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Proparco and EU support financial inclusion in Burkina Faso through funding to ACEP BF
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As the French Presidency of the Council of the European Union draws to a close, Proparco and the European Union (EU) announce the granting of a €3 million line of credit in local currency to the microfinance institution ACEP Burkina Faso. This line of credit benefits from the ESDF guarantee, a risk-sharing mechanism in favor of microentrepreneurs and VSEs/SMEs set up by the European Union in response to the Covid-19 crisis.
ACEP Burkina Faso (ACEP BF) is one of the largest microfinance institutions in the country, in terms of portfolio and number of borrowers. Active since 2012, ACEP BF offers financial and non-financial products and services to VSEs and SMEs in urban and peri-urban areas of the country, with the objective of supporting their economic and social growth.
This line of credit will be guaranteed by the European Fund for Sustainable Development (EFSD). More specifically, this loan will be guaranteed by the EFSD "Emergency Covid Response" component of the EU, which supports small businesses affected by the crisis through financing provided by local institutions.
This operation will help maintain more than 1,200 jobs and finance more than 4,000 microcredits.
Finally, the project will contribute to Sustainable Development Goals 1 ("Poverty Eradication"), 8 ("Decent Work and Economic Growth") and 10 ("Reduced Inequality").
"AFD Group has supported the responsible microfinance sector for many years and ACEP Burkina Faso is a natural partner for Proparco. We are happy to continue our collaboration with the ACEP group in general, and together, to continue to support the Burkinabe private sector despite the difficult security context", said Fatoumata Sissoko-Sy, Proparco's West Africa Regional Director.
For Mr. KIRAKOYA Ousseni, General Manager of ACEP Burkina, "This new partnership is the result of the excellent relationship that exists between AFD and ACEP Burkina, which remember, has always been at the side of ACEP Burkina in the support of Burkinabe entrepreneurs. This signing ceremony marks Proparco's commitment to support ACEP Burkina in the financing of VSEs and SMEs, through this line of credit of 3 million euros, and reflects our vision of proximity with our clients who have trusted us and continue to trust us. This financing will only strengthen our position on the segment of VSEs and SMEs, and a strong contribution to financial inclusion in Burkina Faso".
Further reading
Proparco and ACEP Niger support entrepreneurs in Niger
The CFAF 1.5 billion loan granted by AFD Group to Niger's second largest microfinance institution will support a clientele made up of small entrepreneurs, mainly in the retail sector.
Published on april 6 2020
