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Supporting our clients in implementing their projects and improving their practices
In developing and emerging countries, companies and financial institutions do not only need financing, but also to be assisted in implementing their projects and improving their practices, particularly environmental, social and governance practices (energy management solutions, human resources management, financial transparency, etc.).
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Proparco offers technical assistance to its clients in response and in addition to its financial support. These services aim to support the responsible practices and innovative initiatives of the private sector (new products and services, modes of production and organization…), and thereby strengthen the impact of Proparco’s investments on local development.
Through these services, Proparco supports the financing of studies (feasibility studies, for example) and audits, as well as the implementation of its clients’ in-house projects, for which one or several consultants can be seconded.
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This assistance mainly aims to support:
- The implementation of environmental and social management systems in financial institutions (banks, investment funds and microfinance institutions) and the promotion of performance standards1 in companies, as well as certification processes (ISO 14 001, OHSAS 18001, SA 8000, etc.);
- Capacity building for financial and risk management, including the fight against money laundering and terrorist financing (a condition sine qua none for any Group financing), as well as the strengthening of governance in companies in which PROPARCO invests (functioning of decision-making bodies, information systems…);
- An energy diagnostic to develop energy management solutions (energy efficiency/renewable energies);
- The launch of new innovative products and services in response to the needs of the most vulnerable (low-income populations, women, young people…), but also of microenterprises and medium-sized enterprises, cooperatives, small-scale farmers…
1 This notion of corporate “performance” covers the objectives of efficiency (production), effectiveness (productivity), viability (profitability) and relevance (economic, social and environmental impacts).
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PROPARCO finances them by mobilizing:
- The FISEA technical assistance facility , which is primarily intended to build the capacities of small and medium-sized enterprises in Sub-Saharan Africa;
- The Governance Capacity Building Facility (FRCG) , which finances projects to improve environmental, social and governance (ESG) performance;
- Its own budgets.
FISEA support
The Investment and Support fund for Business in Africa (FISEA), which is held by AFD and managed by Proparco, offers technical assistance services in addition to its investment activity.
The aim is to build the capacities and improve the performance1 of the companies (mainly SMEs) and financial institutions in which FISEA invests, either directly or indirectly, in Sub-Saharan Africa.
FISEA has a budget of EUR 5m to support African companies and contributes to financing:
- Technical assistance missions for (i) organizational diagnostics in companies and FIs to identify their weaknesses and propose areas for improvement, as well as (ii) targeted advisory support for a function or product;
- Assistance programs set up by investment funds for companies in their portfolio.
This assistance benefits a wide range of actors, including SMEs, in the sectors of health, the agro-industry, the production/distribution of consumer goods, banks, micro-insurance and microfinance institutions.
It concerns the management of the company – both the financial and social management – as well as information systems, technical operations, marketing, etc.
To date, the capacity building programs developed by partner investment funds have mobilized the bulk of the financing allocated by the FISEA technical assistance budget. Indeed, they provide support to companies which, due to their small size, could not benefit from direct support from AFD Group.
1 This notion of corporate “performance” covers the objectives of efficiency (production), effectiveness (productivity), viability (profitability) and relevance (economic, social and environmental impacts).
Support fund for governance capacity building (FRCG)
In order to build the environmental, social and governance management capacities of its clients, Proparco mobilizes financing from the Support Fund for Governance Capacity Building (FRCG), which is managed by AFD.
Objectives of the mechanism
To help Proparco’s and, more generally, AFD Group’s client companies and financial intermediaries (FIs), develop best practices in a particular area (social and environmental responsibility, staff representation, financial governance…) by cofinancing studies (diagnostics, action plans…) or technical assistance and training services.
FRCG also helps bring FIs, first and foremost microfinance institutions and small local banks, into compliance with AFD Group requirements for governance, transparency and financial ethics – a prerequisite for any Group financing.
Elibigility and financing conditions
AFD Group’s partner companies and financial institutions, located in the poorest countries or in priority countries for French cooperation (Sub-Saharan Africa and the Southern and Eastern Mediterranean).
The cofinancing allocated to each technical assistance mission by FRCG ranges between EUR 10,000 and EUR 50,000. The assistance project is required to include a minimum of 25% of self-financing by the company.
THE CHIAKA SIDIBÉ HOTEL SCHOOL
CHIAKA SIDIBÉ, MALI’S FIRST WORK-STUDY HOTEL SCHOOL, BEGAN OPERATING IN BAMAKO IN 2015 WITH THE AIM OF EXPANDING HOSPITALITY TRAINING OPPORTUNITIES IN THE COUNTRY.
©Sébastien Rieussec