Proparco, the private sector arm of the French Development Agency (AFD), signed with Société Générale a funding agreement to support its operations across Africa. According to this agreement, the French institution is to provide a €15 million credit line to Société Générale Burkina Faso. The money will be used to support, financially, local SMEs, the institution said in a statement.

“Through this agreement, Proparco and SG Burkina Faso provide expanded financial resources to companies in Burkina Faso. This support to firms, which are the key to economy’s growth, falls under both institutions’ strategy to contribute to growth in Africa and support local economy,” the statement said.

By providing loans and acquiring stakes or guarantees, Proparco funds and support firms and financial establishments in Africa, Asia, South America and Middle East. On May 19, 2016, the group signed with SG Cameroon, a FCFA13bn (€19.8 million) loan agreement.

With an exposure of €80 million, total amount of loans granted by Proparco to its African units, Société Générale positions itself as Proparco’s leading partner in Africa.

The French institution lends to other establishments also. Such was the case in December 2015, when it provided FCFA26 billion (€39.6 million) to BPCE’s Cameroonian subsidiary, BICEC.

Idriss Linge