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Proparco and FMO extend a $50 million loan to BCI in Mozambique
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This operation arranged by Proparco will support the bank’s activity towards Mozambican corporates and infrastructure projects, which are core to the country’s development. It illustrates the commitment of both Development Finance Institutions to support the private sector in complex environments.
Founded in 1996, Banco Comercial e de Investimentos (BCI) is one of the main financial institutions in Mozambique, serving the retail segment as well as corporates and SMEs. BCI is holding today the number one position in the Mozambican Banking System in main indicators, such as Loans, Deposits, Assets, also in terms of Branch Office Network, and of ATMs and POS terminals. Its large network, including in rural areas where access to banking services remains low, has been contributing to improving financial inclusion in the country.
The AFD Group has been accompanying the bank’s development over the past decade. In 2010, Proparco granted a $20 million loan to support the bank’s growth. Likewise, Proparco’s mother company AFD has been supporting the bank’s activity towards SMEs through its ARIZ risk-sharing mechanism.
This new operation, to which Proparco and its Dutch counterpart FMO both contribute $25 million each, will specifically help the bank provide financing to long-term infrastructure projects.
A partnership for development and job creation
This project will hold positive impacts in terms of job creation. It will thus participate in the global efforts towards Sustainable Development Goal 1 (end poverty) and 8 (decent jobs and economic growth).
It testifies to Proparco’s and FMO’s commitment to operate in complex environments and to play a clear contra cyclical role, all the more important in the current economic context.
Between 2017 and 2020, Proparco has committed more than €1 billion to support the private sector in fragile and least-developed countries.