Proparco has signed a partnership with Société Générale Senegal that will enable the deployment of loans guaranteed by the AFD Group to MSMEs affected by the crisis. 5 million (XOF 3,275,000,000) guarantee granted by Proparco will enable Societe Generale in Senegal to rapidly expand its support to MSMEs.
After examining requests for financing, companies with less than 200 employees affected by the crisis may be granted 12 to 48 month loans by Société Générale Madagasikara. These loans, which may represent up to 3 months of 2019 turnover, will be 80% guaranteed by AFD Group.
This guarantee scheme, made possible thanks to the resources specifically allocated by the French governement to support MSMEs in Africa, is a key tool in the Resilience component of the French Choose Africa initiative. Unveiled on 30 November in response to the crisis, this Resilience component brings France's commitment to entrepreneurs on the continent to 3.5 billion euros over the 2018-2022 period. Choose Africa mobilizes a wide range of tools: lines of credit, guarantees, equity investments, technical support, etc.
Supporting African small and medium enterprises, a major priority for AFD Group
More than 2 billion euros have already been deployed by the AFD Group as part of the French Choose Africa initiative. In West Africa, more than 520 million euros have already been granted to funds and local financial institutions in the form of equity investments, guarantees and lines of credit for the benefit of thousands of MSMEs in the country. Several entrepreneurs with a strong social impact have also been directly supported by AFD Group within the framework of the Social & Inclusive Business Camp or the AFIDBA program – AFD for Inclusive & Digital Business in Africa.
« Senegal is one of the first countries to benefit from the exceptional guarantee that we have recently proposed as part of the new Resilience component of the Choose Africa initiative. We are pleased to be able to deploy it in record time, demonstrating the strength of our partnership with Société Générale and our shared commitment to helping Senegalese entrepreneurs overcome the current crisis, said Fatoumata Sissoko-sy Proparco's Regional Director for West Africa.