Equity investment by Proparco in the Georgian bank Credo

Credo is the leader in the microfinance market in Georgia and obtained a banking license in 2017, allowing it to expand its range of financial products for its clients. While microcredit for rural people in Georgia remains its core business, two years after it became a bank, Credo has managed to develop an appropriate range of products for SMEs. With support from its shareholder Access Holding, Credo has also developed its procedures, systems and teams in order to launch its retail banking activity (current accounts, deposits, transfers) and online banking activity.

Proparco has become a 15% shareholder of Credo to finance its organic growth and the acquisition of JSC Finca Bank, making Credo the 6th largest lender in Georgia.

This project is part of the 2X Challenge initiative. This multilateral initiative aims to support projects that empower women as entrepreneurs, business leaders, employees, consumers of products and services and increase their participation in the economy. This initiative thereby contributes to Sustainable Development Goal 5 on Gender equality. 

The main expected impacts are as follows:

• 23,500 jobs supported over the next 5 years
• Access to some 139,000 microcredits and support for 250 SMEs
• In terms of gender, 52% of clients are women. In this respect, the operation qualifies for the 2X Challenge initiative to reduce gender inequality. 

More generally, the project is contributing to financial stability in Georgia, by consolidating the Georgian banking sector which, besides the two largest banks in the country, remains highly fragmented.

Through these various expected impacts on development, the project will contribute to SDGs 5 (Gender equality), 8 (Decent work and economic growth) and 10 (Reduced inequalities).