Proparco, AFD’s subsidiary dedicated to the private sector, has for almost 40 years been supporting sustainable development in 73 countries around the world (Africa, Asia, Latin America or the Middle East) where it finances and supports projects and companies. Its activity focuses on key development sectors: infrastructure with a focus on renewable energy, agribusiness, finance, health, education, etc.
Proparco has been operating in Ghana for 25 years and the country ranks second in West Africa in terms of the size of its portfolio, with $ 190 million of investments signed with eight institutions.
Proparco’s financing, in debt, equity or subordinated debt leads to an injection of long term funds in hard currency in a country which needs it to finance its economic growth.
Proparco particularly supports the financial sector, and has positioned itself as a key partner of banks which support the private sector. Proparco has forged strong links with some local financial institutions with financing amounting $ 120 M. In the first place, Proparco supported traditional banks (mainly belonging to the second quartile, such as SG Ghana, CAL Bank, Fidelity Bank or Access Bank), in order to indirectly finance local companies and infrastructure projects. Proparco also funded financial institutions specialized in SME banking and mortgage companies for the middle class (HFC, Ghana Home Loans).
Proparco is also active in infrastructure projects in Ghana. It has supported the electricity sector by providing funding for the Takoradi Thermal Plant (110 MW combined cycle at an amount of $ 55.5 million).
In the area of agribusiness, Ghana Rubber Estates Ltd. (GREL) also received funding for the expansion of its plantations and to increase its plant production capacity.
Finally, Proparco could make some indirect investments in local SMEs through investments done in some private equity funds. Similarly, Proparco is a shareholder of some companies active in Ghana through equity investments realized in holding companies (like FanMilk or BOA Group).