Proparco only supports funds that are engaged in a real developmental approach.
Prior to any financing, it conducts an in-depth analysis of their management team, their investment strategy and the suitability of the potential companies to finance in terms of its mandate.
It also ensures that the funds in which it invests have an environmental and social (E&S) policy in accordance with the highest standards or, otherwise, helps them improve their E&S and governance performance.
Like other development finance institutions, Proparco pays close attention to ensuring that its financing in funds is used in an effective manner and in accordance with its objectives.
It requires regular detailed reporting from them, in particular on the E&S aspects, which allows it to detect any bad practices by companies in the portfolio and propose possible ways of improvement.
In terms of financial security, Proparco applies AFD Group’s in-house procedures, which are some of the most demanding among donors. No fund supported by Proparco is registered in a Non-Cooperative Jurisdiction (NCJ) and no entity involved in the management teams or shareholding of funds is on the sanctions lists of the UN, European Union or France.
In their investments, they all apply the same level of vigilance as Proparco applies to its direct investments.
At the end of 2013, the 56 investment funds in Proparco’s portfolio had financed 250 companies, which themselves had contributed to creating or maintaining 120,000 jobs.
They support microfinance institutions, fair trade or organic producers’ organizations in Africa, clean energy infrastructure projects in Southeast Asia, agricultural and agro-industrial SMEs in India…