Promoting financial inclusion for microentrepreneurs in Madagascar

Baobab Banque Madagascar has been established in Madagascar for almost 18 years and is a subsidiary of Baobab Group, a leader in microfinance in Africa. The bank’s extensive range of modern and inclusive financial services makes it an important partner. Baobab Banque Madagascar currently has 36 branches, 300,000 clients and 850 employees.

Baobab Banque Madagascar has signed a EUR 2m portfolio guarantee with Proparco. The operation shares the risks related to the bank’s microfinance activity. This portfolio guarantee is part of Program 209 implemented by the French Ministry for Europe and Foreign Affairs on behalf of the French State. Its action contributes to tackling the major global challenges (such as health, climate, biodiversity, decent employment, and financial inclusion), while focusing the French State’s financial effort on the least developed countries. The bank will thus be able to step up its action for financial inclusion among microenterprises that provide a livelihood for vulnerable people in the country’s urban areas.

The project aims to promote access to viable and sustainable financial services for highly vulnerable and at-risk microentrepreneurs. The bank has 850 employees, 54% of whom are women, meaning the project qualifies under the 2X Challenge.