Proparco and AFD thus aim to bring together a wide range of financing and business advisory solutions, tailored to meet the needs of these small and medium-sized enterprises and start-ups at the different stages of their development.
Our solutions include providing funding to local financial institutions that cater for MSMEs, equity investment in growth and venture capital investment funds that support small businesses, as well as early-stage investment in start-ups. In addition to financing, we also support SME development by providing risk-sharing solutions to financial partners, as well as financing business advisory, training and capacity-building services.
With a local presence in more than 80 countries, we understand the multiple challenges that small businesses face and can tailor our support to meet local needs, and in ways that add value. Our ability to attract other investors brings additional benefits, introducing our clients to new sources of capital and enhanced governance, environmental and social performance.
Private equity investment
PRIVATE EQUITY FOCUSED ON HIGH-GROWTH SMES
- Proparco invests in companies (minority equity and quasi-equity investments) to provide support for high-impact development opportunities and capital for enterprises’ long-term growth. We can also combine financing with advisory services, training and access to networks to help firms achieve international standards of corporate governance or financial management, improving their performance and creditworthiness.
- Through investing in small-business focused private equity funds, Proparco also supports promising entrepreneurs and companies in developing and emerging countries. Through our fund partners, enterprises can access capital, as well as benefit from local expertise, knowledge and strategic support to grow, develop effective management frameworks and create sustainable jobs.
Early-stage investment in start-ups
FOR INNOVATIVE HIGH-POTENTIAL START-UPS
Proparco has a dedicated team focused on supporting high-potential, start-up companies looking to scale up marketable innovative solutions in Africa, and in other developing and emerging countries. Early stage investment is available principally through our partner investment funds, which cater for all types of investment stages, from seed to Series C.
Access to credit via local financial institutions
PARTNERING WITH LOCAL FINANCIAL INSTITUTIONS TO FACILITATE ACCESS TO CREDIT FOR MSMES
Proparco partners with a wide range of local financial institutions (commercial banks, microfinance institutions, leasing and insurance companies), to provide the necessary financing and advisory support to enable these institutions to more effectively and efficiently serve the needs of local MSMEs.
- Our financing (credit lines) enables our financial partners to promote inclusive growth by reaching smaller enterprises for the first time or to target underserved SME segments, such as women entrepreneurs.
- Risk-sharing with financial institutions also encourages increased lending to enterprises and microfinance institutions, particularly via AFD’s guarantee tool ARIZ.
- Proparco also offers business advisory services to assist financial partners to continue to serve their SME clientele in a sustainable way. Such services may focus on product innovation or development, business model design or staff training in SME lending.
FISEA: Boosting African small business
FUND FOR AFRICAN ENTREPRENEURS AND BUSINESSES
In 2009, AFD Group set up the FISEA facility with the objective of promoting economic growth and the creation of start-ups and MSMEs on the continent. As the initial investment capacity of EUR 250m had been fully invested at the end of 2019, a new facility, FISEA+, took over in early 2021 under the Choose Africa initiative. With an investment capacity of EUR 210m and a technical assistance budget of EUR 21m, FISEA+ will continue to support businesses, either directly or via investment funds.
ARE SCALE UP : Renewable energy in Africa
SUPPORTING AFRICAN ENTERPRISES IN THE RENEWABLE ENERGY SECTOR
The AFD Group, with the support of the European Union, has set up the African Renewable Energy Scale-Up Facility to support innovative projects in renewable energy and boost electrification on the African continent.
Through the facility, Proparco provides financing and business development services to high-potential, growth start-ups and enterprises. Preference is given to those active in the off-grid, mini-grid and decentralised energy sectors in Africa.
Please feel free to contact our experienced teams based in our regional offices, to discuss a tailored financing solution for your development needs. We would suggest contacting the office closest to the location of the proposed project.