The guarantees offered by AFD Group via its subsidiary Proparco enable partner banks to share the risk of financing micro, small and medium-sized enterprises (MSMEs), thereby increasing their capacity to finance the economy. With the Choose Africa Resilience program, the French government has made resources available to respond to the effects of the crisis and encourage the recovery of local economic activity.
Societe Generale has made supporting SMEs a strategic priority in Africa. The bank contributes in a responsible and sustainable way to the development of African SMEs, which are currently weakened by the health crisis.
The Choose Africa Resilience portfolio guarantees will enable Société Générale Chad to support its SME clients in their growth dynamics. The guaranteed loans will be used primarily in sectors with a high economic impact, such as transport, agri-food and trade. These measures will create or maintain hundreds of jobs, while supporting some fifty local businesses.
AFD Group and Société Générale have built a very close relationship over the years. It has materialized through the signing of lines of credit, guarantees and technical support solutions. For more than 10 years, Société Générale Group has participated in the ARIZ risk-sharing scheme proposed by AFD Group to develop financing for MSMEs in Africa. The quality of this partnership and the experience acquired by both institutions in financing and supporting African MSMEs are major assets in the current health crisis.
"Our historic partnership with Société Générale and the support of the French government allow us to provide a strong and targeted response to the financing difficulties encountered by small and medium-sized enterprises. The two new portfolio guarantees granted today by Proparco will help amplify the impact of the Choose Africa Resilience initiative, particularly in sectors with a high developmental impact," said Audrey Maignan, Proparco Regional Director for Central Africa.
"The initiatives we are carrying out with Proparco are actively participating in the safeguarding and development of many jobs in Chad. The local entrepreneurial fabric having been severely tested by the COVID19 pandemic, we wish to provide responsible and concrete support for its revival," confides Magloire N'GUESSAN, General Manager of Société Générale Chad.
The guarantees granted will thus contribute to MDGs 1 (Eradicate poverty in all its forms and everywhere in the world), 8 (Decent work and economic growth) and 10 (Reduced inequalities).