Customised investment solutions for sustainable impact

Proparco invests in equity and mobilises long-term financial resources for its partners to support and develop sustainable and innovative solutions to address social, environmental and economic challenges.

An investment offering tailored to a diverse range of businesses and funds

To meet the specific challenges of each business, region and project, Proparco provides a range of differentiated investment solutions tailored to the nature and requirements of the organisations it supports.

Two types of investment: direct investments to strengthen the equity capital of selected companies and support their expansion projects, and intermediated investments via investment funds that redirect equity to the companies and start-ups in their ecosystem.

This approach makes it possible to support all types of players: large corporates with a sustainable and inclusive focus, emerging SMEs and innovative young start-ups.

Corporates: investing in projects with a high social and environmental impact

Proparco invests directly in the equity of companies that are of major importance to local economies, with a focus on sectors that are essential for sustainable development:
renewable energy, access to healthcare, affordable housing, education, infrastructure, access to water and urban mobility.

Investment amounts begin at €10 million, enabling companies to develop or expand their infrastructure and services.

Project focus - Divercity: boosting the supply of affordable housing in South Africa

Divercity develops, owns and manages affordable rental housing located in central neighbourhoods with good amenities in South Africa's major cities. Proparco's investment has enabled Divercity to programme the construction of over 2,500 affordable new builds.

Read the interview with Carel Kleynhans, CEO, Divercity

MSMEs: promoting sustainable and inclusive growth

Small and medium-sized businesses are key to job creation and structuring local industries. To meet their needs:

Proparco invests in MSMEs through the FISEA+ programme, an initiative set up by AFD Group to support enterprise in Africa and fragile countries.
Proparco also mobilises partner investment funds that are able to provide smaller amounts, with strong local roots and expertise in local markets.

Our solutions for supporting MSMEs

Start-up: supporting innovation for the benefit of local communities

To support high-potential start-ups in the digital, inclusive financial services, agritech, healthtech and cleantech sectors, Proparco focuses on:

Equity investments in venture capital funds, mainly in Africa
Direct investments, or investing via its subsidiary Digital Africa, throughout the growth cycle, from the pre-seed to scaling up phase

Project focus - Accelerating sustainable solutions for the African energy sector

Beacon Power Services deploys data and network management solutions to help the African technology sector distribute electricity more efficiently. Thanks to Series A funding, the company will be able to grow its product offering and move into new markets.

Our solutions for supporting start-up

Investment funds: structuring local financial ecosystems

Proparco invests in general or sector-specific impact investment funds operating at continental or regional level, which then channel resources into companies, microbusinesses, MSMEs and/or start-ups within their ecosystem.

This strategy makes it possible to:

Encourage private equity investment to make it easier to raise funds on less structured markets
Cover the equity requirements of all stakeholders, even for smaller amounts of investment

Project focus - The ARAF fund strengthens the climate resilience of smallholder farmers

Funded by a number of development finance partners and institutions – including Proparco through the AFD Group's FISEA+ facility – the ARAF fund invests in start-ups proposing innovative solutions that improve the conditions and climate resilience of smallholder farmers in East and West Africa.

Read the report

Our solutions for supporting investment funds

Our approach to investment

With its network of regional offices and local branches, Proparco maintains constant, close dialogue with its local and international partners while deploying a number of value creation levers:

Strategic support for investee businesses and funds in terms of ESG governance and structuring, especially through participation in decision-making or consultative bodies
Close coordination with other financing mechanisms and AFD Group agencies for maximum complementarity
Mobilisation of grants (blended finance) to boost the project’s social and environmental impact

More information