.
This first implementation of EURIZ sets the path for the deployment of the guarantee scheme in other UBA subsidiaries on the continent.
EURIZ, a new guarantee mechanism designed to specifically support MSMEs with a high development impact
The EURIZ guarantee scheme was launched in May 2019 to facilitate MSMEs’ access to credit and help them play their essential role in economic growth and job creation.
Launched with the support of the European Union, as part of the Thematic Blending Framework of the EU’s Development Cooperation Instrument and European Development Fund, and the African, Caribbean and Pacific Group of States, EURIZ will build on the success of AFD’s ARIZ guarantee scheme, which has been supporting SMEs through financial institutions since 2008.
EURIZ will specifically focus on key sectors for sustainable development, in particular MSMEs operating in the agricultural, health, education, digital, green economy or inclusive business sectors, but also young start-ups, companies owned by women or young people under 25 who are facing increased difficulties in accessing finance.
“EURIZ will cover up to 70% of local bank loans granted to MSMEs operating in sectors with a high social and societal impact. The scheme also includes a technical cooperation component that will support these partner institutions to best serve these companies" says Thomas Husson, Proparco's Regional Director for Central Africa and Nigeria.
Thanks to EURIZ, more than 6,200 MSMEs are expected to benefit from loans in the coming years to create their projects or develop their activities, including 1,200 in fragile countries and 5,000 companies with a strong development impact.
The @UBAGroup is the 1st beneficiary of @Proparco's and @AFD_en new EURIZ guarantee mechanism! Thanks to this new partnership, the Pan-African bank will be able to further increase its support to entrepreneurs and MSMEs in #Nigeria https://t.co/XkZnYB29vW #ChooseAfrica pic.twitter.com/nvQz2uS6HC— Proparco (@Proparco) 23 mai 2019