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Proparco has allocated a EURIZ portfolio guarantee to the microfinance institution Baobab to increase access to financing for Ivorian entrepreneurs.
Client presentation

Baobab Côte d’Ivoire is a subsidiary of the French microfinance group Baobab (formerly Microcred) founded in 2009 and operating in eight African and Asian countries. Baobab Côte d’Ivoire started its activities in 2011 and offers a range of inclusive financial services, enabling local entrepreneurs to develop their businesses through loans geared to the clients’ needs and profiles. It exclusively offers loans for entrepreneurship.

The microfinance institution has almost 215,000 clients and benefits from good nationwide coverage, with 35 branches and 250 Baobab service points. At year-end 2022, Baobab had a loan portfolio of EUR 184.5m, a total balance sheet of EUR 206.2m, and a net income of EUR 10.4m.

Project description

The project involves a EUR 4m EURIZ portfolio guarantee (PG) for the microfinance institution (MFI) Baobab Côte d’Ivoire. With a 70% coverage, it aims to facilitate the deployment of the MFI’s portfolio, primarily in rural areas and for the agriculture sector. Technical assistance is also planned.  

This EURIZ guarantee benefits from the support of the European Union and the OACPS.

Project impact

This guarantee automatically covers 70% of each loan granted by the bank to eligible SMEs during the two years of allocation, meeting the criteria for the amount and maturity in the eligible sectors. 

This project will enable the MFI to increase access to financing for entrepreneurs, and extend its loans to sectors and segments more in development, in particular the agriculture sector, and focusing on women’s entrepreneurship, education, and health. It is estimated that this project will support about 590 jobs, 1,561 microentrepreneurs, and 15 MSMEs.
 

Download the project sheet

This project is carried out with the support of the European Union and Organization of African, Caribbean and Pacific States (OACPS)
05/29/2024
Date of signature of the project
Banks and Financial services
Sectors
Côte d'Ivoire
Location
Guarantee
Financing tool
2 000 000 Euros
Amount of funding
XOF 2,623,828,000 guarantee
Financing details
EURIZ guarantee
financing program
BAOBAB Côte d'Ivoire
Client
France
Head office country
CCI1949
Project number

The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union and the African, Caribbean and Pacific Group of States (ACP Group).


This information is given at the time of signature, without prejudice to any developments in the operation/project