Launch of the Impact+ Facility at AFIS 2025: Proparco and the European Union mobilize €1.1 billion in guarantees to finance high-impact African SMEs

Impact +, Impact+: scaling up for inclusive prosperity

In response to the significant financing gap faced by MSMEs — engines of growth, employment, and innovation — Impact+ provides a concrete solution: a credit risk-sharing mechanism offering substantial coverage. Backed by a €178 million counter‑guarantee provided by the European Union through the European Fund for Sustainable Development Plus (EFSD+), the initiative aims to mobilize €1.1 billion in guarantees over five years through partner financial institutions. This will create a strong leverage effect (x6) for financing priority sectors — notably climate action, sustainable agriculture, education, and health — while also supporting access to finance for underserved populations, including women, youth, and refugees.

According to Djalal Khimdjee, Deputy CEO of Proparco: "Following the success of the Euriz guarantee facility, dedicated to covering sectors with high socio-economic impact and/or countries in fragile economic situations, Impact+ is now taking over at a larger scale. This guarantee mechanism, co-developed with the European Union, will support financial institutions in facilitating access to credit for small and very small enterprises active in key sectors or operating in fragile contexts. This new product enshrines the idea of multi-stakeholder partnerships to support enterprise development: each actor—the European Union, the AFD Group, and of course, African financial institutions, as experts in their own markets—takes on its share of the risk to help small businesses grow." Accordingly, through Proparco, the AFD Group is further enhancing its comprehensive toolkit to continually support the growth of its financial partners, in pursuit of a sustainable economy across their areas of operation.

In practical terms, the planned guarantees will range from €2 million to €50 million, covering underlying loans from €500 to €2 million. These guarantees can cover both short-term (6 months) and long-term (10 years) loan maturities, with coverage rates of up to 80% of the principal, plus one year of unpaid interest.

An initiative rooted in the European Global Gateway strategy

Impact+ is fully aligned with the European Union's commitment to building more inclusive and resilient economies by supporting the scale-up of the private sector and African entrepreneurs. The facility also provides targeted technical assistance to strengthen the managerial capacities of partner banks and to ensure the long-term sustainability of these interventions. Fulvio Capurso, Head of Unit at the European Commission’s DG MENA, emphasises: “The new Impact+ facility, at the heart of the renewed partnership between the European Union and Africa, embodies the potential of de-risked finance: to catalyse local investment, encourage innovation among financial institutions, and lay the foundations for development solutions tailored to the priorities of our African partners. Our ambition, as expressed in the new Pact for the Mediterranean, is to go beyond traditional aid to demonstrate that financing Small Enterprises is profitable and conducive to equitable and sustainable economic development.”

An impact-oriented programme driven by Proparco's experience

Drawing on more than 15 years of experience in implementing guarantee facilities with over 150 institutions across 50 countries, Proparco reaffirms its commitment to fostering entrepreneurial ecosystems through the Impact+ programme, particularly within fragile contexts and for under-financed communities. Available in local currency, euros, or dollars, the guarantee optimises the provisioning and financial soundness of partner institutions, while also acting as a catalyst for growth and impact.