Banks and Financial services

A resilient, efficient and well-regulated financial system is essential for the development and economic stability of developing and emerging countries.
Un homme perplexe regardant son écran d'ordinateur

Financial systems

Une personne qui indiquent le texte dans un cahier à une autre

Financial systems are essential to the stability of southern economies

Companies, both large and small, are one of the engines of economic growth in Southern countries. In order to ensure their development and have a knock-on effect on local economies, as well as on job and wealth creation, they need to be able to rely on resilient, effective and well-regulated financial systems that contribute to financing companies' investments via medium and long-term loans (5 to 20 years).

Yet this demand continues to be poorly covered in developing and emerging countries, as local banks do not have the necessary resources. Deposits from companies and individuals are often insufficient to be mobilized and earmarked for productive investments, especially in foreign currency (euros, dollars). The other “traditional” sources of bank refinancing, such as the interbank market or bond issues, are often weak. In this context, banks in the South struggle to play their role as “funders” of local economies.  

This difficulty to access credit is a real barrier to private sector growth and particularly affects small and medium-sized enterprises (SMEs).

Building the capacities of financial actors

Présentation du kit Kingo

Building the capacities of financial actors to invest in key activities for development

Supporting the private financial sector is one of Proparco’s main areas of operation. Proparco's support benefits banks, non-banking financial institutions (for example, institutions specialized in mortgage credit or financing the agricultural sector), as well as insurance and micro-insurance companies. It aims to strengthen and regulate financial systems in the South, while contributing to the dissemination of high environmental, social and governance (ESG) standards.

Proparco’s client banks are engaged in, or pledge to engage in, an environmental and social risk management process related to their activity and the activities of companies in their portfolio.

Proparco's operations

Deux travailleurs marchent vers l'objectif

Proparco’s operations more specifically contribute to:

  • Diversifying the range of financial products on local markets in order to better meet the needs of companies (loans in local currency, leasing, development of financial markets…) and individuals (housing loans, microfinance…);
  • Developing credit lines earmarked to finance projects for the agriculture and agrifood sector, renewable energies and energy efficiency, education and health, but also projects that aim to improve the ESG practices of companies, as well as access to credit for SMEs and housing for the middle classes;
  • Strengthening national banking actors and expanding regional groups (particularly on Sub-Saharan Africa’s frontier markets), but also supporting regulatory changes in the sector.
41%
of Proparco's signatures are with financial institutions
€2,199 M
in oustanding amounts for financial institutions and financial markets
47%
of employees in banks, businesses, infrastructure operators, and investment funds are women

 

    Interactive map
    This map is for illustrative purposes only and does not engage the responsibility of the AFD Group
    Launch search
    See map of all projects

    Downloads

    Institutional Documents

    Impact Report 2022

    Proparco is committed to building a better future by supporting private sector initiatives for a mor

    ...
    May 2023
    Institutional Documents

    Proparco Key Figures 2022

    2022, when Françoise Lombard was appointed Chief Executive Officer, closed the strategic cycle for

    ...
    May 2023
    Private Sector & Development

    The african insurance sector: building for the future

    Big players in the insurance sector have been increasingly focused on Africa over the past few years

    ...
    Sep 2016
    Private Sector & Development

    Social Business: a different way of doing business and investing

    In recent years, the concept of social business has emerged as a middle road between philanthropy an

    ...
    Feb 2016
    Private Sector & Development

    New players and new banking models for Africa

    The African banking sector – largely dominated by the European banks through to the late 1990s –

    ...
    May 2013
    Private Sector & Development

    Can private equity boost African development?

    In just the last decade or so, private equity has carved out a new territory for itself in sub-Sahar

    ...
    Oct 2011
    Videos

    Uganda: How Centenary Bank has supported small entrepreneurs affected by Covid-19

    Centenary Rural Development Bank, the second largest financial institution in Uganda, supported its

    ...
    Feb 2024
    Videos

    Covid-19: how AccèsBanque Madagascar supported small businesses after the crisis

    AccèsBanque Madagascar, a commercial bank created in 2006 by AccessHolding and present throughout M

    ...
    Feb 2024
    Videos

    REPLAY - Intervention of Proparco at the Global Inclusive Finance Summit

    Watch the intervention of Diane Jegam, Proparco Regional Director for South Asia, during the Global

    ...
    Dec 2023
    Videos

    REPLAY - Intervention of Proparco at Annual General Assembly of the Global Donor Platform for Rural Development

    Watch the intervention of Fariza Chalal, Investment Officer Manufacturing, Agribusiness an

    ...
    Oct 2023
    Voir toutes les ressources