Proparco and Société Générale grant €15m to SMEs in Burkina Faso
The line of credit is intended to support investment by local SMEs.Proparco and Société Générale (SG) signed a new financing agreement providing for a €15 million line of credit to SG Burkina Faso.
It aims to support investment by small and medium enterprises (SMEs).
"This support for businesses, which are the pillars of economic growth, is part of the overall approach of the two institutions: supporting growth drivers in Africa and supporting the local economy," according to officials at Proparco.
The institutions explained that this initiative will help diversify funding sources for SG's African subsidiaries and provide financing for local businesses.
AFD, the parent of Proparco, and Société Générale have also partnered in the program ARIZ, a risk sharing mechanism set up by AFD for SMEs.
Collateral provided by AFD covers part of the risk, which allows Société Générale to provide additional loans for SMEs.
In Burkina Faso, SMEs constitute the bulk of the private sector, representing 80 percent of businesses.