Proparco and Ecobank Senegal collaborate for the first time to strengthen access to financing for Senegalese SMEs

Ecobank Senegal is a subsidiary of the pan-African banking group Ecobank Transnational Incorporated (ETI), a strategic partner of the AFD Group with which Proparco has worked for many years, in particular through the granting of guarantees for the benefit of several of its subsidiaries. Thus, for 10 years, Proparco has in particular granted several senior loans and subscribed as an anchor investor to the inaugural ETI bond alongside the FMO. ETI is also the first partner of Proparco's Trade Finance program, through several guarantee envelopes intended to cover the credit risk of four of its subsidiaries. This is Proparco's first operation with the group's Senegalese subsidiary, which today celebrates the signing of two portfolio guarantees ARIZ and EURIZ, for respectively €2 million and €4 million in XOF equivalent.

By offering guarantees covering a significant portion of loans granted to their customers, ARIZ and EURIZ facilitate access to credit by reducing the risk taken by banks. This key financial intermediation tool is particularly suited to the specificities of the Senegalese economy.

The ARIZ portfolio guarantee with 50% coverage is one of AFD Group's emblematic tools, particularly effective in encouraging investment and job creation within SMEs operating in many sectors of activity. (agriculture, health, industry, microfinance, transport, etc.). The EURIZ guarantee, which benefits from the support of the European Union and the African, Caribbean and Pacific Group of States (OACPS), will allow Ecobank Senegal to support investments of VSMEs with high development impact by sharing 70% credit risk. It specifically targets the social sectors, agriculture, investments with climate co-benefits and companies owned or managed by women.

These loan offers guaranteed by Proparco are part of the French initiative Choose Africa, implemented by the AFD Group, and which aims to commit 3.5 billion euros to the benefit of start-ups. , VSEs and African SMEs over the period 2018-2022.

"With this partnership, Proparco wishes to support the financial inclusion of Senegalese entrepreneurs. This first collaboration with Ecobank Senegal will enable the bank to strengthen its activity in favor of VSMEs and promote their access to financing," said Pierre Maspoli, Proparco Manager in Senegal.

For Sahid Yallou, Managing Director of Ecobank Senegal, "supporting SMEs is a duty for any local bank. We are particularly proud to be able to count on our partner Proparco to bring flexibility and depth to our financing dynamic for SMEs and more particularly those run by women. ".

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About Proparco

A subsidiary of the Agence Française de Développement group (AFD Group) dedicated to the private sector, Proparco has been working for more than 40 years to promote sustainable development in economic, social and environmental terms. Proparco participates in the financing and support of companies and financial institutions in Africa, Asia, Latin America and the Middle East. Its action focuses on key development sectors: infrastructure with a focus on renewable energies, agro-industry, financial institutions, health, education... Its interventions aim to strengthen the contribution of private actors to the achievement of the Sustainable Development Goals (SDGs), adopted by the international community in 2015. To this end, Proparco finances companies whose activity contributes to the creation of jobs and decent incomes, the provision of essential goods and services, and the fight against climate change. For a world in common. More information on www.proparco.fr

About Ecobank

Ecobank Senegal is a subsidiary of the Ecobank Group, the leading independent pan-African banking group. The Ecobank Group employs over 13,000 people serving more than 32 million customers in the retail, commercial and wholesale banking sectors in 35 African countries. The Group has a banking license in France and has representative offices in Addis Ababa in Ethiopia, Johannesburg in South Africa, Beijing in China, London in the United Kingdom and Dubai in the United Arab Emirates. The Group offers a full range of banking products, services and solutions including bank and deposit accounts, cash management, advisory, trading operations, securities trading and wealth management. ETI is listed on several stock exchanges namely London Stock Exchange in London, Nigerian Stock Exchange in Lagos, Ghana Stock Exchange in Accra and the Bourse Régionale des Valeurs Mobilières in Abidjan. For more information, please visit www.ecobank.com

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