• Proparco grants €20 million guarantee to NSIA Bank
• Facility covers 50% of SME loan risk
• SMEs account for 67% of Benin GDP

Proparco, the private sector financing arm of the AFD Group, has provided a €20 million ($23.6 million) portfolio guarantee to NSIA Bank Bénin, a subsidiary of Côte d’Ivoire’s NSIA Group.

The financing is intended to support small and medium-sized enterprises (SMEs) in Benin. The agreement, granted under the ARIZ risk-sharing mechanism, was signed on Wednesday, Feb. 25.

The guarantee will cover up to 50% of the credit risk on loans extended to SMEs, easing access to finance for firms that face structural constraints, including limited collateral.

“Thanks to this guarantee, NSIA Bank Bénin will be able to offer better tailored and more competitive financing solutions to support growth, innovation and job creation,” said Anicet Okoma, managing director of NSIA Bank Bénin.

By backing SMEs, the bank is supporting a segment that plays a key role in the economy. According to available data, micro, small and medium-sized enterprises accounted for 40% of economic output in 2021 and 67% of GDP. Stringent collateral requirements remain one of the main obstacles for many entrepreneurs, despite the viability of their projects.

The initiative is part of broader efforts by the Beninese authorities and their partners to promote entrepreneurship and strengthen small businesses. In this context, Benin launched the 2022–2029 Entrepreneurship Support Project (PAEB), backed by about $36 million to promote inclusive and sustainable MSMEs that create green jobs, with digitalisation as a strategic lever.

The 2024-2029 strategic plan of the Small and Medium Enterprises Development Agency (ADPME) aims to strengthen the MSME sector sustainably so it can contribute more fully to the structural transformation of the economy by 2029.

SG