Emmanuel OchayiProparco, the French development finance institution, is celebrating 15 years of impactful operations in Nigeria, reaching a remarkable milestone of USD 1 billion in investments.
The organization has strategically focused on collaborations with local and Pan-African financial institutions, investment funds, growth-stage companies, and startups in sectors such as renewable energy, agribusiness, and technology.
Join our WhatsApp ChannelProparco offers sector-based expertise and a range of financial solutions tailored to different stages of business development, including its Digital Africa subsidiary and Propulse technical assistance offering designed to enhance the impacts and performance of its partners
These investments have aimed to enhance the quality of life for Nigerians, providing access to essential services like electricity and financial resources.
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Background: Proparco’s Mission in Nigeria
Since its establishment in Nigeria in 2008, Proparco has been dedicated to enhancing its customers’ financial capabilities and sharing the risk burden by providing loans, equity, guarantees, and technical assistance. The majority of its commitments are facilitated through Nigerian banks and investment funds, supporting SMEs and startups in key development sectors including agriculture, healthcare, education, energy, and financial services.
Proparco’s African Commitment
In 2022, Proparco’s global commitments totaled 2.3 billion euros, with 45% directed towards African businesses. To sustain this commitment, Proparco introduced various initiatives over the years:
- Digital Africa: A subsidiary focused on supporting high-impact digital tech startups.
- Venture Capital Activity: Targeted at African startups.
- Choose Africa: An AFD Group initiative that has committed 3.5 billion euros between 2018 and 2022, supporting thousands of businesses and micro-entrepreneurs.
These strategies align with the 2023-2027 plan, aiming to address long-term challenges related to food security, inequality, and climate.
“Africa holds the answers to many of the major challenges of the 21st century, and unlocking its entrepreneurial dynamism is at the core of our strategy for the next five years,” stated Proparco’s CEO Françoise Lombard during her visit to Nigeria. “As we mark an important milestone in Nigeria, we are committing to support the African private sector more effectively by enabling entrepreneurs to unleash their potential.”
Impact in Nigeria
Over the last 15 years, Proparco has emerged as a prominent partner driving growth in Nigeria’s finance, technology, energy, and climate sectors. Collaborating with its parent company, Agence Française de Développement (AFD), the group has played a vital role in enhancing Nigeria’s energy infrastructure, including renewable energy and transmission and distribution networks.
Jean Guyonnet-Dupérat, Regional Director of Proparco in Nigeria, praised Nigerian entrepreneurs, stating, “Nigerian business people are extremely bold entrepreneurs with an unshakable dynamism. Our commitment as financial partners is to build trust and support them with the expertise and financial tools they need to grow beyond their target. Together, we serve one common objective: building a prosperous and sustainable future.”
Key Highlights of Proparco’s Impact in Nigeria
In recent years, Proparco has made several significant contributions to Nigeria’s economic development:
- In 2022, Proparco and the European Union (EU) supported First City Monument Bank Ltd (FCMB) with a €325,000 technical assistance program, aiming to enhance the financial inclusion of local Very Small and Medium Enterprises (VSEs) and women entrepreneurs.
- In 2022, Proparco announced a $20 million Trade Finance Guarantee Facility for Coronation Merchant Bank (CMB), boosting access to trade finance in Nigeria.
- In 2022, Proparco invested $5 million in Ventures Platform, supporting innovative startups in IT services, including Traction Apps, which assists SMEs in managing their operations.
- In 2021, Proparco supported FCMB with a $35 million loan and an EURIZ portfolio guarantee of NGN 5 billion, leading to renewable energy projects and job creation.
- In 2021, Proparco funded Metro Africa Xpress Inc. (“MAX”), the largest vehicle subscription platform for low-to-zero emission vehicles in Africa.
- In 2021, Proparco provided a portfolio guarantee to the United Bank for Africa (UBA) to facilitate loans for Nigerian SMEs, with a specific focus on the education sector and women-led SMEs.
Proparco’s New “Acting Together for Greater Impact” Strategy
Proparco’s new strategy revolves around three key challenges:
- Acting for a More Sustainable and Resilient Economy: Strengthening local economies in vulnerable African regions and improving access to economic opportunities for private sector actors.
- Acting for Our Planet: Focusing on climate change mitigation, adaptation, and biodiversity protection through financing that supports clients in their climate transition.
- Acting for Greater Equality: Reducing inequalities, promoting a just transition, and addressing socio-territorial, gender, and socio-economic disparities.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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