On the occasion of the French Presidency of the Council of the European Union, Proparco and the EU are continuing their partnership with the granting of a €5 million line of credit to the Malagasy microfinance bank AccèsBanque Madagascar. This line of credit will be guaranteed by the European Fund for Sustainable Development (EFSD), the financial arm of the EU’s External Investment Plan and EU support tool for the private sector, implemented by Proparco.
The project will allow the development of a fabric of SMEs, micro-enterprises and the creation of a pool of jobs for the country. The objective is to support businesses in Madagascar and increase investment for development. The financial inclusion of the Malagasy populations is one of the priorities of France and its partners, to guarantee inclusive and sustainable growth in the country.
According to the World Bank, 29% of households in Madagascar have access to formal financial services and 3% to bank loans. Covid-19, which has affected this economy like many others on the continent, has further limited access to financing and affected business activity. The EU and its partner Proparco will contribute via the Fedd tool to strengthen access to financing in Madagascar.
A subsidiary of the AFD Group dedicated to the private sector, Proparco has been working for more than 40 years to promote sustainable development in economic, social and environmental terms. Its interventions aim to strengthen the contribution of private actors to the achievement of the Sustainable Development Goals (#SDGs) adopted by the international community in 2015.