Proparco Invests $1bn In Nigeria’s Economy In 15 Years

Proparco, a French development finance institution, said it has been in operation in Nigeria for 15 years with a total of $1 billion invested over the period.

Since its inception in Nigeria in 2008, Proparco has focused its efforts on partnering local and Pan-African financial institutions, investment funds, growth stage companies as well as startups within the renewable energy, agribusiness and tech space.

The goal of these investments is to improve the lives of Nigerians by providing access to essential needs such as electricity and financial services.

Proparco provides loans, equity, guarantees and technical assistance aimed at strengthening its customers’ financial capacity or bearing part of their risk. The bulk of its commitments are intermediated via Nigerian banks and investment funds, which finance SMEs and start-ups in key development sectors such as agriculture, healthcare, education, energy, and financial services.

Proparco’s CEO, Françoise Lombard during her visit to Nigeria said:  “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.”

He stated that, “this is why we aim to concentrate a large share of our resources in the continent. 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.”

He added that, over the last 15 years in Nigeria, Proparco has grown to become one of the prominent partners catalysing growth in the finance, tech, energy, and climate sectors.

Regional director of Proparco in Nigeria, Jean Guyonnet-Dupérat, noted that, “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.”

On some of its impact in Nigeria, Guyonnet-Duperat stated that, “In 2022, Proparco and the European Union (EU) supported Nigerian bank, First City Monument Bank Ltd (FCMB), through the financing of a €325,000 technical assistance (TA) programme. This programme will enable the bank to develop its non-financial services offer, aimed at improving the financial inclusion of local Very Small and Medium Enterprises (VSEs) and women entrepreneurs, and to support them in their entrepreneurial process.

“In 2022, Proparco announced a $20 million Trade Finance Guarantee Facility for Coronation Merchant Bank (CMB). This will enable Coronation Merchant Bank to establish and deepen partnerships with correspondent banks, thereby increasing access to trade finance in Nigeria.”

Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world.