PROPARCO signs a EURIZ guarantee with Equity BCDC

July 5th – Equity BCDC and Proparco have just signed a EURIZ portfolio guarantee for an amount of EUR 10 million (denominated in USD) aimed at supporting Small and Medium Enterprises (SMEs) in the Democratic Republic of Congo (DRC). Just over a year after signing a first guarantee aimed at supporting Congolese SMEs affected by the effects of the COVID19 crisis, Proparco and Equity BCDC are renewing their partnership for the benefit of the development of Congolese SMEs.

While SMEs contribute significantly to job creation, sustainable economic growth and improved access to goods and services such as health, education and renewable energy, they suffer from a financing gap which hinders their development. In the DRC, only 6% of the population is banked. Equity Banque Commerciale du Congo (Equity BCDC) and Proparco have made the financial inclusion of the least well-served populations a pillar of their respective strategies.

The EURIZ guarantee granted to Equity BCDC for an amount of EUR 10 million (denominated in USD) benefits from the financial support of the European Union and the Organization of African, Caribbean and Pacific States (OACP).

Thanks to this EURIZ guarantee, Equity BCDC will continue to increase its financing in favour of high-impact SMEs, in particular those owned by women and young adults, in line with Proparco’s new strategy 2023-2027 “Acting together for more impact” aiming to reduce gender inequalities and financial inclusion.

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Fiji development Bank signs a loan guarantee agreement with AFD

The French Development Agency (Agence Française de développement/AFD) provides a loan guarantee to the Fiji Development Bank (FDB) through the issuance of the EURIZ guarantee. The agreement will allow FDB to expand its MSME/SME financings where the target beneficiaries of this guarantee include MSMEs and SMEs with high developmental impact.

FDB chief executive officer Saud Minam acknowledged AFD and the European Union for this collaboration with the development bank, which is the first of its kind for the South Pacific. Mr Minam highlighted that the total amount of the guarantee commitment under this agreement is three million euros (EUR 3,000,000): “This collaboration is a significant boost for our economy providing the much-needed avenue to further support the growth of small businesses,” said Mr Minam.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad said while FDB has the full support of the government, it is pleasing to see the bank engaging with international partners that would assist in reaching out to more people. This collaboration is expected to significantly add to FDB’s capacity to lend to MSMEs in Fiji.

Philippe Orliange, Executive Director for Geographies at AFD who travelled from Paris to Suva to witness this signing, declared that as public development banks, FDB and AFD have an important role to play in the fight against climate change: channelling public and private finance towards green investments to support mitigation and adaptation from the community level to the regional one.