(Ecofin Agency) - Proparco, the private arm of the French Development Agency (AFD), has pledged a guaranteed loan of €3 million to Société Générale's subsidiary in Mozambique to support small and medium-sized enterprises (SMEs).
The guarantee will target companies operating in high-impact sectors, with a focus on agribusiness. The agreement will also support women-owned businesses.
"Proparco is pleased to be able to count on a key partner like Société Générale to support SMEs in a country where financial inclusion remains a huge challenge. By targeting women entrepreneurs and the agricultural sector, this project addresses important development issues and will have a major impact on Mozambique," said Siby Diabira, Proparco's Regional Director for Southern Africa.
This operation, which marks the first commitment of Proparco to Societe Generale Mozambique, is part of the French initiative "Choose Africa," which aims to back SMEs and startups on the continent with up to €3.5 billion over the period 2018-22.
The French banking group has initiated a strategic program in Africa aimed at increasing its exposure to SMEs, encouraging the development of innovative financial solutions adapted to local markets. This partnership with Societe Generale Moçambique will help support the agricultural sector through SMEs, which employ a considerable part of the country's workforce.