Guarantees to strengthen and boost the private sector in economies in transition

By providing a broad range of guarantees, Proparco enables financial institutions to reduce their business risk.

By deploying guarantee programmes, Agence française de développement (AFD) Group helps to:

broaden access to finance for micro, small and medium-sized enterprises (MSMEs)
enable our banking partners to support import/export activities
strengthen financial inclusion through banks or microfinance institutions
support projects with a high economic, social and environmental impact and make it possible to achieve the Sustainable Development Goals (SDGs)

ARIZ: credit risk sharing for private financial institutions

ARIZ is a final loss guarantee provided to private financial institutions to cover individual loans or portfolios of loans given to MSMEs (up to 50%) or microfinance institutions (up to 80%).

This arrangement makes it possible to:

facilitate access to finance for MSMEs to help them to set up or grow their business
reduce the credit risk of partner financial institutions (banks, microfinance institutions, etc.)
potentially enhance the creditworthiness of financial institutions in relation to regulatory requirements

Download the ARIZ brochure

Project focus – Facilitating access to finance for MSMEs and businesses run by women in Nigeria

In December 2024, Proparco signed two agreements with the Nigerian bank FCMB to support MSMEs, particularly those run by women. The support includes a €3 million ARIZ guarantee and a €6 million Euriz guarantee, aimed at boosting FCMB's economic and social impact in Nigeria.

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EURIZ: a guarantee for high-impact MSMEs in Africa, the Caribbean and the Pacific

EURIZ is a guarantee solution created by Proparco and AFD, with support from the European Union and the Organisation of African, Caribbean and Pacific States (OACPS), which targets:

high-impact sectors (agriculture, healthcare, education, digital technology)
businesses run by women or young people (< 25 years old)
MSMEs located in fragile countries, particularly in sub-Saharan Africa, the Caribbean and the Pacific

Twofold advantage:

Guarantees of up to 70% on loans granted to MSMEs
Technical assistance for partner institutions

Project focus – Supporting the agricultural sector through Baobab Côte d'Ivoire

In May 2024, Proparco signed a EURIZ guarantee worth €4 million with Baobab Côte d'Ivoire, the country's leading microfinance institution. The partnership is designed to support smallholder farmers, cooperatives and micro-businesses operating across the local agri-food value chain.

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Trade Finance: facilitating the integration of emerging economies into global trade

Developing countries are often heavily dependent on imports and they can secure financing through the guarantee provided by Proparco under the Trade Finance Guarantee (GTF) programme.

This guarantee covers:

the exporter's bank (known as the confirming bank)
against the risk of default by the importer's bank (known as the issuing bank)
by providing a letter of credit, standby letter of credit or guaranteed/endorsed commercial paper (bills of exchange or promissory notes)

More information about the Trade Finance programme