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In Senegal, Proparco strengthens its commitment to SME financing with FBNBank Senegal

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Proparco has granted a €3 million ARIZ portfolio guarantee to FBNBank Senegal, a subsidiary of First Bank of Nigeria Plc, to cover a €6 million loan portfolio. This operation aims to support the bank’s nascent SME lending portfolio and accompany its diversification strategy. It also marks a new milestone in the decade-long partnership between Proparco and the FBN Group.


FBNBank Senegal is entering a new phase of growth by expanding its SME offering. The ARIZ guarantee, a scheme of the French Development Agency (AFD) Group, plays a key role here by reducing the risk associated with these loans, enabling the bank to increase its engagement in this segment. This is a critical issue in a country where SMEs account for more than 97% of the business landscape but capture only 9% of total credit outstanding.

The ARIZ mechanism is a final-loss portfolio guarantee set up by AFD to facilitate SME access to financing, covering up to 50% of a bank’s loan portfolio. ARIZ is an effective tool to foster investment and job creation across many sectors (agriculture, small trade, transport, etc.).

This transaction is part of the longstanding partnership between Proparco and the First Bank of Nigeria Group. After several operations with the Nigerian entity, the partnership between the two institutions is now extending for the first time outside Nigeria, supporting FBN Group’s pan-African growth strategy.

The ARIZ guarantee also allows Proparco to broaden and diversify its network of partners in Senegal by leveraging a key financial intermediation tool that is particularly well-suited to the specific characteristics of the Senegalese economy. This operation contributes to strengthening financial inclusion in Senegal, the second-largest banking market in the WAEMU and the leading sub-regional market for microfinance. It is in line with the country’s economic momentum, where private sector development is a key driver of growth.

This new operation is fully aligned with the first pillar of Proparco’s 2023–2027 strategy, “Invest in a sustainable and resilient economy,” by contributing to job creation and economic growth (SDG 8). Labeled Choose Africa, this guarantee reflects Proparco’s commitment to African entrepreneurs and to strengthening the local economic fabric.

This portfolio guarantee with FBNBank Senegal illustrates Proparco’s commitment to supporting the pan-African growth strategies of the continent’s leading banking groups. Helping banking players take on more risk by scaling up their SME financing offer is at the heart of Proparco’s mandate. We are therefore proud to support our partner FBNBank Senegal’s contribution to building a more resilient and inclusive economy in Senegal. We are also delighted to deepen the partnership between Proparco and the FBN Group, which this year celebrates its 10th anniversary.

Moustapha Ibrahim Malloum

  • Deputy Regional Director for West Africa at Proparco

This €3 million guarantee signed with Proparco marks a major milestone in our diversification strategy, with a strong focus on SME financing. Thanks to this partnership, we are now able to grow our SME-dedicated portfolio to €6 million. As a bank committed to financial inclusion and local economic development, we firmly believe that supporting entrepreneurship is a key driver for creating sustainable value. This collaboration with Proparco enhances our capacity to support small and medium-sized enterprises, offering them tailored financing solutions while managing risks effectively.

Omar Dioum

  • Managing Director of FBNBank Senegal