Proparco

Organizational profile:

Proparco is a subsidiary of the AFD Group (Agence Française de Developpement) focused on private sector development. It has been promoting sustainable economic, social and environmental development for over 45 years. Proparco provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle East. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education. Its operations aim to strengthen the contribution of private players 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 creating jobs and decent incomes, providing essential goods and services and combating climate change. It offers several categories of financial products, which cover the bulk of the financing needs of the private sector in southern countries. Proparco’s action bridges the gaps of local financial systems that are not always able to provide appropriate financing for the needs of their economies. By implementing a full range of financial instruments, from senior loans to equity, including convertible bonds and guarantees, Proparco can meet most of the financing needs that would not be covered by private actors. 

Proparco's portfolio includes investments in sustainable forestry, including agroforestry.

Financing Instrument: Equity, Loans, Convertible Bons, Guarantees, Technical Assistance

Project scale: Proparco offers loans (from EUR 3m to EUR 100m), in foreign or local currency, to companies and financial institutions with long maturities (up to 20 years) and a grace period for the repayment of capital where warranted. Recent forest-related investments have ranged from EUR 5.2 million to 14.4 million.

Recipient countries/regions/country groups: Africa, Asia, Latin America and the Middle East

Recipient categories: Businesses, Financial Institutions

Eligibility Criteria:

For Proparco, a “good project” is a profitable project, in line with its mandate and strategic orientations, led by a sound client, which will have impacts – particularly social and environmental impacts – on local development.  Proparco supports the development of companies and financial institutions that are active in key development sectors (infrastructure, agriculture, industry, finance, social services…) – both local actors and French companies established in the South or seeking to develop subsidiaries there. 

Proparco’s operations are complementary to the product ranges of local and international commercial banks and avoid any disturbance on the competitive financial market. Its operations focus on sectors where its assistance is most needed and where it has the highest added value. All financing decisions are based on an in-depth analysis of the various risk factors (financial, legal and technical) related to its client and its project: reliability of accounts, quality of in-house governance, etc. Proparco also assesses the capacity of the companies it finances to withstand and recover from potential shocks (resilience), which is essential to ensuring that its investments are relevant and viable.

Application guidelines: Contact Proparco directly at proparco@proparco.fr.

Last updated: 14 September 2023