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Proparco and IFC: a partnership to address the food security challenges in Madagascar and Nigeria

Project

Agriculture and agri-food
Signature date
Location
Nigeria, Madagascar, Multi-country Africa
Financing tool
Guarantee
Financing amount (Euro)
92330000
Financing details
USD 100,000,000.00 guarantee
Customer
International Finance Corporation
Type of customer
Financial institution
Project number
PZZ1707
Environmental and social ranking
IF-C
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

This initiative is part of the Alliance for Entrepreneurship in Africa, under which Proparco and IFC have joined forces to provide a concrete response to the food security challenges in Africa (thus contributing to the achievement of SDG 2 “Zero hunger”). At the same time, it will support the development of African SMEs, which are a major vehicle for economic growth and job creation.

Project description

The International Finance Corporation (IFC) and Proparco have signed a risk-sharing agreement covering a package of Trade Finance operations worth a joint USD 200m. As part of this deal, Proparco will provide up to 50% (USD 100m) for some of the exposures of IFC’s Trade Finance Guarantee Program (TFGP) in Africa. The first phase of this operation aims to strengthen food security in several African countries. In a second phase, Proparco and IFC will step up their joint action in other African regions. 

The partnership also includes a training component designed specifically for SMEs to increase their proficiency in the use of the Trade Finance tools essential to the secure development of their import/export activities. A second component will help consolidate banks’ practices in the fight against money laundering and terrorist financing, a key issue for IFC and Proparco.