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A guarantee demonstrates its value when a credit committee approves a loan it would otherwise have declined. Proparco and the European Union launched Impact+ at AFIS 2025, supported by a €178 million EU counter-guarantee, with the aim of mobilising €1.1 billion in guarantees over five years. The facility covers up to 80% of the principal on loans ranging from €500 to €2 million, denominated in local currency, euros or dollars. It succeeds EURIZ, which shared SME credit risk with African banks from 2019 onwards. One year later, financial institutions, Proparco and the European Union compare their results and set out the conditions required to finance African SMEs at scale.
Key points
- Which risks should guarantors bear, and at what coverage rate and price does a bank revise its credit decision?
- Which segments does a guarantee open up? Fragile markets, agriculture, climate, and enterprises led by women and young people?
- What do banks require in order to continue lending to these SMEs at scale once the guarantee has expired?