In developing countries and a number of emerging countries, a majority of the population does not have access to “traditional” banking services. In Sub-Saharan Africa, less than one adult in five has a bank account and just over one in four in the Latin America-Caribbean and East Asia-Pacific regions. This is due to the fact that incomes and credit needs are too low compared to the profitability thresholds defined by banks.

Since microfinance was created in the 1970s, it has demonstrated that financial services tailored to the poorest are not only useful and necessary, but that they can also be profitable.

They allow people who are excluded from the banking sector – particularly small rural producers and workers in the informal sector, first and foremost women – to access financial services tailored to their needs (microcredit, micro-insurance, savings, means of payment…) in order to develop their activity, secure their income and face the hazards of life (illness, death…).

Proparco works to support the emergence and development of strong and responsible actors: MFIs, banks, and funds investing in the microfinance sector. By allocating loans, particularly in local currency, or through equity investments, Proparco contributes to increasing local financing capacities, as well as to the financial soundness and stability of actors in the sector.

Prior to any financing, Proparco pays very close attention to the strategy of MFIs in terms of profitability: no financing is allocated to institutions that generate significant profits to the detriment of their clients.

Proparco’s operations aim to promote responsible microfinance. To this end, PROPARCO advises and supports its partners on questions of governance and financial security, environmental and social issues, as well as for the implementation of measures to protect their clients, particularly against overindebtedness.