Makutano 7: AFD invests USD 10 million in XSML, a financial structure specialized in supporting SMEs

Ten (10) million US dollars granted to XSML as a direct investment in this financial structure specialized in supporting SMEs. This is the meaning of the partnership signed between the French Development Agency (AFD) and XSML, a fund manager.

To continue its work in supporting and financing SMEs in the African region, XSML launched the ARF III fund, one of the only initiatives of its kind in three countries.

The fund thus plays a critical role in the development of the local entrepreneurial fabric and in the ability of these economies particularly affected by the health crisis to recover and rebuild.

This transaction enables AFD Group via PROPARCO to fully play its role in supporting SMEs in Central Africa within the framework of the Chose Africa initiative.

ARF III's support for this new initiative will help achieve three objectives. In particular, it is a question of supporting and accompanying the SME segment in countries where access to financing remains limited.

It is also a question of creating jobs: the fund expects to create or maintain 2,600 direct jobs over 10 years.

Finally, it will contribute to women's entrepreneurship and employment, with 30% of the companies financed having to demonstrate this commitment.

XSML is a social impact fund manager with extensive experience in financing small and medium-sized enterprises in Central Africa, acquired in particular through the successive deployment of the Central African SME Fund and the African Rivets Fund.

Proparco is a subsidiary of AFD Group dedicated to the private sector. It has been working for 40 years to promote sustainable economic, social and environmental development.

Proparco participates in financing and supporting companies and financial institutions in Africa, Asia, Latin America and the Middle East.

PROPARCO's sectors of intervention are infrastructure with a focus on renewable energy, agribusiness, financial institutions, health, education, etc.

Source: zoom-eco.net/