2009 annual report proparco

151, rue Saint-Honoré - 75001 ParisTel.: +33 1 53 44 31 08 - Fax: +33 1 53 44 38 38www.proparco.fr

Annual report2009

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GEOGRAPHICAL AND SECTORAL BROCHURES

• PROPARCO in Sub-Saharan Africa• PROPARCO in China• Financing access to sustainable energy • Supporting responsible microfinance• FISEA: Getting involved and investing in African businesses

FINANCIAL BROCHURES

• PROPARCO’s financial products in the Middle East• PROPARCO’s financial products in Morocco• PROPARCO’s financial products in Tunisia• PROPARCO’s financial products in West Africa

PRIVATE SECTOR & DEVELOPMENT MAGAZINE

Take out a free subscription to PROPARCO’s bimonthly magazine – a platform for debateon the role the private sector plays in developing countrieswww.proparco.fr

• N ˚ 5: Africa’s financial markets: a real development tool? • N ˚ 4: What are the economic and social Impacts of the mobile phone sector in developing countries? • N ˚ 3: What balance between financial sustainability and social issues in the microfinance sector? • N ˚ 2: How can the private sector help provide access to drinking water in developing countries?• N ˚ 1: SME financing in Sub-Saharan Africa

FILMS

Films about projects financed by PROPARCO (5 minutes long)

• Teatime in Gachege, Kenya• Sustainable cogeneration in Kenya• Financing private equity investment in Morocco• Financing microfinance in Morocco• South Africa: Supporting “Black Economic Empowerment” • Development and the private sector

WEBSITEVisit our website: www.proparco.fr

PublicationsAll our publications and films can be downloaded at www.proparco.fr, under Publications

ANNUAL REPORT 09INVESTING IN A SUSTAINABLE FUTURE

Matching inVEStORS’ FINANCIAL NEEDS p 34-39

LONG-TERM INVESTMENT in thE SOUth p 6-17

MEETING THE CHALLENGES OF Each REgiOn p 18-27

FOUR PRIORITY SEctORS p 28-33

KEY FIGURES 2009

Connecting 55 000 people to an electricity supply network

Reducing annual greenhouse gas emissionsby 2.2 million tons of CO2 eq

Supporting the CSR processes of 4 000 businesses

PROPARCO's FINANCING AND COFINANCING IN 2009WILL CONTRIBUTE TO:

Connecting 6 millionpeople to a telecoms network

Securing or creating 815 000 jobs

Boosting State revenues by €1 380M per year

SELEcting PROJEctS FOR THEIR IMPACTS p 40-45

OPERatiOnaL anD FinanciaL RESULTS p 46-53

APPENDIX p 54-61

KEY FIGURES 2009PROPARCO's FINANCING AND COFINANCING IN 2009WILL CONTRIBUTE TO:


BALANCE SHEET (iN €M)

887in 2005

950in 2006

987in 2007

1 984in 2009

1 629in 2008

in €M in %

NON-PERFORMiNG LOANS

36in 2005

53in 2003

5.5%

8.1%

12.7%

4.5% 4.5%

3.9%

2.6%

32in 2006

41in 2004

33in 2007

37in 2008

31in 2009

iNCOME (iN €M)nET BAnKinG inCOME nET inCOME

inCOME FROM ORDinARY ACTiViTiES BEFORE TAX

17

12

2523

27

35

30

2421

23

42

52

33

24

15

10

in 2005in 2004 in 2006 in 2007 in 2008 in 2009

129

COMMiTMENTS (iN €M)FOREiGn COUnTRiES FREnCH OVERSEAS

TERRiTORiESAFD SUB-PARTiCiPATiOn FiSEA

285

85 54

4268

172

65

33

314 488 552 766

30

62

263

1 121in 2009

789in 2008

598in 2007

401in 2006370

in 2005

ANNUAL REPORT PROPARCO 2009Long-term investment in the South6

ANNUAL REPORT PROPARCO 2009Long-term investment in the South 7

LONG-TERMINVESTMENT IN THE SOUTHOne of the cornerstones of development policie is to support the private sector. PROPARCO has provedthat its business model based on patient and responsibleinvestment is profitable and can catalyse private investmentin emerging and developing economies. It consequently giveslocal and international players incentives to investin a sustainable future.

BOARDOF DIRECTORS

DIRECTORS Jean-Michel SEVERINO Chairman (11)Michel JACQUIER Vice-Chairman (2)Jean-Jacques MOINEVILLEPierre JACQUET (16)

Gilles BERGIN (9)

Anne PAUGAM

PERMANENT REPRESENTATIVES

Agence française de développementJean-Michel DEBRAT

NatixisJean-Claude GARDETTE (6)

Crédit agricole SAEric HOTELLART (14)

BPCEJosiane LANCELLE (4)

Development bank of Southern AfricaAdmassu TADESSE (17)

BNP ParibasPhilippe SECHAUD (18)

CDC Entreprises élan PMEPascal LAGARDE (3)

DEGWinfried NAU (10)

Financière OCEORPhilippe GARSUAULT (12)

BMCE BankJaloul AYED

CORPORATE OFFICERS

ChairmanJean-Michel SEVERINO (11)

Chief Executive OfficerLuc RIGOUZZO (15)

Deputy Chief Executive OfficersPhilippe BASSERY (7) , Laurent DEMEY

NON-VOTING DIRECTORS AND OBSERVERS Statutory non-voting directors French Ministry of the Economy, Industry and Employment Thomas GROH

French Ministry of Foreign and European AffairsCyrille PIERRE (1)

Non-statutory non-voting directors Aga Khan Fund for Economic DevelopmentLutaf KASSAM

West African Development Bank Oumar DIARRA

CofaceMaëlia DUFOUR (13)

GDF Suez Micheline BOSSAERT (8)

Veolia eau Patrice FONLLADOSA (5)

GOVERNMENT COMMISSIONER

Daniel BESSON (19)

AFD WORKS COUNCIL REPRESENTATIVE

François JAY

AUDITORS

Société MazarsOdile COULAUD, Guillaume POTEL

Société KPMGArnaud BOURDEILLE , Malcom Mc LARTY

1 2 3 4 56 7 8 9

10 11 1213

14 15 16 17 18 1920


Things have now changed on all fronts: private businesses are

key players in developing economies and have grown aware that

they cannot be blinkered to the difficulties of the societies in

which they work. Public policymakers have in turn understood the extent to which businesses can be levers for development. Start-ups or newly established businesses bring vital public resources to an economy via their tax contributions and provide a stable income for populations in the grip of economic insecurity.But nowadays the private sector plays a role that goes well beyond simply creating wealth. Businesses have a number of impacts on the society, economy and environment in which they work and are consequently quite naturally a target for public policies: by helping them to improve their practices, it is possible to reach development objectives that standard public intervention is not able to achieve. Public players can support groups that engage in a responsible process by pro-viding their knowledge of South societies and the challenges they face. They can therefore help them go the extra mile in their commitment. Private players from both the North and South have also chosen to be vehicles for development policies in addition to their own economic targets. A business is a gateway to a vast network of salaried workers, suppliers and clients. In remote areas where public services are lacking, it is quite common to see businesses that make their health and edu-cation programs available to the whole population in the area where they are established. Businesses are more than simply targets or vehicles of public policies: they now also become stakeholders in them. They have long been key operators for essential services via public-private partnerships (drinking wa-ter, electricity supply) and are increasingly seen as developers of solutions for the poorest.

Support for the private sector was for a long time the poor cousin of developmentaid policies and took a back seat to support for public investment, social expenditure or“good governance” programs. At best, we spoke about improving the business environment.

The aim of these new forms of partnership between “developers” and “entrepreneurs” is not to create confu-sion between their respective roles and objectives, but to capitalise on synergies between public and private players. PROPARCO’s experience in recent years has shown that the convergence between the two has been much greater and much more profitable than one would have dared hope. Yet despite this observation, stumbling blocks to the develop-ment of the private sector continue to exist in a number of developing countries. Small and medium-sized enterprises continue to find it difficult to access financing, financial mar-kets are not well-structured and banks are reluctant to lend...The activity of financing investment for growth, sustainable development and achieving the Millennium Development Goals - the core mission for development finance institu-tions such as PROPARCO - consequently continues to face major challenges: development players have a role to play in supporting businesses in geographical areas (post-crisis countries, the least developed economies) or sectors (mi-crofinance, agriculture) where they would not have sponta-neously worked by reducing the risks that stem from these groundbreaking activities. These financial institutions may not be able to single-handedly create growth, but they can support it, boost it, consolidate it and orient it towards models that are sustainable from a social and environmental per-spective. By allocating loans, guarantees, long-term financing in local currency and developing private equity investment, PROPARCO’s staff help private initiatives get off the ground. Behind this day-to-day business of financing, there are the life projects of millions of men and women. Each one of them gives a real meaning to the growth in PROPARCO’s volume of activity.

JEAN-MICHEL SEVERINOCHAIRMAN OF PROPARCO

MESSAGE FROM

PROPARCO was created over thirty years ago on the conviction that the private sectorplays a key role in the development of South countries.

PROPARCO is a development finance institution with a governance structure that sets it apart from its European partners. It gathers thirty private and public shareholders from both the North and South that all share a common commitment to development.Its main shareholder is Agence Française de Développement (59%), a public institution with a mandate to implement France’s official development assistance policy. PROPARCO benefits from AFD support in terms of financial backing, its commercial network, geographical presence and human re-sources. PROPARCO tripled its capital in June 2008. This led

to an increase in the number of private shareholders which now hold 41% of its capital. These external partners - French and European banks and financial institutions and major African partners - provide invaluable support for governance and strategic piloting. The economic and financial crisis has underscored the extent to which the global recovery depends more than ever on South economies. PROPARCO’s North/South and public/private governance gives it an edge in terms of meeting the future challenges of this multi-polar and multi-player world.

French financial institutions

International financial institutions

26%

11%

BPCEBNP ParibasCrédit agricole SACDC Entreprises élan PMECofaceFinancière OCEORNatixis Société générale

Aga khan fund for economic developmentBMCE BankBanque de TunisieBank of AfricaWest African Development BankDevelopment bank of Southern AfricaDeutsche investitions –und entwicklungsgesellschaft / DEG

Agence française de développement

59%

Mr. Xavier de BayserIDEAM Natixis solidaire

Funds and ethical foundations

1%

French companies

3%BouyguesBouygues constructionDMCGDF SuezSagaSaur InternationalSES SASIPHSocotec internationalSomdiaa Veolia

Capital breakdown:

A NORTH/SOUTH COMMUNITYOF INVESTORS

a420M


LUC RIGOUZZOCHIEF EXECUTIVE OFFICER OF PROPARCO

INTERVIEW WITH

WE WILL REMEMBER 2009 FOR THE GLOBAL FINANCIAL CRISIS

WHICH DID NOT SPARE DEVELOPING COUNTRIES.

WHAT IMPACTS WERE THERE FOR PROPARCO?

Paradoxically, this crisis led to record growth for PROPARCO because we were widely called upon to offset the crunch on available finan-cial resources in South countries. PROPARCO fully played its coun-tercyclical role by supporting projects that had difficulty in obtaining financing from the banking system. Growth was fuelled by three main engines: Africa, where the volume of commitments reached an all-time high (€447M); in-frastructure projects: they are highly dependent on long-term financing which was in short supply; and the extension of our geo-graphical mandate to all developing countries. This opened up new prospects in Latin America and Asia.All these factors resulted in a record level of 1.1 billion euros of com-mitments for PROPARCO. The balance sheet reached 2 billion euros which is double the 2007 figure.

Despite the difficult context, as things stand most of our clients have held out well and we have been able to keep our risks under control. We have consequently had no losses directly linked to the crisis and the rate of non-performing loans at the end of 2009 reached its lowest ever level at 2.6%.

All the projects we finance are selected for the contribution they will make to PROPARCO’s three core missions: providing the poorest with basic services, promoting growth and employment and dissemi-nating high environmental and social standards.In Africa - PROPARCO’s first priority - we have, for instance, financed the initial public offering of an agribusiness company, the creation of a bank in the Democratic Republic of Congo, the construction of a seawater desalination plant in Namibia, the development of a net-work of telecom towers in Nigeria and we have invested in several investment funds specialised in SME financing. In the infrastructure sector, we have supported the development of road transport in Tunisia and Jamaica, air transport in West Africa and maritime trans-port in Djibouti. In other sectors, we have promoted access to water (water supply in the city of Amman) and, of course, energy (hydro-power plants in Lao PDR and Pakistan, a wind farm in India). 30% of the projects we have financed have helped combat climate change. This is the case for the lines of credit we have allocated to Brazilian, Turkish and Indian banks to finance environmental projects, or again biomass projects in China, or bioethanol and cogeneration projects in Guatemala. Finally, this year we have given an even greater place to microfinance projects and social sectors (cancer clinic in Tunisia, university campus network in Brazil).

BEYOND VOLUMES, WHAT TYPE OF PROJECTS DID PROPARCO

FINANCE THIS YEAR?

DID THE CONJUNCTION OF PROPARCO’S STRONG GROWTH AND

THE ONSET OF A GLOBAL FINANCIAL CRISIS INCREASE YOUR RISKS?


LUC RIGOUZZOCHIEF EXECUTIVE OFFICER OF PROPARCO

INTERVIEW WITH

PROPARCO verifies that its operations are effective by systematically measuring the impact of its financing. For example, the projects fi-nanced or cofinanced in 2009 will provide 55 000 people with ac-cess to electricity, connect 6 million others to a telecoms network, support 110 000 businesses and create or secure 815 000 jobs. This financing will also help improve the quality of drinking water supply systems for 2 million people, produce 425 MW of energy and reduce greenhouse gas emissions by 2.2 million tons of CO2 eq every year. But our main impact this year has been our capacity to meet the needs of our clients during this period of crisis.

Our first meeting place is, of course, the Board of Directors where we take all the major decisions concerning our company. But we want this community of investors and entrepreneurs to actively exist and share a common commitment to support development. This is why we re-started our “Investors’ Club” in 2009 where PROPARCO’s shareholders, partners and main clients gathered to debate the topic of the crisis in Africa. The topic of the 2010 edition is carbon finance in Africa and the Mediterranean. PROPARCO also participates in leading the network of European Development Finance Institutions which I have the privilege of chairing in 2009 and 2010. We also enjoy close rela-tions with both the international and French financial community. This is, for example, the reason why we signed a framework agreement with the French agency for international business development, Ubifrance, in September which aims to promote relations between French companies and the countries where we are active.

The year was marked by four initiatives. The first was the launch of FISEA, the Investment and Support Fund for Businesses in Africa, one of the three cornerstones of the French Presidential Initiative for Growth and Employment in Africa. After eight months of activity, the fund has already financed thirteen projects for an amount totalling 62.3 million euros.PROPARCO and the World Bank Group’s International Finance Corporation signed an agreement to finance infrastructure. PROPARCO pledged to inject up to a billion euros in the cofinancing facility that has been set up to support infrastructure projects in developing countries.

WHAT ARE THE MAIN IMPACTS OF THESE PROJECTS?

WHAT WERE THE MAJOR INITIATIVES OF 2009?

PROPARCO’S GOVERNANCE IS ORIGINAL: IT IS BOTH PUBLIC

AND PRIVATE, FROM THE NORTH AND THE SOUTH.

HOW DO YOU LEAD THIS COMMUNITY?

FISEA : A NEW EQUITYFINANCING SOLUTIONIN SUB-SAHARAN AFRICAFISEA is an investment fund that takes equity participations in businesses, banks, microfinance institutions and investment funds operating in Sub-Saharan Africa.it is one of the key mechanisms of the Frenchinitiative for Growth and Employmentin Africa launched by the French Presidentin February 2008. FiSEA’s capital endowment was provided by AFD. Project appraisal and management have been entrusted to PROPARCO.FiSEA aims to be complementary to traditional private funds and focuses on investmentsthat carry a higher risk in unstable or post-crisis regions. it makes small investments in sectorsthat are traditionally neglected.The fund has a €50M annual investment target over a five-year period. in 2009,13 projects were approved totalling €62.3M.

> FIND OUT MORE AT www.pROpARcO.FR

In terms of innovative financing, AFD Group and Crédit Agricole Asset Management have launched a mutual fund, Amundi AFD avenirs du-rables. The aim is to involve savers from the North in financing for projects cofinanced by PROPARCO via a cautious and responsible in-vestment. Amundi will be becoming a new shareholder of PROPARCO in the coming months. Finally, 2009 saw the launch of “Private Sector & Development”, PROPARCO’s magazine. This magazine provides a space for debate and experience sharing on the private sector’s contribution to development policies. By gathering the opinions of entrepreneurs, financiers, researchers, donors or NGOs, our aim is to improve practices and gal-vanise investment in these countries. The latest April 2010 issue focuses on financial markets.

The first major challenge is to manage to integrate our new col-leagues and control our growth. In five years, we have almost tripled our staff to support this growth in activity. All the women and men that make up PROPARCO show a high level of professionalism, a commitment to the development of South countries and very rapidly share a common culture. This wealth also constitutes a challenge and the increase in human resources must go hand in hand with a strengthening of procedures in order to ensure our operations flow smoothly without any risk.

However, despite the 2008 capital increase and the strong growth in our activity for several years, PROPARCO remains a relatively small company in view of the challenges and investment needs of the countries where we operate. Following the extension of our business area, it is essential for us to continue to be selective and focus on our core mandates with Africa and the Mediterranean as priorities, and to be highly selective in terms of sectors in the other regions. Finally, in developing our partnerships, we will be giving priority to European financial institutions and our long-standing partners.

There are signs that 2010 will look nothing like 2009. The financial cri-sis is largely behind us and financial systems in many emerging coun-tries have found themselves in a situation of overliquidity (India, Brazil). We have observed a fall in the number of investment programmes in most companies due to the economic crisis. PROPARCO will conse-quently probably receive fewer requests than in 2009. We have also observed a fall in the activity of all development finance institutions in the first quarter of 2010.In this context, our shareholding platform, which is unique in the world of donors, will give us an edge and will allow us to pursue and strengthen our mission: to catalyse private investment in order to sup-port developing countries. I am sure that in 2010 as much as in 2009, PROPARCO’s teams will strive to demonstrate that long-term invest-ment in South countries both serves a purpose and is profitable.

PROPARCO HAS DEVELOPED ENORMOUSLY OVER THE PAST 4 YEARS:

STAFF, MANDATE, GROWTH, GEOGRAPHICAL AREA...

WHAT ARE THE CHALLENGES FOR YOU NOW?

WHAT ARE THE PROSPECTS FOR 2010?

Private Sector & Development is a bimonthly magazine published by PROPARCO. Every issue focuses on one topic and gathers the opinions of specialists that have different and complementary approaches. Five issues have already been published on a wide range of topics such as: “SME financing in Sub-Saharan Africa”, “How can the private sector help provide access to drinking water in developing countries?”, “What balance between financial sustainability and social issues in the microfinance sector?”, “What are the economic and social impacts of the mobile phone sector in developing countries?”, “Africa’s financial markets: a real development tool?”.

PR IVATE SEC TO R & D E VELO PMENT,PRO PARCO’ S MAG AZI NE

> TAKE OUT A FREE SUBScRIpTION AT www.pROpARcO.FR


The international crisis has led to a fall in banking activity and foreign direct investment flows in developing countries. PROPARCO’s mandate - to support and catalyse long-term investment in the South - has taken on its full meaningin this context.

PROPARCOA PATIENT AND RESPONSIBLEINVESTOR

PROPARCO promotes private investment in emerging and developing countries with the aim of supporting growth, sus-tainable development and the Millennium Development Goals.In 2009, PROPARCO extended its business area to all developing and emerging countries, i.e. over a hundred and fifty countries in Africa, Asia and Latin America. However, PROPARCO continues to tailor its approach to the areas in which it invests. In emer-ging countries, the company works to preserve global public goods and promote social and environmental responsibility. In developing countries, particularly Africa, it supports economic growth and employment. The projects supported are selected first and foremost for their developmental impacts and concern access to financing for businesses and banks, basic infrastructure construction and the fight against climate change. PROPARCO fulfils its mandate by providing innovative financial solutions tailored to its clients’ needs: loans in foreign or local currencies, direct equity investments, private equity invest-ment, guarantees and financial engineering. In addition to its financing , PROPARCO provides - and is developing - capacity building services for businesses. In 2009, and despite the crisis, PROPARCO continued to play its role as a patient and respon-sible investor. It has once again demonstrated by the impacts of its financing and its financial results that development and profitability go hand in hand.

> FIND OUT MORE AT www.pROpARcO.FR

OUR MANDATE: BOOSTINGPRIVATE INVESTMENT INSOUTH COUNTRIESThe private sector plays a key role in developing economies. It is the main engine of growth and job creation and generates resources that allow States to fulfil their role as regulators and wealth redistributors. It also helps provide certain essential services and plays a key role in meeting environmental and social challenges. PROPARCO consequently promotes private sector investment in emerging and developing countries with three main targets:

• to promote economic growth and job creation;

• to provide the poorest populations with basic services via the private sector (electricity, water, infrastructure, housing, health, education, microfinance);

• to disseminate high environmental and social standards, particularly for energy efficiency.

“Our role in the field is to implement PROPARCO’s financing activity. We identify investments that have high developmental impacts and are, at the same time, viable from a financial, social and environmental perspec-tive. This requires us to tailor our approach to the local situation. PROPARCO’s regional offices need to be strengthened in order to sup-port its growth. This will ensure the company maintains the quality of the projects it finances. It involves recruiting motivated teams with extensive experience in operational sectors and specific skills in finance and banking.Having investment officers in the field is a major advantage for PROPAR-CO: it allows us to build up close and long-term relations with our clients. What does my work at PROPARCO mean to me?I worked for six years in development, then in a commercial bank. I realised that one of the keys to the success of development initiatives is to give the private sector access to financing...”.

VIEWPOINT

what role does pROpARcO’s international network play vis-à-vis the paris headquarters?

B y FLO REN CE KI MATA ,I NVE S TMENT O FFICER AT PRO PARCO’ S N AI RO B I O FFICE


SAO PAULO

In 2009, PROPARCO extended its business area to all countries eligiblefor official development assistance as defined by the OECD. PROPARCO is now active in Africa, the Mediterranean, Asia, Eastern Europe and Latin America. Projects are supervised in the field either by regional officesor directly by headquarters. PROPARCO also benefits from the supportof AFD’s network of 40 agencies.

A GLOBAL NETWORK

TeamJulien Lefilleur - Clément Marchand

Melrose Office suitesPhoenix House Plot 26EAbdulrahman OkeneClose Off Ligali Ayorinde Street Victoria Island Lagos - NigeriaTel.: (234) 12705740

Royal Ngao House - Hospital RoadP.O Box 4599500100 Nairobi, KenyaTel.: (254) 20 271 12 34 (254) 20 271 10 58Fax: (254) 20 271 79 [email protected]

Central Africa and nigeria

East Africa

TeamCharles-André Le Pape - Ljeoma OgokeEric Sossou - Pauline Morin

TeamGhislain de Valon - Florence KimataSébastien Gregarek - Samy Ghannam

Ballywoods Office ParkIronwood House, 1st Floor29 Ballyclare Drive - Bryanston P.O. Box 786555 - Sandton 2146Johannesburg, South AfricaTel.: (27) 11 540 7100Fax: (27) 11 540 [email protected]

Boulevard François Mitterrand01 BP 1814Abidjan, Côte d’IvoireTel.: (225) 22 40 70 40Fax: (225) 22 44 21 [email protected]

Southern Africa and Madagascar

West Africa

TeamSophie Le Roy - Quinton Soper Emilie Menard - Kalinka HemrajGuillaume Rémy

15, avenue Mers-Sultan20130 Casablanca, MoroccoTel.: (212) 522 29 53 97Fax: (212) 522 29 53 [email protected]

Morocco, Mauritania, Algeria

TeamAmaury Mulliez - Mathieu Lebègue

Immeuble Miniar - Bloc B 3e et 4e étagesRue du Lac d'Ourmia1053 Les Berges du LacTunis, TunisiaTel.: (216) 71 861 799Fax: (216) 71 761 [email protected]

Tunisia

TeamEmmanuel Haye - Katia Mehanneche Nadia Ben Azouz

LAGOS

NAIROBI

JOHANNESBURG

TUNIS

PARIS

NEW DELHI

BANGKOK

BEIJING

ABIDJAN

CASABLANCA

CAIRO

10 Sri Lanka StreetZamalekCairo, EgyptTel.: (202) 27 35 17 88Fax: (202) 27 35 17 90

Middle East

TeamThomas Eloy - Sébastien Delannoy

1A Janpath New Delhi, 110 001 IndiaTel.: (91) 11 2379 3747 Fax: (91) 11 2379 [email protected]

151, rue Saint-Honoré75001 Paris, FranceTel.: (33) 1 53 44 31 08Fax: (33) 1 53 44 38 38

Southern Asia

Paris

PROPARCO’s offices

PROPARCO’s business area

TeamJean-Pierre Barral - Yatin KundraEmilie Pascal

Edificio Çiragan OfficeAlameda Ministro Rocha Azevedo 38 - 11 andar - cj.110401410-000 - São Paulo, SP - BrazilTel.: (55) 11 2532-4751 / 4752 / 4753 / 4750Fax: (55) 11 [email protected]

Brazil

TeamChristophe Blanchot - Rose CutenMarc Lebreton - Paula Lieff

7 Floor, Block C, East Lake Villas35 Dongzhimenwai AvenueDongcheng DistrictBeijing 100027, ChinaTel.: (8610) 84 51 12 00Fax: (8610) 84 51 13 [email protected]

China

TeamAriane Ducreux - Chen JingZhao Suying

Exchange Tower, Unit 3501-0235th floor388 Sukhumvit Road, KlongtoeyBangkok 10110, ThailandTel.: (66) 02 663 6090 [email protected]

Southeast Asia

TeamAntoine Vigier - Nancy ChoophungartGrégory Scopélitis - Charlène Menson

MEETINGTHE CHALLENGESOF EACH REGIONPROPARCO extended its business area in 2009and now tailors its interventions to four core challenges: growth in Africa; employment and regional integration in the Mediterranean; green and inclusive growth in Asia, Eastern Europe

and Latin America; regional integration in the French Overseas Territories.

ANNUAL REPORT PROPARCO 2009Metting the challenges of each region20

PROPARCO’s history has been marked by a continuous succession of geographic expansions. When it was foundedin 1977, the company mainly focused on French-speaking Sub-Saharan Africa. In the early 1990s, its activity was extendedto the Maghreb region, then English-speaking Africa, before slowly moving into Asia and a few Caribbean countries.

PROPARCO NOW ACTIVE ON FOUR CONTINENTS

German-based ProCredit Group has built up one of the leading microfinance networks. It gathers twenty-two subsidiaries located in emerging and developing countries, particularly Africa, Latin America and Eastern Europe. Its core mission is to provide a range of productive credit and other banking services to micro, small and medium-sized enterprises, as well as to private clients with low and modest incomes. ProCredit’s innovative approach

is shaped by its business model as a socially responsible local bank seeking to combine transparency, effectiveness and profitability. Following the extension of its business area, PROPARCO allocated two successive a10M financings to this key partner, the first in equity, the second in subordinated notes. This investment aims to promote access to credit and savings for those that are excluded from the classic banking system.

SUPPORTINGA MICROFINANCE NETWORK A LEADER ON THREE CONTINENTS

> FIND OUT MORE ABOUT THIS PROJECT AT www.PROPARCO.FR

Since 2004, PROPARCO’s geographic expansion towards major emerging countries (Brazil, China, etc.) has been gathering pace under a mandate to combat climate change. This gradual development of the company pursues two objectives: to give priority to Africa and build sectoral exper-tise in the other developing economies. The 2008 financial crisis sparked a downturn in commercial banking activities in South countries and once again under-scored the key and countercyclical role played by develop-ment agencies.The October 2008 G8 called for widespread intervention by bilateral agencies. PROPARCO’s Board of Directors sub-sequently took two major decisions (in December 2008 and March 2009): to raise restrictions on PROPARCO’s mandate in emerging countries and to extend its business area to all developing countries as defined by the Organisation for Economic Co-operation and Development (OECD). This decision imme-diately opened up an extremely vast area for PROPARCO which includes, for example, Latin America and Central Asia.

This major expansion led PROPARCO to overhaul its strategy. The company continues to have an open and multi-sectoral mandate to support growth in its traditional geographical areas in which it has acquired unique expertise: this con-cerns Africa, the Caribbean, the Mediterranean and the Indochinese peninsula (Vietnam, Lao PDR, Cambodia).Its business in the other geographical areas (Asia, Latin America, Eastern Europe and the Balkans) will focus on selected core sectors which are in line with the areas of activity of French and AFD official development assistance: climate change, agribusiness, health, education and microfi-nance. PROPARCO’s aim is to focus on a strategy based on expertise and build comprehensive skills in all these sectors. It will be providing support via both direct investments and via banks or investment funds.

Rice manufactuRingand pRocessing plant

cambodia

Sugar is one of Guatemala’s main export products and the sugar industry is vital for the country’s economy. It also contributes to electricity generation: when sugar cane is harvested it is processed and used to produce renewable energy via cogeneration and consequently helps meet the country’s electricity needs. Pantaleon Sugar, the largest sugar producer in Central America, is an agribusiness group specialised in processing sugar cane to produce sugar, ethanol and electricity. PROPARCO

has joined other development institutions and invested $14M in the company to support its development (raise sugar and ethanol production in Guatemala, build a distillery in Nicaragua and increase cogeneration capacities in Guatemala). By financing Pantaleon, PROPARCO is supporting one of Guatemala’s key players in terms of employment and public revenue. The project will also reduce CO2 emissions by an estimated 372 000 teq per year.


DEVELOPING ELECTRICITYGENERATION FROM SUGAR CANE IN GUATEMALA

In 2009, PROPARCO extendedits activities to all developingcountries.


Africa’s air space is made up of small-scale carriers that are often in deficit and unreliable, yet the industry carries huge potential with growth rates above the global average.The Aga Khan Fund for Economic Development – a long-standing partner for PROPARCO – is implementing a project to create a pan-African aviation hub comprising three companies (Air Mali, Air Burkina, Air Uganda) within a regional agency called Celestair.

PROPARCO is supporting the project by providing $19.5M of long-term financing for the acquisition of nine aircraft. Celestair encourages airline companies to modernise and is helping to bring the sector up to the highest international standards for safety, quality and services. Developing high-quality airline infrastructure directly contributes to economic and social growth in Africa.


HELPING A PANAFRICAN AIRLINE GROUP TAKE TO THE SKIES

In 2009, 40% of proparco’scommitments were in Africa.

Africa - boosted by its demography and urbanisation - has been experiencing strong growth for several years.The crisis has not had any deep effect on this.

Although the crisis did not have any direct impact on Africa’s financial systems, 2009 was marked by a credit squeeze and a slowdown in activity in several countries. The weakness of Africa’s physical and financial infrastructure remains the main stumbling block to strong and sustainable growth on the continent.It is more than ever before a priority for PROPARCO to sup-port growth in Africa. The company focuses its activities on the main engines of sustainable growth:

• developing reliable and accessible infrastructure;

• supporting local entrepreneurs ;

• supporting bank and financial intermediation via banks and private equity investment ;

• promoting social and environmental standards in the framework of sustainable growth.

In 2009, PROPARCO’s commitments in Sub-Saharan Africa reached a415M and accounted for 37% of its total activity, i.e. a 48% rise compared to 2008. PROPARCO is the most Africa-oriented development finance institution in Europe.

PROPARCO’s financing mainly focused on supporting finan-cial intermediation (investment funds, stock markets and banks) and infrastructure projects. For example, PROPARCO invested a100M in Africa in the framework of the post-crisis initiative for infrastructure which aims to bridge the financing gap for private mega projects. Finally, PROPARCO set up the Investment and Support Fund for Businesses in Africa (FISEA), one of the main mechanisms of the French Initiative for Growth and Employment in Africa (launched in February 2008). FISEA makes equity investments in businesses, banks and investment funds. It has approved thirteen projects and invested a62.3M in its first eight months of activity.

AFRICA: OuR PRIORITY

today, 60% of afRicans aRe undeR 24 yeaRs old - uganda

A key criterion - and a security - for an investor is to be able to assess the risk of an investment. Africa’s financial markets are not very well-known and not very developed. This type of information is consequently essential, yetthe continent is neglected byrating agencies.

Global Credit Rating - a subsidiary of the agency Duff & Phelps - initially conquered the South African market, then extended its activities to Zambia, Zimbabwe, Nigeria and Kenya. It now publishes 60% of rating reports in Africa. Global Credit Rating now aims to develop its activity in West Africa and open

an agency in Dakar. PROPARCO has taken a 10% stake in the agency’s capital in order to support its growth and give it greater credibility on this new market. PROPARCO is consequently helping both to improve the level of financial information in Africa and the way financial markets operate


ENHANCING FINANCIAL INFORMATION IN AFRICA


GROWTH AND EMPLOYMENT IN THE MEDITERRANEANThe Mediterranean is one of PROPARCO’s top priorities and it is continuing to developits business in the region. To do so, it relies on a network of local financial partners and a newlyexpanded presence in the field with the opening of an office in Cairo.

The Mediterranean region has to face the dual challenge of regional integration with its northern bank and needs for employment brought about by its young and swiftly growing population. The Union for the Mediterranean – an initiative launched by France – aims to provide a solution to these two challenges via major projects shared by both shores of the Mediterranean. PROPARCO is traditionally the most active bilateral develop-ment finance institution in the region. It has focused its financing on two priority areas (Turkey and the Maghreb region) and a core business: private equity investment.

In 2009, PROPARCO began to focus on its development in the Middle East (Egypt, Syria, Lebanon, Palestinian Autonomous Territories, Jordan...) via its traditional business in the region: private equity investment, the banking sector and mega industrial or infrastructure projects. For example, PROPARCO financed a major water supply project in the city of Amman in Jordan, the construction of a clinic in Tunisia and renewable energy projects in Turkey (wind, solar panels). In terms of private equity investment, the company shored up the capital of two of Lebanon’s largest banks, invested in the new fund of a team based in Beirut and, at the same time, continued to support its long-standing partners in Morocco. This year also saw the launch of Averroès Finance II, which is co-managed by PROPARCO and CDC Entreprises and follows on from the first fund of funds Averroès Finance. Averroès provides a basis for partnerships between players from the northern and southern Mediterranean and allows them to support private equity investment in the region.

Algeria counts over three hundred thousand SMEs which are poorly served by the classic banking system.The lack of suitable financial solutions has led to a marked development of leasing which has the advantage of providing a simpler and faster solution than bank loans. PROPARCO has supported this sector by participating in the capital increase of Maghreb Leasing Algérie, the country’s largest

leasing company. This participation is equivalent to a2M and will allow the company to both develop its financing activities and comply with the regulation which has raised the minimum capital requirement for financial establishments. The project will help create employment, support growth in the region and make Algeria’s banking sector more competitive.

TAILORING FINANCIAL PRODUCTS TO SMEsIN ALGERIA


PROPARCO is supporting 9 investment fundmanagement teams in the Mediterranean.


FINANCING WATER SUPPLY IN THE CITY OF AMMAN IN JORDAN

Jordan is one of the ten cities in the world to be the most affected by a water shortage.Cities are the first victims, particularly Amman whose inhabitants only have access to water twice a week. The best medium-term alternative for raising the amount of available water in the capital is to use water from the Disi aquifer in southern Jordan. PROPARCO and AFD have bridged the financing deficit of commercial banks caused by the global financial crisis to allow this water supply project to come into being.

PROPARCO and AFD consequently allocated two $100M loans for a project to convey water from Disi to Amman (320km away) thanks to the construction and operation of a drinking water supply system.100 million m3 of water reserves will be withdrawn from the Disi fossil aquifer over the next 50 years. Amman’s 2.5 million inhabitants will consequently have access to water. Some water resources which are currently overexploited will be preserved.


GREEN AND INCLUSIVE GROWTH IN ASIA, EASTERN EuROPEAND LATIN AMERICAPROPARCO promotes growth that meets both the climate challenge and reduces inequalitiesin all the other developing and emerging countries: Asia, Eastern Europe and Latin America.

In 2009, PROPARCO extended its business area to all developing and emerging countries. PROPARCO’s mandate in these geo-graphical areas - outside Africa, the Mediterranean, Caribbean and Indochinese peninsula - is in line with AFD’s mandate and France’s official development assistance policy. It involves suppor-ting the private sector and promoting green and inclusive growth. PROPARCO’s financing in these regions aims to combine the two prerequisites for building a model of sustainable development: environmental balance and reducing inequalities.

In order to contribute to this global and long-term target, PROPARCO has chosen to focus its business on four specific sectors:

• the fight against climate change;

• the agribusiness industry, particularly on the topic of food security;

• social sectors, health and higher education;

• microfinance.These sectors already account for almost half of PROPARCO’s activity in its traditional geographical areas. In the climate sector, this year PROPARCO financed hydropower projects in Lao PDR and Pakistan and biogas projects in China. It also overhauled its climate strategy for Brazilian, Turkish and Indian banks. In the agribusiness sector, PROPARCO mainly supported industries that contribute to food security and the fight against climate change (eco-certified wood industry in Amazonia, sugar and bioethanol production in Guatemala). Several microfinance institutions were supported this year, particularly in Cambodia and Eastern Europe.Finally, in the social sectors, PROPARCO’s financing supported the construction of a hospital and a university campus network in Brazil.

PROMOTING HYDROPOWER DEVELOPMENT IN PAKISTAN

Pakistan faces a growing electricity deficit, yet the country enjoys an unexploited hydropower potential capable of stabilizing the energy supply which is currently 70% thermal. Laraib Energy is developing Pakistan’s first private hydropower project. The New Bong Escape power plant is located 120 kmfrom Islamabad. It has a capacity of

84 MW and will generate 540 GWh a year. This project is highly respectful of the environment: with no new dam, it will use water from the reservoir of an existing dam and will avoid 219 000 tonnes of CO2 equivalent emissions every year.Thanks to its long-term investment policy, PROPARCO was able to invest in this project which had

been jeopardised by the crisis Pakistan’s electricity sector went through in early 2009. It has allocated a $26M loan which completed financing from the International Finance Corporation, the Asian Development Bank, the Islamic Development Bank and Pakistani banks.


AFD Group has a specific mission to help strengthen the econo-mies of the French Overseas Territories. This support is pro-vided via operations to assist local authorities and banks or via guarantee fund management. PROPARCO finances business start-ups or development - either directly for private operators or

via bank intermediation - and helps build their competitiveness at the regional level. PROPARCO’s range of products is com-plementary to local banking products. In 2009, the company continued to support banking sectors in New Caledonia and French Polynesia.

REGIONAL INTEGRATION INTHE FRENCH OVERSEAS TERRITORIES

From 2010, PROPARCO’s activities will be based on three cornerstones:

• The regional integration of private players;

• Support for local banks via long-term refinancing or risk sharing;

• Support for innovative and structuring projects in the infrastructure sector (renewable energies, mega projects) or service sector.


With 90% of cultivated land used for rice growing, Cambodia is one of the world’s largest rice producers.Although the country exports its domestic consumption surplus, it only gains a very low added value because the bulk of Cambodian paddy rice is processed and exported in neighbouring countries. At the same time, there has been heavy pressure on rice prices since 2008 which has led to serious difficulties for importing

countries to be supplied. This was the case for Reunion Island – where rice is a staple food – which experienced a serious food crisis in 2008. Soresum, a major player in Reunion Island’s mass marketing industry, wanted to invest in the Cambodian Golden Rice company in order to secure its supplies.The project, which is supported by $7M of PROPARCO financing, involves building and operating a new

production and processing unit with a capacity to treat 50 000 tonnes of paddy rice a year. The project consequently has a dual impact: it is helping to create an organised industry in Cambodia and is developing the local production of thousands of farmers and traders. It is also securing Reunion Island’s rice supply and preserving jobs in the industry.

DEVELOPING RICE PRODUCTION: REUNION ISLAND AND CAMBODIA REAP THE BENEFITS

28 ANNUAL REPORT PROPARcO 2009Four priority sectors

29ANNUAL REPORT PROPARcO 2009Four priority sectors

FOUR PRIORITY SECTORSPROPARCO focuses its activities on four priority sectorsthat contribute to growth and development. It financesbasic infrastructure, supports business development,promotes widespread access to credit and helps combatclimate change.


SUPPORTING BUSINESSESIt is difficult to obtain long-term financial resources on developing markets, both in termsof financial instruments and in terms of maturities or foreign currencies. Unfortunately, this situationhas worsened with the current financial crisis.

In order to make up for this lack of long-term finan-cial resources and promote growth in South countries, PROPARCO supports business development by directly allo-cating long-term resources.

PROPARCO SUPPORTS ALL TYPES OF ENTREPRENEUR:

• major industrial groups seeking to set up in business or develop in difficult areas;

• major regional groups seeking to improve their governance and develop their activity ;

• medium and large local enterprises that contribute to trans-ferring skills or technologies, creating jobs and complying with environmental and social standards.

The manufacturing, tourism and construction materials sectors have suffered badly from the global financial crisis. PROPARCO has fully played its countercyclical role by supporting these productive sectors and responding to a large number of financing requests. In 2009, the corporate finance activity reached €154M, including 42% in the Mediterranean. 2009 was also marked by a diversification in the business sectors financed. The construction materials and social sectors have

consequently now become new vehicles for creating growth.The agribusiness industry remains a core sector. The projects financed aim to maintain production potential and promote the development of market-oriented agricultural production, profitable farms, production diversification towards biofuels or the development of cogeneration. For example, in 2009 PROPARCO financed the development of a highly diversified sugar group (sugar, electricity produced from bagasse, etha-nol produced from molasses) established in both Guatemala and Nicaragua.Moreover, the financing for social sectors (health and higher education) aims to support national public policies which, as they are only partially financed, rely on the private sector as an intermediary. For example, PROPARCO has financed an origi-nal project to combat cross-border animal diseases in China.

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“Promoters that want to set up and manage an SME and make it viable must have ambi-tion, a sound project, a clear strategy, sufficient resources (with a sizeable amount in equity) to meet financial needs and real management skills. It is therefore a risky business that few investors or bankers accept to finance. The solution to the problem of SME financing con-sequently lies first and foremost in generally upgrading SMEs. Technical assistance allows SMEs to upgrade in order to have access to bank loans and private equity investments by professional investors. It is mainly provided to set up management accounting , executive recruitments, sales force organization and, more generally, strategy.”

VIEWPOINT

How can African SMEs gain easier access to credit?

B y PaTr I c E H O PPEN OT, Chair man and co -founderof Inves t isseur et Par tenaire pour le développement

Extract from the article “Private equity investment in Sub-Saharan African SMEs” in the magazinePrivate Sector & Development, September 2009.

Reliable and accessible infrastructure is indeed essen-tial for growth and the fight against poverty. One of PROPARCO’s core missions is to upgrade the quality of infrastructure and make it widely accessible. The company focuses its efforts on Sub-Saharan Africa and has also de-veloped expertise in renewable energy projects, particu-larly in the major emerging countries.

PROPARCO FINANCES INFRASTRUCTURE PROJECTS IN THE

SECTORS OF :

• transport, in order to improve living conditions for urban dwellers and give businesses easier access to global markets;

• telecoms, in order to fight against the digital divide;

• energy, in order to make modern and clean energy available. During the 2009 financial crisis, PROPARCO received an enormous amount of financing requests due to the squeeze on banking sector resources and the subsequent need to complete finance plans for mega projects. Its business con-sequently more than doubled with commitments in this sector rising from €150M in 2008 to some €400M in 2009, including a €100M participation in the crisis-response initia-tive for infrastructure launched by the International Finance Corporation (World Bank Group). For example, PROPARCO

participated in projects such as the Enfidha airport in Tunisia, water conveyance to Amman in Jordan, the Ho Chi Minh City container terminal, the Djibouti port extension, as well as projects for power plants in Jordan, Pakistan and Lao PDR.

FINANCING INFRASTRUCTUREIneffective infrastructure is often seen as a stumbling block to the development of South countries.

Vietnam has seen sharp growth in its maritime trade in recent years However, its port infrastructure is now reaching saturation point, particularly in the region ofHo Chi Minh City. Port infrastructure is therefore one of the priorities of the modernisation plan launched by the local authorities which provides for the construction of six new container terminals. One terminal is being built 85 km from Ho Chi Minh City in Cai Mep by the company SSIT. It will be equipped with a large mooring

capacity, will be able to receive high-capacity ships (equivalent to a twenty-foot draught) and will raise the available transit capacity in the city. It will consequently become one of the country’s main commercial gateways.PROPARCO’s $15M participation in the project is part of a multi-donor financing scheme gathering the International Finance Corporation, FMO, KfW and the Infrastructure Crisis Facility. Commissioning is scheduled for early 2011.

UPGRADING PORT INFRASTRUCTURE IN HO cHI MINH cITY

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SUPPORTING YOUNG PROFESSIONALS TRAININGIN BrAZIL

Only 20% of the 26 million 18-24 year olds in Brazil are enrolled in a higher education establishment, yet they can substantially improve their future income by getting a qualification. The Brazilian government is aware of the need to invest in this sector and has promoted private sector intervention as an effective complement to public services.

Anhanguera Educacional Participações (AESA) is the largest private listed higher education company in Brazil. AESA is a leader in the vocational training and higher education sectors and provides high-quality training for low-income students at an affordable cost. Today, it counts 250 000 students in its network of 54 university campuses and 450 training centres.

It receives 500 000 others inits 650 training centres.PROPARCO decided to earmark its first financing in Brazil’s education sector to support AESA’s growth strategy (new campuses and training centres) by allocating it a $12M senior loan alongside IFC and its German counterpart, DEG.

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In the specific context of the financial crisis, PROPARCO played a strong countercyclical role by scaling up its lending activity for banks in emerging and developing countries and its investment activity in partner institutions.In 2009, PROPARCO’s activity with financial institutions reached some €445M of commitments in the form of loans and equity investments. The figure is up 10% compared with 2008 and underscores PROPARCO’s aim and capacity to pledge considerable amounts in a poor economic situation, while some other partner institutions sought to limit their portfolio expansion. This year was marked by a diversification of our activity, both in terms of products and geographical areas. Some €110M were allocated in the renewable energies sector which rep-resents a 12% rise compared to 2008.

Moreover, 2009 was a record year in terms of equity invest-ments in credit establishments: over €45M were invested in capital in order to shore up the solvency of PROPARCO’s client financial institutions. The geographical breakdown of commitments highlights the scale of needs in Latin America (26%) and Asia (19%) and, at the same time, confirms that Africa is a priority for PROPARCO (31%).In 2009, PROPARCO relaunched its activity in the Dominican Republic (for an amount totalling $50M for local banks) which again underscores its aim to support the sector in a particularly unfavourable environment. Similarly, PROPARCO allocated a post-conflict line of credit in Sri Lanka in order to boost lending activities in the northeast of the country. It also subscribed to €10M of subordinated notes in a micro-finance holding company of which it became a shareholder at the end of 2009.PROPARCO’s ambitions in terms of its financial clients are more than ever a core topic. The aim is to shore up its presence in Africa, continue its multi-product approach with a focus on equity investments and strengthen its capacity in terms of microfinance operations. PROPARCO is consequently seeking to support the banking and financial sector in the countries where it operates and strengthen the additional role that it is in a position to play.

2009 was marked by a liquidity crisis in developed countries. With resources drying up, banks in developing countries had to resort to alternative sources of financing or scale down their activity.

PROMOTING ACCESS TO CREDIT

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VIEWPOINT

Why are banks reluctant to lend to SMEs?

B y Paul D ErrEumaux , Chair man and Chief Executi ve O ff icer of Bank of Afr ic a Group

“Relations between banks and SMEs have always been very similar to those between an old couple who constantly blame each other yet have to live together... Banks, for their part, have at least three significant shortcomings. The first is their weakness in supervising their portfolios. In view of the understandably fragile nature of SMEs in terms of organization and forward-looking vision, bankers should closely follow firms’ day-to-day running , the relevance of their investments and the difficulties they meet. The second shortcoming stems from the fact

that banking teams lack a specific reference framework based on in-depth experience of SME financing. Finally, the third shortcoming for banks is related to the institutional environment where deficiencies penalize banking activities. These difficulties reduce interest in SME financing further still and, at the same time, lead banks to impose stiffer conditions for their financing.”

Extract from the article “The difficulties banks face in financing SMEs in Sub-Saharan Africa: who is to blame?" in the magazine Private Sector & Development, May 2009.

PROPARCO financing in 2009 will helpsecure or create 815 000 jobs.

In 2009, PROPARCO earmarked €275M for climate change mitigation projects, i.e. roughly a quarter of its commit-ments for the year. Thanks to this financing, roughly 2.2 million

tons of CO2 eq emissions will be avoided every year. PROPARCO

enjoys technical expertise and references in each of the renewable

energies that are commercially exploited today. For example, in

2009 PROPARCO financed wind farms, hydropower plants, a

biogas project using waste from ethanol production, a sustainable

forest plantation, a manufacturer of flat glass for the photovoltaic

industry, a bagasse cogeneration unit and a sugar cane-based

biothenal production unit.

PROPARCO makes every effort to ensure that these skills are

transferred to partner banks in the South. For example, in 2009

a standard product of special climate lines of credit was developed

and allocated to five banks in Turkey, India and Brazil. The specific

aim of these lines of credit is for banks to take ownership of

the bilan carbone (carbon balance) tool developed by AFD

which measures all the emissions that result from the projects

financed. This tool is now applied to all projects directly financed

by PROPARCO and assesses the impacts that the operations

supported have on the climate.

PROPARCO has consequently shored up its position as a leader

among Europe’s development finance institutions in terms of

the fight against climate change. It has made it one of its prior-

ity sectors, particularly in the countries where it has recently

begun to operate.

COMBATINGCLIMATE CHANGEPROPARCO has been dedicating a large part of its activities to combating climate change for several years now.

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Brazil is home to 60% of the Amazonian Rainforest and has been suffering from serious deforestation for several decades. 17.5% of its initial forest surface area has now disappeared. Cikel Brasil Verde Madeiras is one of the main integrated forest groups in Brazil. In addition to exploiting three native Amazonian forests covering an area of 400 500 ha, Cikel stands out because it produces FSC eco-certified wood and as such is one of

the few players in Brazil to exploit forests in a sustainable manner. PROPARCO has decided to encourage Cikel’s model approach by financing its forest and industrial investment program for the next two years via a $20M senior loan.The project will reduce emissions by 550 000 M tons of CO2 eq every year and will support an industry that creates jobs and added value while at the same time maintaining forest cover.

“The failure of the Copenhagen Summit means it is very unlikely that the Kyoto Protocol will continue in its present form beyond 2012. This does not, however, mean the end for carbon finance which should continue in a fragmented form within regional markets (based on the model of the EU Emissions Trading System). This type of market is be-ing studied by the United States, Japan, Korea, Australia, New Zea-land and China. These regional systems are all partly linked up and should recognise offset credit in developing countries in a form simi-lar to the carbon credits that are currently generated by the Clean Development Mechanism (under the Kyoto Protocol). Forest preser-vation will also be promoted with the creation of forest credits.”

VIEWPOINT

What is the future of carbon finance?

B y Paul D E la G uér IVIèrE , c l imate e xper t at PRO PARCO

PROMOTING SUSTAINABLE FOREST EXPLOITATION IN AMAZONIA

PROPARCO’s financing in 2009will help reduce CO2 emissionsby 2,2 M teq every year.

34 ANNUAL REPORT PROPARCO 2009Matching investors'financial needs

35ANNUAL REPORT PROPARCO 2009Matching investors'financial needs

MatchingINVESTORS’FINANCIAL NEEDSPROPARCO provides a full range of financial productstailored to the specific needs of investors in South countries:access to long-term financing, products to hedge or reducecertain risks, products tailored to specific challenges face by developing countries.

36 ANNUAL REPORT PROPARCO 2009Matching investors'financial needs

SUPPORTING THE AGRIBUSINESS INDUSTRY IN EGYPT

Wadi Holdings, an Egyptian company, is one of the biggest producers of chicks and poultry feed in Egypt and Sudan. It has also diversified its activity towards major export products, such as olives and glass. The company stands out for the way in which it pays particular attention

to sanitary issues. This allowed it to successfully resist the impacts of avian flu in 2006. Wadi aims to pursue its strong growth and will need to make sizeable investments in the future. PROPARCO has taken a $3M equity stake in the company’s capital in order to support its development. By making

this investment, PROPARCO has decided to support a player that has model practices in terms of health standards. It is consequently helping to secure the agribusiness industry in Egypt on which 600 000 farmers rely. The project will also have an impact by supporting export activities and growth.


In 2009, PROPARCO made twenty-one equity investments for an amount totalling €74M. It notably became a major shareholder of a major operator in the microfinance sector in Eastern Europe. The other direct investments were made in Africa.Direct investments particularly helped support the banking sector which accounts for 74% of amounts invested this year. By providing equity products, PROPARCO promotes con-solidation in the financial sector, the emergence of regional players and helps improve procedures. PROPARCO conse-quently provides a response to the constraints currently met by African banks by offering them the resources they require for their positioning or expansion abroad. In addition to its participation in other funds, the Investment and Support Fund for Businesses in Africa (FISEA) held by AFD and managed by PROPARCO makes direct investments. In 2009, these investments supported more innovative projects in Africa in the sectors of microfinance, innovative financial services and agribusiness.

investing IN EQUITY Banks and businesses – faced with the problem of resources drying up – are seeking alternative financing. PROPARCO provides solutions by making equity or quasi-equity investments in the capital of businesses.

PROPARCO’s financing in 2009will help support the growthof 110 000 businesses.

> FIND OUT MORE ABOUT THE FANISI PROJECT AT www.PROPARCO.FR

“SMEs have limited access to the financing they need. This is the main stumbling block to the development of the sector in East Africa. Unlike micro-enterprises which have a successful finance model [via microfinance] and major corporates whose results attract and secure new equity investments, SMEs very often have to resort to investors or finan-cial institutions that are not specialists in this sector. SME managers also lack knowledge of the business world and financial markets. Fanisi Capital combines an SME financing activity with a capa-city building activity for managers. The aim is to turn East African SMEs into competitive players in the region. In May 2009, Fanisi made its first equity investment in a Kenyan software company for an amount of $2.5M. Fanisi’s investment will support the company’s development and will also help it build its capacity to address in-house challenges, such as the need to strengthen its management”. In 2009, FISEA participated in Fanisi’s first closing for an amount totalling $10M, alongside its Norwegian and Finnish counterparts.

VIEWPOINT

what approach does the Fanisi Fundtake to private equity investment?

B y Ay I sI MAkATIAN I , Fanis i venture c apit al f und manager

PROPARCO is a forerunner in private equity investment in some regions. It provides long-term supportto independent local fund management teams which galvanise private and public investment.

sUPPORting PRIVATE EQUITY INVESTMENT

Kenya

PROPARCO - via its private equity investment activity - can scale up the impact of its action to boost employ-ment and wealth creation in the economies it supports. The funds in which PROPARCO has invested have them-selves invested some €1.2bn in 247 businesses.The year was marked by the launch of two funds to sup-port Africa and the Mediterranean. FISEA was launched on 20 April 2009 and is one of the main mechanisms of the French Initiative for Growth and Employment in Africa. The annual target of €50M has already been surpassed with thirteen investments approved this year for an amount totalling €62M. Averroès Finance II, which follows on from Averroès Finance, aims to support private equity invest-ment and attract private funds in the Mediterranean region.€100M have been invested in funds, including 75% inSub-Saharan Africa. These investments have supported sectors that are essential for Africa’s development: support for small and medium-sized enterprises, agribusiness, basic infrastructure and innovative financial services.In the other regions, the funds supported are active in com-bating climate change and help improve the governance standards of the businesses they invest in.

PROPARCO’s products are complementary to those of local or international private banks. Indeed, the mission of development institutions, including PROPARCO, is to be niche players by providing financial products that are often neglected by the private sector. Their activities can conse-quently vary enormously from one market to another. In addition to cofinancing or joint risk-sharing mechanisms with other European development agencies, since 2007 PROPARCO has benefitted from a sub-participation agree-ment with AFD which allows it to increase its lending capacity. PROPARCO can consequently provide loans ranging

between €5M and €100M (the average amount is €13M), with maturities of between five and twenty years. In order to support a client over such a long period, PROPARCO needs to be able to adjust its lending operations which conse-quently include mechanisms to reduce or extend maturities depending on exogenous parameters (commodity prices, rainfall, etc.). This need for flexible tools has led PROPARCO to develop a wide range of loan products which now include senior loans, subordinated or participation loans and an increasing number of junior products.

MeDiUM anD LOng-teRM LENDINGPROPARCO’s lending activity - like its equity activity - is based on long-term investment.The company supports responsible investors over the long term by tailoring productsand repayment conditions to the constraints of its clients and the depth of the relevant market.

PROMOTING FINANCING FORMODEL ENVIRONMENTAL PROJECTS IN BRAZIL

>FIND OUT MORE ABOUTTHIS PROJECT AT www.PROPARCO.FR

Banco Fibra is a young Brazilian bank whose core activity is to finance SMEs. It now has some 1 100 clients. PROPARCO has supported this young and budding bank by allocating it a $30M senior loan, including $10M of AFD sub-participation. This line of credit is earmarked to finance investments in model environmental projects: clean energy, green transport (ethanol), reducing greenhouse gas emissions and protecting the Amazon Rainforest. This is the first line of credit that PROPARCO has directly allocated in Brazil. It will also allowthe bank to calculate the carbon balance of its investments.

39ANNUAL REPORT PROPARCO 2009Matching investors'financial needs

DeveLOPing PRODUcts IN LOCAL CURRENCY

Local financial markets in many countries are not deve-loped enough to be in a position to offer loan maturities that are long enough for the planned investments.PROPARCO - in partnership with other funders - is con-sequently working to develop local currency markets. PROPARCO was a forerunner in providing products denomi-nated in local currency by developing guarantee tools in Africa’s Franc Zone almost twenty years ago and, subse-quently, in all the countries where it is active. For example, it was the first to guarantee bond issues denominated in local currency in Africa.

Beyond its guarantee operations, PROPARCO set up a mechanism two years ago which allows it to develop direct loan products in local currency. Since 2007, PROPARCO has been a shareholder of TCX - a multi-donor initiative that allows its members to offer swaps in exotic currencies. Moreover, AFD issues bonds in a variety of currencies and directly intervenes on markets.PROPARCO consequently has resources available in CFA francs and South African rand. Finally, PROPARCO directly seeks resources in local currency from commercial or development banks which in 2009 allowed it to offer its clients CFA francs, South African rand, Indian rupees and Tunisian dinars.

A great many projects require financing in local currency. Without such financing , clients have to facea foreign exchange risk that markets lacking sophistication sometimes simply cannot manage.The loan maturities on offer are also not long enough for the planned investments.


Senegal has the second largest banking system in West Africa after Côte d’Ivoire. It is also highly competitive- over fifteen banks share 550 000 accounts - yet the rate of access to banking services remains low (under 10%). The Banque Internationale pour le Commerce et l’Industrie au Sénégal (BICIS),the country’s third largest bank with 17% of the market, is BNP Paribas’ subsidiary in Senegal.The bank is specialised in the private customer, institutional and corporate segments and seeks

long-term resources in order to shore up its balance sheet and back the maturity of its resources to that of its loans. In 2009, PROPARCO granted BICIS an FCFA6.7bn line of credit with a seven year maturity.By providing long-term financing in local currency, PROPARCO has helped the bank avoid a foreign exchange risk and is giving Senegalese businesses the resources they need to invest in their growth. It is consequently helping to develop the private sector and employment in the country.

LONG-TERM FINANCING FORA SENEGALESE BANK IN LOCAL CURRENCY

PROPARCO offers loans ranging from €5M to €100M.

SELECTING PROJECTS FORTHEIR IMPACTSPROPARCO’s day-to-day business combinesthree skill areas which together shape its activity.The first involves measuring and managingthe developmental impact of the projects it finances.The second resides in its constant commitment to socialand environmental responsibility.Since PROPARCO is a bank, the third aimsto manage risks on its operations.

The very first criterion in project selection is the contribution it will make to development.The second is financial profitability which will guarantee the sustainability of any project.

ENHANCING IMPACT MEASUREMENT

PROPARCO’s first impact measurement tool supports the financing decision prior to the investment. It is used by most European development finance institutions which makes it possible to harmonise results measurement and implement benchmarking procedures.The indicators that assess the contribution a private project makes to development include current public revenue, net currency effects, the number of jobs created, technology and know-how transfer, social effects (health, education, continu-ous training), compliance with environmental standards, positive environmental impacts in terms of reducing greenhouse gases, energy saving and the use of renewable energies.Agence française de développement Group has extended the use of this decision-making tool to its financing for projects under the Investment and Support Fund for Businesses in Africa (FISEA) hosted by AFD and managed by PROPARCO. Moreover, in order to have a more comprehensive understan-ding of the impact of all its operations, PROPARCO creates and publishes a series of sectoral indicators in common with AFD.

This process is in line with PROPARCO’s commitment to be accountable for its contribution to the overall efforts made under France’s official development assistance policy and allows it to measure the effectiveness of its projects.Finally, capitalisation studies are conducted on certain projects financed by PROPARCO or certain sectors of activity. They mainly take two forms: the first involves long-term evaluation studies conducted in the field several years after the implementation and development of the project. These studies make it possible to capitalise on experience and the operations that have been implemented with the aim of improving practices. The second is the very reason for the existence of the magazine published by PROPARCO - Private Sector & Development – which it launched in 2009. This magazine gathers and compares the opinions of specialists, experts and practitioners with one topic per issue. It is a plat-form for exchanges and reflection where ideas can be com-pared and headway can be made on these topics.

PROPARCO’s FINANCING AND COFINANCING IN 2009 WILL CONTRIBUTE TO:

Connecting 55 000 peopleto an electricity supply network

Connecting 6 million people to a telecoms network

Supporting the CSR processes of 4 000 businesses

Securing or creating 815 000 jobs


Reducing annual greenhouse gas emissions by 2.2 million tons of CO2 eq

43ANNUAL REPORT PROPARCO 2009Selecting projects for their impacts

PROPARCO chose to evaluate the developmental effects of the boom in the mobile phone sectorin Haiti - one of the most vulnerable countries on the planet - well before it was struck by the earthquakein January 2010. The lessons learned from this study are a sign of encouragement and hope that must be promoted.

The mobile phone industry has seen rapid expansion in develo-ping countries over the past decade. Although private inves-tors have often been behind its development, donors have also contributed. For example, in 2006 - a time when the subscriber

rate was very low in Haiti - PROPARCO supported the launch of a third operator on the island, Digicel Haiti. PROPARCO and AFD commissioned an economic and social assessment of the project from BearingPoint and the Fafo Institute.

THE IMPACTS OF MOBILE TELEPHONY:LESSONS LEARNED IN HAITI

Digicel’s arrival in Haiti had extremely considerable macroeconomic impacts that are worth mentioning: 53% of Digicel’s investments since 2006 have goneto the local economy (civil engineering, real estate, communication, etc.), i.e. roughly $140M. There have also been sizeable impacts on employment:in addition to the group’s 1 000 employees, the company indirectly provides an additional income of $24 per month to roughly 60 000 street vendors.Finally, Digicel has become the biggest taxpayer in Haiti (15%) and directly or indirectly made a 20% contributionto GDP growth between 2005 and 2007.

The social impact on usersis more difficult to measure:The poorest populations continue to be excludedfrom mobile phone services, particularly in rural areas.Mobile phones are mainly used for social purposesin order to remain in contact with friends and relatives.Finally, the recent earthquake highlights how important mobile phones are in situations of emergency. Landlineswere down, but thanks to mobile phones populationswere warned or were able to warn their friendsand relatives on the spot or from abroad. They alsomade it easier to coordinate rescue work. Mobile phoneswill be playing a key role in Haiti’s reconstruction.

PROPARCO has financed a great number of mobile operators in Africa, latin America and Asia for an amount totalling €200M.

44 ANNUAL REPORT PROPARCO 2009Selecting projects for their impacts

PROMOTING SOCIAL ANdENVIRONMENTAL RESPONSIBILITY (CSR)

PROPARCO’s operations are subject to an assessment of the environmental and social risks they are likely to cause. The aim of this process is to help its partners improve the environmental and social quality of their projects. AFD Group has set up a spe-cial team for this which is in charge of:

• defining the environmental and social due diligence to be conducted for projects;

• advising project teams and all partners on how to conduct this due diligence;

• building partnerships with other donors.Through its financing, PROPARCO aims to disseminate CSR practices and raise its clients’ awareness of them, particularly banks which are vehicles for the development of CSR in businesses. It promotes and supports players that implement responsible practices by providing a range of technical and financial solu-tions tailored to their needs.

COMPLIANCEAND RISK MANAGEMENT

The Company has implemented a series of mechanisms that allow it to manage its operations and the inherent risks :

• applications for financing are examined by three different committees prior to the financing decision. When they are submitted to these committees, the applications are examined by different independent departments which give an opinion on the project. These opinions concern whether the applications are in line with PROPARCO’s mandate and its requirements in terms of CSR, as well as the level of financial risk they imply for the company. The financial situation of beneficiaries is monitored throughout the duration of the financing;

• AFD’s Permanent and Compliance Control Department coordinates and supervises the internal control and makes a second-level control on the risk of non-compliance. It controls the due diligence conducted by the operational departments in terms of anti-money laundering and com-bating the financing of terrorism;

• PROPARCO is also audited by AFD’s Inspectorate General Department which is in charge of periodic controls on the compliance of operations, the level of risk as well as controls on compliance with procedures.

PROPARCO has integrated CSR into both its in-house activities and the projects it finances.

PROPARCO is a financial institution and as such is subject to banking regulations.

PROPARCO’s financing in 2009will help support the CSR processesof 4 000 businesses.

PROPARCO’s activities to combat climate change are constantly rising.

A RISING NUMBER OF "CLIMATE" PROJECTS

In 2009, fourteen projects totalling €310M were financed. These projects now concern all four of PROPARCO’s operational depart-ments (banks, corporates, infrastructure, private equity): biogas-based cogeneration projects or renewable energy equipment manufacturing; hydropower or biogas pro-duction plants; lines of credit earmarked to finance global public goods (fight against cli-mate change and major pandemics, biodiver-sity preservation). These lines of credit meet general eligibility and reporting criteria.The increasing importance PROPARCO gives to projects to limit environmental impacts has also been underscored with the creation of a new cross-functional position this year devoted to climate change and the appoint-ment of correspondents in each department.

Businesses in developing countries sometimes lack capacities which can lead to poor performance. Their need for financing may be widely recognised, but it is also necessary to meet their needs in terms of tech-nical assistance. In the framework of FISEA, AFD has decided to earmark €5M to finance consultant mis-sions (to improve information systems, marketing , human resources, etc.) in order to support the busi-nesses in which the fund will be investing. In 2009, €150 000 were allocated to the AfricInvest Financial Sector Fund for technical assistance provided to the financial institutions in its portfolio.

All projects that have significant impacts in terms of greenhouse gas emissions are sub-ject to a systematic estimation of their carbon balance. PROPARCO estimates the amount of gross emissions caused by the project (for example, relating to fossil fuel combustion to produce electricity or heat), the reduc-tion of emissions (particularly for projects to switch to fuels with lower emissions or heat recovery projects) and the emissions avoided compared to a benchmark scenario (specifi-cally for projects to produce electricity using renewable energy).

MEETING THE NEED FOR BUSINESS UPGRADING

46 ANNUAL REPORt PROPARCO 2009Operational and financial results

47ANNUAL REPORt PROPARCO 2009Operational and financial results

OPERATIONALAND FINANCIAL ReSULTS2009 was a new year of growth for PROPARCO which fully playedits countercyclical role during the financial crisis. Its strong financialresults underscore the soundness of its economic model basedon long-term financing for the private sector in developing economies.

48 ANNUAL REPORt PROPARCO 2009Operational and financial results

In FY 2009, PROPARCO’s total commitments in loans and equity investmentsreached €1 121.2M, up 42% on 2008 (€789.4M).

OPeRATIONAL RESULTS

In FY 2009, PROPARCO’s total commitments in loans and equity investments reached €1.1bn, up 42% on 2008 (€789.4M). This extremely good result can be explained by a combination of several factors. First, there was a sharp rise in sub-participation investments with AFD as a result of closer partnerships being forged (€262.8M of commitments in 2009) and cofinancing with the other European and multilateral development insti-tutions (€100M of commitments). Second, the geographical expansion of PROPARCO’s activities led to an increase in opera-tions in Asia and Latin America. Finally, the 2009 international

financial crisis created a number of investment opportunities in the financial sector, particularly in the major emerging countries.It is also worth noting that PROPARCO made a €62.3M equity investment on behalf of the FISEA fund (Investment and Support Fund for Businesses in Africa launched in April 2009 and one of the three cornerstones of the French Initiative for Growth and Employment in Africa).

BREAKDOWN OF COMMItMENtSBY PRODUCt (IN €M)

LOANS AND GUARANTEES

PROPARCO EQUITY INVESTMENTS

LOANS ON BEHALF OF THIRD PARTIES

FRENCH OVERSEAS TERRITORIES

AFD SUB-PARTICIPATION

FISEA

216in 2004

370in 2005

401in 2006

598in 2007

789in 2008

1 121in 2009

193

185

252

33

85

254 410 458 655

60

7894

33

68

32

65

62

263

30

54

42

140

111

The geographical breakdown of the portfolio indicates that Sub-Saharan Africa remains the top area for PROPARCO’s activities and accounts for 44% of the company’s loans and equity investments.

GEOGRAPHICAL BREAKDOWN OF tOtAL PORtFOLIO (LOANS AND EQUItY INVEStMENtS) IN FOREIGNCOUNtRIES (AS % OF tOtAL PORtFOLIO)

29% Mediterranean and Middle East

44% Sub-Saharan Africa

17% Asia

4%Multi-country

6%Latin America and Caribbean

Investment approvals

Equity portfolio structure

Geographical and sectoral breakdown

eQUITY INVeSTMeNTS

At 31 December 2009, the gross value of PROPARCO’s equity portfolio and other shareholdings stood at €269.4M (including operations on behalf of third parties) and included 92 shareholdings in nine banking establishments, forty-six investment funds, nineteen financial establishments or insu-rance companies, ten industrial or commercial companies,

three hotels and five infrastructure and mining companies. Total provisions for equity investments reached €5.9M, i.e. 2.3% of the gross portfolio and 3.4% of paid-up investments, excluding investments made on behalf of third parties.

Paid-up capital, including on behalf of third parties, stood at €185.7M at 31 December 2009 against €144.5M at31 December 2008.

The graphs below show the sectoral and geographical breakdown of paid-up investments.

PROPARCO approved twenty-two equity investments in 2009 - against seventeen in 2008 - which represents an investment volume of €111.4M, i.e. an average of €5.1M per investment (volume up by over 12.5% compared to the previous year):

• fifteen direct investments totalling €59.0M were autho-rised in 2009 (against eight in 2008), i.e. an average of €3.9M per project. Ten of these projects were in Africa, in the banking sector (Algeria, Kenya, Lebanon and Tanzania), the agribusiness sector (Cameroon, Egypt and Morocco) and the financial sector (one project in several countries in the region and one in South Africa) and industry (Tunisia). Asia benefitted from two investments in the microfinance sector in Cambodia. One investment was approved in the Latin America-Caribbean region in the urban infra-structure sector in Jamaica. Finally, two investments were approved in a microfinance institution operating in diffe-rent geographical areas.

• seven equity investments totalling €52.4M were approved in investment funds in 2009 (against nine in 2008), i.e. an average of €7.5M per project. Infrastructure was the main sectortargeted by these funds and represented 48% of approvals,

the remaining 52% concerned multi-sectoral funds. Their activities are concentrated in Africa (five equity investments) and Asia (two equity investments).

Subscriptions in 2009 (authorised in 2009 or before) con-cern five investment funds, three financial companies, two banks, two companies in the agribusiness sector and, finally, a leasing company. The FISEA fund operates exclusively in Sub-Saharan Africa and this year approved thirteen projects for an amount total-ling €62.3M, i.e. an average of €4.8M per project. The typo-logical breakdown is as follows: six projects concern direct investments totalling €12.8M in the banking sector (Congo and Sudan), the microfinance sector (Côte d’Ivoire and one in several countries in the region) and the agribusiness sector (Kenya and Madagascar). Six other projects concern equity investments in pan-African investment funds for an amount totalling €47.8M in the sectors of finance, microfinance, SMEs and agribusiness. Finally, a project was approved for a €1.7M mezzanine debt transaction with an agribusiness in Kenya.

EQUItY INVEStMENtS: GEOGRAPHICAL BREAKDOWN (PORtFOLIO OF PAID-UP INVEStMENtS)

27%Multi-country

5%French Overseas Territories

21%Mediterranean and Middle East

26%Sub-Saharan Africa

21%Asia

EQUItY INVEStMENtS: SECtORAL BREAKDOWN(PORtFOLIO OF PAID-UP INVEStMENtS)

50%Investment funds

9%Infrastructure

28%Financial sector

13%Corporates

Sectoral breakdown

LOANS: SECtORAL BREAKDOWN(AS % OF tOtAL COMMItMENtS)

Geographical breakdown

The percentage of loans granted to banking establishments stood at 44% against 60% in 2008. The amount of loan commitments in this sector (€417.6M) included €30M of financing granted to banking establishments in the French Overseas Territories. Commitments in the infrastructure and mining sector (€398M) rose sharply compared to 2008 (€133.3M), parti-cularly thanks to two mega projects in Jordan and an invest-ment in a multilateral debt fund in Sub-Saharan Africa. They account for 42% of the total amount of loans approved against 19% in 2008.Commitments in the corporate sector in 2009 remained at a high level at €131.9M (against €143.4M in 2008) and accounted for 14% of approved financing (against 21% in 2008).

Loan commitments in foreign countries covered twenty-five countries, the largest being Jordan (€113.6M), Brazil (€92.1M),South Africa (€61.9M), Turkey (€81.5M) and India (€55.3M). These figures do not include multi-country commitments. Moreover, PROPARCO granted two financings to the French Overseas Territories: one in French Polynesia and one in New Caledonia both for €15M.Sub-Saharan Africa - PROPARCO’s traditional business area - remained the main sector for loan activity with 32.8% of approvals in foreign countries in 2009. The most important operations in this region concerned two banks in South Africa, a loan in the water sector in Namibia and an invest-ment in a multilateral debt fund for infrastructure financing in Sub-Saharan Africa.

14%Corporates

44%Financial sector

42%Infrastructure

LOANS: GEOGRAPHICAL BREAKDOWN(AS % OF COMMItMENtS IN FOREIGN COUNtRIES)

28%Mediterranean

and Middle East

18%Asia



Forty-seven loans were approved during FY 2009 totalling €947.5M in gross approvals against €683.5M in 2008, i.e. an average €20.2M per transaction (against €14.2M in 2008).

This increase in the average size of transactions was made possible thanks to €262.8M of AFD sub-participations in 2009. Total loan disbursements stood at €500.4M.

Approvals and disbursements

LeNDING OPERATIONS


As we can see from the following graph, outstanding loans (excluding the French Overseas Territories) were quite equally divided between PROPARCO’s geographical areas. The main beneficiary countries for outstanding loans were, in descending order: Turkey, Kenya, Tunisia, South Africa and Morocco and represent almost 55% of the total when taken together.

OUTSTANDING LOANS as at 31 december 2009

Sectoral breakdown

Geographical breakdown

Gross outstanding loans at 31 December 2009 (excluding loans on behalf of third parties) totalled €1 386.1M in gross value(€1 029.8M at year end 2008) with 55.9% for loans to banking establishments and 44.1% to non-financial corporates.Outstanding amounts from banking establishments were made up of 160 loans granted to 65 clients for a total of €774.9M at 31 December 2009 (€594.8M at year end 2008). The remaining outstanding amounts totalled €611.2M (€435M at year end 2008) broken down into the infrastruc-ture and mining sector (€415.6M) and corporates (€195.6M). It was made up of 105 loans granted to 79 clients. Outstanding amounts from banking establishments in foreign countries, excluding the French Overseas Territories, stood at €576.4M at 31 December 2009. Outstanding amounts from clients in the infrastructure and mining sector and corporate clients accounted for €413.6M and €179.0M respectively.

LOANS: GEOGRAPHICAL BREAKDOWN FOREIGNCOUNtRIES (AS % OF OUtStANDING AMOUNtSIN FOREIGN COUNtRIES)

16%Asia


30%Mediterranean and Middle East


LOANS: SECtORAL BREAKDOWN(AS % OF tOtAL OUtStANDING LOANS)

14%Corporates

30%Infrastructure

56%Financial sector

ASSETS 31/12/2008 31/12/2009

RECEIVABLES FROM FINANCIAL INSTITUTIONS 967 366 1 076 150

SHORT-TERM 107 849 47 368

related parties 107 664 46 439

on behalf of third parties 185 929

LONG-TERM 859 517 1 028 782


TRANSACTIONS WITH NON-FINANCIAL INSTITUTIONS 448 747 637 306

on behalf of third parties 28 334 34 138

BONDS AND OTHER FIXED INCOME SECURITIES 829 10 364

INVESTMENTS AND OTHER LONG-TERM SECURITIES 209 131 253 432

on behalf of third parties 588 470

INTANGIBLE ASSETS 6 4

PROPERTY, PLANT AND EQUIPMENT 669 1 909

OTHER ASSETS 1 384 1 305

related parties 0 0

PREPAYMENTS AND ACCRUED INCOME 1 159 4 156

related parties 179 405

TOTAL ASSETS 1 629 291 1 984 626

LIABILITIES 31/12/2008 31/12/2009

BORROWINGS OWED TO FINANCIAL INSTITUTIONS 988 120 1 296 355

SHORT-TERM 5 462

related parties 5 462

LONG-TERM 988 115 1 295 893

related parties 981 556 1 292 093

OTHER LIABILITIES 100 608 119 676

on behalf of third parties 29 095 35 369

ACCRUALS AND DEFERRED INCOME 3 847 11 370


PROVISIONS 28 613 32 529

EQUITY 508 103 524 696

CAPITAL SUBSCRIBED 485 330 485 330

share premium 65 281 65 281

LEGAL RESERVE 1 948 2 990

RETAINED EARNINGS 0 12 783

INCOME FOR THE YEAR 20 825 23 593

TOTAL LIABILITIES 1 629 291 1 984 626

BALANCE SHEET as at 31 December 2009 (in thousands of euros)


INCOME STATEMENT 31/12/2008 31/12/2009

INTEREST AND SIMILAR INCOME 68 753 73 769

ON OPERATIONS WITH FINANCIAL INSTITUTIONS 42 059 44 515


ON OPERATIONS WITH NON-FINANCIAL INSTITUTIONS 26 683 29 255

ON BONDS AND OTHER FIXED INCOME SECURITIES 11 -1

INTEREST AND OTHER SIMILAR CHARGES -36 434 -39 308

ON OPERATIONS WITH FINANCIAL INSTITUTIONS -36 434 -39 308

related parties -35 629 -39 174

INCOME FROM VARIABLE INCOME SECURITIES 5 390 6 435

FEE INCOME 4 394 11 566

FEE EXPENSE -524 -466

OTHER BANKING OPERATING INCOME ITEMS 517 0

related parties 0 0

OTHER BANKING OPERATING EXPENSE ITEMS -4 -440

NET BANKING INCOME 42 092 51 556

OTHER ADMINISTRATIVE EXPENSES -16 896 -22 353

related parties -12 663 -15 490

ALLOCATION TO DEPRECIATION AND AMORTISATION -31 -326

GROSS OPERATING INCOME 25 165 28 877

COST OF RISK -11 137 -3 551

OPERATING INCOME 14 028 25 326

GAINS OR LOSSES ON PROPERTY AND EQUIPMENT 9 226 7 350

INCOME FROM ORDINARY ACTIVITIES BEFORE TAX 23 254 32 676

ALLOCATIONS/RECOVERIES OF FGBR 3 993 0

EXCEPTIONAL ITEMS 1 378 -256

EXCEPTIONAL REVENUE 1 378 0

EXCEPTIONAL EXPENSES 0 -256

CORPORATE INCOME TAX -7 800 -8 827

NET INCOME 20 825 23 593

INCOME STATEMENT as at 31 December 2009 (in thousands of euros)

APPENDIX

COMMITTED AND PROFESSIONAL TEAMSat 1st March 2010

OrganisatiOnand it suppOrt

Marie-Paule SIMONNET

dEputY CHiEF EXECutiVE OFFiCEr

Philippe BASSERYAssistant: Flora TOTA

FinanCE and adMinistratiOn

dEpartMEnt

Marie SENNEQUIERAssistant: Catherine MURE

investment Officers:Jérémy BRAULTMathieu BRELETCédric MARTIN

administrative Officers:Didier AMIOT

Nicole ARTICO Maïté CHAPRONEvelyne WAGNER

CrEdit and pOrtFOLiO

dEpartMEnt

Hélène TEMPLIERDeputy: Emmanuelle DROUIN

Assistant: Anita PEREZ

investment Officers:Dorothée DECKERT

Jean-Benoît du CHALARDIskander EZZERELLI

Alexandra GEORGANDASReza HASSAM DAYAAstrid JARROUSSEManuel MARTINSOlivia REVEILLIEZDidier ROUSSEL

Jean-Baptiste SABATIEMarie-Violaine BIANCARELLI

Danièle THEZE

administrative Officers:Annie DESCOINS

Diane NGO

LEgaL dEpartMEnt

MarianneSIVIGNON-LECOURT

Deputy: Chrystelle GUERINAssistant: Isabelle GILLET

Corporate lawyers:Christine AVRIL POTTIER

Christel BOURBON-SECLETEmilie CANAVESE

Fariza CHALALDavid FARDEL

Olivier FOURCADESandrine GAUPeter GLAUSE

Sophie VERMOREL

administrative Officers:Pascale DENISE

Valérie MARCUSDelphine QUEFFELEC

annual report proparCo 2009Appendix 57

dEputY CHiEF EXECutiVE OFFiCEr

intErnatiOnaL nEtwOrk

Laurent DEMEYAssistant: Flora TOTA

CrOss-FunCtiOnaL pOsitiOns

technical assistance:Cyril RENAULT

Emerging countriesand carbon finance:

Paul de la GUERIVIERE

Environmental Officer:Odile CONCHOU

inFrastruCturE and Mining

Jérôme BERTRAND-HARDYDeputy: Emmanuelle MATZ

Assistant: Elisabeth NGUYEN

investment Officers:Manelle AIT SAHLIA

Xavier DARRIEUTORTCharlotte DURAND

Alice LUCASStéphanie MOUEN

Pierre-Alain PACAUDVéronique PESCATORI

Nathalie YANNIC

administrative Officer:Catherine LEPERE

Banks and FinanCiaL MarkEts

Amélie JULYAssistant: Marie-Thérèse ROCHE

investment Officers:Bérengère BASSET

Jean-Sébastien BERGASSEMyriam BOUSLAMADelphine FRENOUX

Rahim HARISLaureen-Astrid KOUASSI

Sebastian MENTHONNEXElodie PARENT

Maria PENANahed SAAB

COrpOratEs

Stéphanie LANFRANCHIAssistant: Catherine BAL

investment Officers:Guédi AINACHE

Guillaume BARBEROUSSEVirginie BLEITRACH

Julie GONNETEmilie-Gang HUANG

Caroline POUJOLAnne RORET

Thomas SKURTISDenis SIREYJOL

priVatE EQuitY

Marie-Hélène LOISONAssistant: Isabelle NIANGANE

investment Officers:Kamal DADI

Isabelle LAURENCINAdeline LEMAIRE

Guillaume MORTELIERAnne-Sophie RAKOUTZ

Pierre ROUSSEAUMatthew SAVILLE

Christophe SCALBERTAglaé TOUCHARD

administrative Officer: Sandra GIRARD

Luc RIGOUZZOAssistant: Ia GEBAROWSKI

CHiEF EXECutiVE OFFiCEr

COMMuniCatiOnBenoît VERDEAUX

annual report proparCo 2009Appendix58

PROJEcTS APPROvED IN 2009

Algeria Finance and banking Equity investment to support the development of a company Corporate $2M

Brazil Finance and bankingFinance and bankingForests and forestryEducationHealth

Line of credit to a bank to refinance loans granted to clientsLine of credit to a finance and investment bankLoan approved to finance a forestry and industrial programLoan approved to finance the acquisition and construction of a campusLoan to finance the extension and modernisation of a hospital

Financial establishmentFinancial establishment Corporate Corporate Corporate

$50M$30M$20M$8M$15M

Cambodia AgricultureFinance and bankingFinance and banking

Refinancing for a shareholder loan in an agribusiness plantLoan and equity investment in a microfinance institution Loan approved to support a bank’s growth

CorporateFinancial establishmentFinancial establishment

$7M$5.2M$10M

Cameroon Agriculture Equity investment in a company during a capital increase Corporate FCFA1.5bn

Chad Telecoms Loan approved to support the expansion of a mobile phone network Corporate FCFA6bn

China EnergyAnimal health

Loan for the construction and development of a biodigestorLoan approved for the extension of a vaccine production line

CorporateCorporate

$3.4M$7.5M

Dominican Republic

Finance and bankingTransportationFinance and banking

Line of credit for the long-term expansion of a bank’s portfolioLoan approved for the construction and renovation of a boulevard popular with touristsLine of credit approved to finance export activities in the health and energy sectors

Financial establishmentCorporateFinancial establishment

$25M$20M$25M

Egypt InfrastructureAgribusiness

Loan approved to finance the construction of a hotel complexEquity investment in an agribusiness

CorporateCorporate

$23M$3.2M

France Finance and banking Investment in the subsidiary of an African bank offering remittance services for migrants Financial establishment $1M

French Polynesia Finance and banking Line of credit for a bank’s long-term financing Financial establishment $15M

Guatemala Agribusiness Loan approved to finance a production increase in a sugar company Corporate $20M

India Finance and banking Finance and bankingEnergyInfrastructure

Loan to a bank to finance its projects and developmentLine of credit earmarked to finance a bank’s environmental projectsLoan to finance a wind farmEquity investment in an investment fund

Financial establishmentFinancial establishmentCorporateInvestment fund

$20M$50M$7M$10M

Indonesia Finance and banking Line of credit approved to develop a microfinance activity Financial establishment $20M

Jamaïca Infrastructure Loan and equity investment approved to finance the extension of a highway Corporate $50M

Jordan EnergyEnergy

Loan approved to finance the construction of a combined cycle gas power plant Loan approved to improve water supply for the city of Amman

CorporateCorporate

$50M$100M

Kenya Finance and banking Equity investment in the capital of a bank Financial establishment $7.7M

Lao PDR Energy Loan approved to build the extension of a hydropower plant Corporate $40M

Lebanon Finance and banking Finance and banking

Line of credit to a bank to strengthen its equity and growthParticipation in the capital increase of a bank

Financial establishmentFinancial establishment

$15M$15M

Mauritius Island Finance and banking Loan approved for a bank to finance its balance sheet growth Financial establishment $6M

Morocco Agribusiness Equity investment in an agribusiness group Corporate MAD35M

Namibia Water Loan for a seawater desalination plant Corporate $40M

New Caledonia Finance and banking Line of credit approved for a bank’s long-term refinancing Financial establishment $15M

Nigeria Telecoms Loan approved to finance new telecom towers Corporate $25M

Pakistan Energy Loan approved to finance the construction of a hydropower plant Corporate $26M

Senegal Finance and banking Loan to restore a bank’s solvency Financial establishment FCFA6.7bn

South Africa Finance and banking Finance and banking Finance and banking Finance and banking

Equity investment in a rating agencyLine of credit approved to finance a bank’s growthLine of credit earmarked to finance export linesLine of credit approved for the development of a bank’s activity

CorporateFinancial establishmentFinancial establishmentFinancial establishment

$1.5M$35M$30M$8M

Sri Lanka Finance and banking Line of credit earmarked to boost a bank’s economic activity Financial establishment $10M

Syria Cement Loan for the construction and operation of a cement plant Corporate $30M

Tanzania Finance and banking Equity investment in the capital of a bank Financial establishment $4.2M

Togo Finance and banking Line of credit approved for a bank to refinance private sector projects Financial establishment $20M

Tunisia Construction / Industry Equity investment in an SME specialised in road transport Corporate TND5M

Turkey EnergyFinance and bankingEnergy

Loan approved to finance the creation of a wind farmLine of credit approved in the framework of the climate facilityLoan to finance glass manufacturing for a solar panel company

CorporateFinancial establishmentCorporate

$11.5M$50M$20M

Uganda Finance and bankingFinance and banking

Line of credit approved for a bank’s long-term refinancingLine of credit approved to refinance long-term corporate operations

Financial establishmentFinancial establishment

$15M$30M

Vietnam TextilesTransportation

Loan approved to finance the creation of new production unitsLoan to finance the construction of a port terminal

CorporateCorporate

$16M$15M

Multi-country Finance and banking Finance and banking Finance and banking Finance and banking InfrastructureFinance and bankingMulti-sectorFinance and banking

Equity investment in an investment fund specialised in SMEsLine of credit to a European vehicle financing loans in AfricaParticipation in an investment fund specialised in infrastructure projectsParticipation in an African investment fundLoan approved for an African infrastructure financing facilityLoan and equity investment for the development of a microfinance activityParticipation in an Asian investment fundInvestment in a fund specialised in financing SMEs in Africa

Investment fundFinancial establishmentInvestment fundInvestment fundInternational organisationFinancial establishmentInvestment fundFinancial establishment

$12.5M$20M$8M$15M$100M$20M$10M$10M

Country Sector Project Beneficiary Amount


kEy SOcIAL FIGURESat 31 december for each year

staFF BrEakdOwn BY sOCiO-prOFEssiOnaL CatEgOrY(aCCOunting aLLOCatiOn)

pErCEntagE OF wOMEn, partiCuLarLY ManagErs (headquarters)

in 2009 9810

in 2008 7210

in 2007 568

EXECutiVEs EMpLOYEEs

EVOLutiOn in nuMBEr OF LOCaL EXECutiVEs (OpEratiOnaL staFF)**Executives recruited locally in prOparCO’s regional offices

in 2008 6

in 2009 7

in 2007 4

pErCEntagE OF staFF trainEd during tHE YEar

in 2008 90%

97%in 2009

94%in 2007

nuMBEr OF training HOurs pEr pErsOn trainEd

in 2008

in 2009

in 2007

57

48

45

tOtaL ManagEMEnt

in 2009 59%60%

in 2008 60%60%

in 2007 53%0%

AFD GROUP NETWORk AbidjAn WEST AFRICA

Tel.: (225) 22 40 70 40Fax: (225) 22 44 [email protected]

AbujANIGERIA

Tel.: (234) 9 46 01 911Fax: (234) 9 46 01 [email protected]

AccrAGHANA


Addis-AbebAETHIOPIA, ERITREA,

SUDAN, SOMALIA

Tel.: (251) 11 442 59 01/02Fax: (251) 11 442 59 [email protected]

AlgiersALGERIA


AmmAnJORDAN


AntAnAnArivoMADAGASCAR


bAmAkoMALI

Tel.: (223) 20 21 28 42 Fax: (223) 20 21 86 [email protected]

bAngkok SOUTHEAST ASIA

Tel.: (66) 2 663 60 [email protected]

bAnguiCENTRAL AFRICAN

REPUBLIC


beijingCHINA

Tel.: (86) 10 84 51 12 00Fax: (86) 10 84 51 13 [email protected]

beirutLEBANON

Tel.: (961) 1 420 192Fax: (961) 1 611 [email protected]

brAsiliABRAzIL


brAzzAvilleREPUBLIC OF CONGO


bujumburABURUNDI


cAiroEGyPT

Tel.: (20) 2 2735 17 88Fax: (20) 2 2735 17 90

cAsAblAncA MOROCCO, MAURITANIA,

ALGERIA


cAyenneFRENCH GUIANA,

GUyANA, SURINAME

Tel.: 05 94 29 90 90Fax: 05 94 30 63 [email protected]

colomboSRI LANKA, MALDIVES


conAkryGUINEA, SIERRA LEONE


cotonouBENIN


dAkArSENEGAL, CAP VERDE,

GAMBIA, GUINEAU-BISSAU


dAr es sAlAAmTANzANIA


djiboutiDJIBOUTI


eAst jerusAlemPALESTINIAN AUTO-

NOMOUS TERRITORIES


Fort-de-FrAnceMARTINIQUE,

PETITES ANTILLES

Tel.: 05 96 59 44 73Fax : 05 96 59 44 [email protected]

HAnoiVIETNAM


Ho cHi minH cityVIETNAM

Tel.: (84 8) 38 24 72 43Fax: (84 8) 35 20 69 [email protected]

islAmAbAdPAKISTAN


istAnbulTURKEy

Tel: (90) 212 283 31 11 Fax: (90) 212 283 31 51 [email protected]

jAkArtAINDONESIA


joHAnnesburg SOUTHERN AFRICA

AND MADAGASCAR



kAbulAFGHANISTAN


kinsHAsADEMOCRATIC REPUBLIC

OF CONGO


lAgos NIGERIA

Tel.: (234) 1 2717151

librevilleGABON,

SAO TOME & PRINCIPE


loméTOGO


luAndAANGOLA


mAmoudzouMAyOTTE


mAputoMOzAMBIQUE


mAtA-utuWALLIS & FUTUNA


mexico cityMEXICO

Tel: (52) 55 52 81 17 [email protected]

moroniCOMOROS

Tel: (269) 773 29 10Fax: (269) 773 22 [email protected]

n’djAmenACHAD


nAirobiEAST AFRICA

Tel.: (254) 20 271 12 34 (254) 20 271 10 58Fax: (254) 20 271 79 [email protected]

new delHi SOUTH ASIA

Tel.: (91) 11 23 79 37 47Fax:(91) 11 23 79 37 [email protected]

niAmeyNIGER


nouAkcHottMAURITANIA


noumeANEW CALEDONIA,

VANUATU, SOUTH

PACIFIC INSULAR STATES


ouAgAdougouBURKINA FASO


pApeeteFRENCH POLyNESIA


pHnom penHCAMBODIA

Tel.: (855) 23 426 360/ 426 036Fax: (855) 23 426 [email protected]

pointe-à-pitreGUADELOUPE


port-Au-princeHAITI


port-louisMAURITIUS


rAbAtMOROCCO


sAint-denisREUNION,

FRENCH SOUTHERN

AND ANTARTIC LANDS


sAnto-domingoDOMINICAN REPUBLIC,

BAHAMAS, CUBA,

JAMAICA


sAint-pierreSAINT-PIERRE & MIQUELON


sAnAAyEMEN

Tel.: 00 (967) 1 448 308 Fax: 00 (967) 1 448 [email protected]

são pAuloBRAzIL


tunisTUNISIA

Tal.: (216) 71 861 799Fax: (216) 71 861 [email protected]

vientiAneLAO PDR

Tel: (856) 21 24 32 95Fax: (856) 21 24 32 [email protected]

yAoundéCAMEROON, CENTRAL

AFRICAN REPUBLIC,

EQUATORIAL GUINEA


: PROPARCO offices

> MORE INFORMATION ON THE OFFICE’S WEB PORTAL THROUGH WWW.PROPARCO.FR

PROPARCO COORDINATION Raphaëlle de Maisonneuve and Benoît Verdeaux

GRAPHIC DESIGN AND CREATION

28, rue du Faubourg Poissonnière 75010 Paris – www.noise.frEditing and coordination: Lionel Bluteau. Assistant: Jeanne Sophie Camuset. Art Direction: Dorothée Thomassin and Marion Pierrelée. Typographic design: Julien Desperiere, Adrien Ampuy. Photoengraving: RVB Editions. Printed by: Vision Prod’

PHOTO CREDITS COVER: Getty images / Alexander NesbittPAGE 4 : Nicolas Fornage. PAGES 6-7 : Jean-Pierre Barral. PAGE 8 : Dominique Fradin. PAGE 9 : Dominique Fradin. PAGE 11: Dominique Fradin. PAGE 12 : Vincent Joguet. PAGES 14-15 : PROPARCO PAGES 18-19 : Nicolas Fornage. PAGE 20 : Grégory Scopélitis. PAGE 21 : Benoît Verdeaux. PAGE 22 : Virginie Bleitrach. PAGE 23 :Nicolas Fornage. PAGE 24 : Eric Thauvin. PAGE 25 : Diwaco. PAGE 26 : Nicolas Fornage. PAGE 27 : Grégory Scopélitis. PAGES 28-29 : Tim Montorfani. PAGE 31 :AESA. PAGE 33 : Emilie-Gang Huang. PAGES 34-35 : Chantal Régnault. PAGE 36 : Didier Gentilhomme. PAGE 37 : Benoît Verdeaux. PAGES 38-39 : Emilie-Gang Huang. PAGES 40-41 : Nicolas Fornage. PAGE 42 : Benoît Verdeaux. PAGE 43 : AFP Photo / David Goldman. PAGE 44 : Emilie-Gang Huang. PAGE 45 : Eric Thauvin.PAGES 46-47 : Jean-Pierre Barral. PAGES 54-55 : Chantal Régnault.

This report has been printed using vegetal and non-mineral ink. Vegetal inks for publishing mainly use soya and colza and have several advantages: they use renewable resources (sunflower, colza, soya and linseed oils), using them reduces carbon dioxide emissions and a comparative analysis between mineral oils and vegetable oils shows that the latter are easily biodegradable.

Legal deposit: April 2010

151, rue Saint-Honoré - 75001 ParisTel.: +33 1 53 44 31 08 - Fax: +33 1 53 44 38 38www.proparco.fr

Annual report2009

an

nu

al

rep

or

t 2

009

pr

opa

rCo

GEOGRAPHICAL AND SECTORAL BROCHURES

• PROPARCO in Sub-Saharan Africa• PROPARCO in China• Financing access to sustainable energy • Supporting responsible microfinance• FISEA: Getting involved and investing in African businesses

FINANCIAL BROCHURES

• PROPARCO’s financial products in the Middle East• PROPARCO’s financial products in Morocco• PROPARCO’s financial products in Tunisia• PROPARCO’s financial products in West Africa

PRIVATE SECTOR & DEVELOPMENT MAGAZINE

Take out a free subscription to PROPARCO’s bimonthly magazine – a platform for debateon the role the private sector plays in developing countrieswww.proparco.fr

• N ˚ 5: Africa’s financial markets: a real development tool? • N ˚ 4: What are the economic and social Impacts of the mobile phone sector in developing countries? • N ˚ 3: What balance between financial sustainability and social issues in the microfinance sector? • N ˚ 2: How can the private sector help provide access to drinking water in developing countries?• N ˚ 1: SME financing in Sub-Saharan Africa

FILMS

Films about projects financed by PROPARCO (5 minutes long)

• Teatime in Gachege, Kenya• Sustainable cogeneration in Kenya• Financing private equity investment in Morocco• Financing microfinance in Morocco• South Africa: Supporting “Black Economic Empowerment” • Development and the private sector

WEBSITEVisit our website: www.proparco.fr

PublicationsAll our publications and films can be downloaded at www.proparco.fr, under Publications

2009 annual report proparco

Documents

financial results p

financial sustainability

south p

microfinance sector

impacts p

morocco financing microfinance

private sector plays

private sector help