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Senegal: a Choose Africa Resilience guarantee to BICIS to support SMEs
Project
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Signature date
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Location
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Senegal
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Financing tool
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Financing amount (Euro)
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1524490
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Financing details
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FCFA 1bn guarantee
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Customer
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BICIS DAKAR
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Type of customer
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Financial institution
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Project number
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CSN1717
This project is carried out with the support of the European Union.
The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union. This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has granted a Choose Africa Resilience guarantee to BICIS to cover the allocation of loans to Senegalese small and medium-sized enterprises affected by the Covid-19 crisis.
Client presentation
Proparco and the International Bank for Trade and Industry of Senegal (BICIS) have been working together since 2005. The bank is one of the main beneficiaries in Senegal of the risk-sharing mechanisms deployed by AFD Group. BICIS has supported some 400 MSMEs through this mechanism. This operation is the 6th portfolio guarantee program between AFD Group and BICIS.
Project description
The Choose Africa Resilience guarantee granted by Proparco will cover the allocation by BICIS of XOF 1.25bn of loans to Senegalese small and medium-sized enterprises.
Since 2005, Proparco and BICIS have gradually strengthened their partnership to support an increasing number of MSMEs. This Choose Africa Resilience portfolio guarantee will allow BICIS to offer loans with an 80% guarantee from AFD Group to Senegalese small and medium-sized enterprises weakened by the Covid-19 health crisis, under the new Resilience component of the French Choose Africa initiative. The Resilience component has been made possible through support from the French Government. It was launched in November 2020 in response to the crisis.
Project impact
Once BICIS has examined the financing requests, companies with less than 200 employees affected by the crisis may be allocated loans with maturities ranging between 12 and 48 months. These loans may amount to up to 3 months of the turnover in 2019. This guarantee will thereby allow Senegalese small and medium-sized enterprises to access financing to develop and continue their activity.