Risk Distribution Partnership IFC-Proparco

Project Case Study | Partnerships

The Alliance for Entrepreneurship in Africa’s (AforE) project-driven platform has been a driving force in facilitating partnerships and collaborations among its members. One such partnership formed between the IFC and Proparco, with the goal of increasing access to sustainable trade finance in emerging African markets and promoting intra-African trade.

Through the AforE platform, this partnership has been able to take concrete actions to achieve their common goal. The first action IFC and Proparco will undertake is the establishment of a Risk Distribution Partnership. Through this partnership, Proparco will risk-participate in 50% of IFC’s Global Trade Finance Program (GTFP) exposures in selected Sub-Saharan African countries, for up to US$500 million. This collaboration will increase access to trade finance in the region and prioritize intra-Africa trade transactions, in line with IFC’s Paris Alignment Framework for financial intermediaries.

To further strengthen and support the region’s financial institutions, IFC and Proparco will jointly secure funding to expand IFC’s training and capacity-building programs for African financial institutions.

This will enhance their trade finance skills and help them meet specific transparency standards, such as detecting trade-based money laundering. Such efforts are crucial for maintaining trade and financial relations with global markets.

In addition, IFC and Proparco will also direct funding towards trade finance training programs for SME exporters and importers in low-income, fragile, and vulnerable economies. These training programs have seen significant demand, as SMEs often face high rejection rates when requesting trade finance. This initiative will support these businesses, facilitate access to trade finance in Africa, and boost intra- African trade.

The formation of this partnership and the actions taken by IFC and Proparco would not have been possible without AforE’s project-driven platform.

Through its focus on fostering collaborations and driving meaningful change in Africa’s entrepreneurial ecosystem, AforE has been instrumental in bringing these two core members together. As the partnership continues to make strides in promoting sustainable trade finance in the region, it is a testament to the power of collaboration and the impact of AforE’s platform in driving positive change in Africa.

Janngo Capital Start-Up Fund

Project Case Study | Partnerships

Project overview

Janngo Capital Startup Fund is a new venture capital fund targeting startups operating in the digital and technology sectors in Sub-Saharan Africa. Janngo represents one of the first venture capital funds with a focus on West Africa and a significant exposure to Francophone Africa, and raised by a team composed of people who have been entrepreneurs themselves or have held management positions within technology companies.

Replication Potential: The Fund backs local start-ups founded and managed by young and local entrepreneurs, and which address local market needs with a high degree of replicability within the region.

The Fund is managed by Janngo Capital Partners, founded by a fully independent team based in Abidjan (Côte d’Ivoire and Paris. The team is currently made up of ten professionals with strong backgrounds led by a female founder, Fatoumata Ba.

The Fund intends to generate financial returns coupled with a significant developmental impact, especially among youth and women. The Fund adhered to the 2X Challenge criteria for funds.

Milestones

Approach and Impact

The Janngo team will implement a proactive approach to maximize value, drawing on their extensive operational experience. The Fund aims to make a significant social impact by focusing on start-ups that offer digital solutions to the population and to African SMEs, providing them affordable access to (i) markets, (ii) financial services, and (iii) tools to expand their businesses.

Cooperation Among Alliance Members

The European Investment Bank (EIB) played a crucial role in securing funding for the Boost Africa initiative by initially allocating a EUR 10m catalytic tranche. This initiative is backed by the European Commission and aims to support economic development in Africa.
Alliance members Proparco and the African Development Bank (AfDB) committed their support and successfully contributed to the first closing of the Fund in June 2022. This joint effort resulted in a first closing at EUR 34m, surpassing the minimum requirement of EUR 30m.

The Fund is in the process of completing its fundraising and is projected to exceed its targeted amount of EUR 60m. Expansion of partnerships with other Alliance members is anticipated to continue, with new members expected to join in 2024.