(Ecofin Agency) - This initiative strengthens the longstanding partnership between the Senegalese bank and Proparco.

French private sector financing institution in developing countries, Proparco, announced on Friday, November 17, the provision of a portfolio guarantee to the Senegalese subsidiary of the French banking group Société Générale.

According to information made available, the guarantee will cover 50% of the loans granted by the bank to very small enterprises (VSEs) and small and medium-sized enterprises (SMEs). The mechanism will enable Société Générale Senegal to expand its financing offerings to VSEs and SMEs without compromising its risk profile.

Through this agreement, Proparco reaffirms its support for Société Générale Senegal, with whom it has been in partnership for many years. The French financial institution has previously approved guarantees to support the Senegalese bank’s corporate loan offers. The most recent of these agreements were concluded in December 2020 and February 2021.

Proparco claimed that nearly 454 businesses operating in the sectors of trade, transport, and agriculture have indirectly benefited since 2005 from its risk-sharing mechanism deployed in Senegal through partner banks.