2007 annual report proparco

Annual report2007

Investing ina sustainable future

PROPARCOGroupe Agence Française de Développement

Bangkok (Cambodia, Indonesia,Laos, Thailand et Vietnam)Antoine Vigier14 F Abdulrahim Place990 Rama IV Road, Silom, Bangkok10500, ThailandTel : +662 636 12 35Fax : +662 636 12 [email protected]

PékinPaul de la Guérivière7 Floor, Block C, East Lake Villas,35 Dongzhimenwai Avenue,Dongcheng District,Beijing 100027Tél : (8610) 84 51 12 00Fax : (8610) 84 51 13 [email protected]

Sao Paulo (Brazil, Suriname)Christophe BlanchotEdificio Parque Cultural PaulistaAvenida Paulista, 37-4° endar01311-902 – Sao Paulo – BrasilTel : + 55 11 22 46 27 91Fax : + 55 11 22 46 27 99

New Delhi (India, Pakistan)Jean-Pierre Barral1A Jan PathDelhi 11001 - IndiaTel + 91 11 23 79 37 47Fax : + 91 11 23 79 37 38

Lagos (Nigeria, Benin, countries ofthe Economic and MonetaryCommunity of Central Africa)Charles-André Le PapeMelrose Office suitesPhoenix House Plot 26EAbdulrahman OkeneClose Off Ligali Ayorinde Street -Victoria Island - LagosNigeriaTel : + 234 12705740

Johannesbourg (South Africa,Zambia, Mozambique, Angola)Laurent KleinBallywoods Office Park1st Floor Block I29 Ballyclare DriveBryanston 021 P.O. Box 786555Sandton 2146Afrique du SudTél (27 11) 540 7100Fax (27 11) 540 [email protected]

Nairobi (Kenya, TanzaniaOuganda)Patrick AbbesRoyal Ngao House - Hospital RoadP.O Box 45995Nairobi, KenyaTel : (254 20) 271 84 52Fax : (254 20) 271 79 [email protected]

TunisGhislain de ValonImmeuble Miniar - Bloc B -3rd and 4st floorRue du Lac d'Ourmia1053 Les Berges du LacTel : 71 861 799Fax : 71 779 [email protected]

Abidjan - IVORY COSTE, LIBERIATel. : (225) 22 40 70 40Fax : (225) 22 44 21 [email protected]

Accra - GHANATel. : (233) 21 77 87 55Fax : (233) 21 77 87 [email protected]

Addis-Abeba - ETHIOPIA,ERITREA, SUDAN, SOMALIATel. : (251) 11 442 59 01Fax : (251) 11 442 59 [email protected]

Alger - ALGERIATel. : (213) 21 69 43 00Fax : (213) 21 48 41 [email protected]

Amman - JORDANIATel. : (962 6) 46 04 702Fax : (962 6) 46 04 [email protected]

Antananarivo - MADAGASCARTel. : (261) 20 22 200 46Fax : (261) 20 22 347 [email protected]

Bamako - MALITel. : (223) 221 28 42Fax : (223) 221 86 [email protected]

Bangui - CENTRAL AFRICAN REP.Tel. : (236) 61 03 06Fax : (236) 61 45 [email protected]

Beyrouth - LEBANONTel. : (961) 1 420 192Fax : (961) 1 611 [email protected]

Brazil - BRASILIATel. : (55) 61 33 22 43 20Fax : (55) 61 33 21 43 [email protected]

Brazzaville - DEM. REP. OF CONGOTel. : (242) 81 53 30Fax : (242) 81 29 [email protected]

Bujumbura - BURUNDITel. : (257) 25 59 [email protected]

Casablanca - MOROCCOTel. : (212) 22 29 53 97Fax : (212) 22 29 53 [email protected]

Cayenne - GUYANA, SURINAMTel. : 05 94 29 90 90Fax : 05 94 30 63 [email protected]

Colombo - SRI LANKATel. : (94) 11 250 23 20Fax : (94) 11 250 52 [email protected]

Conakry - GUINEA, SIERRA LEONETel. : (224) 30 41 25 69Fax : (224) 62 66 12 [email protected]

Cotonou - BENINTel. : (229) 21 31 34 53Fax : (229) 21 31 20 [email protected]

Dakar - SENEGAL, CAP-VERDE,GAMBIA, GUINEA-BISSAUTel. : (221) 849 19 99Fax : (221) 823 40 [email protected]

Djibouti - DJIBOUTI, ERITREA,SUDAN, YEMENTel. : (253) 35 22 97Fax : (253) 35 48 [email protected]

Douala - CAMEROONTel. : (237) 342 50 67Fax : (237) 342 99 [email protected]

Fort-de-France - MARTINIQUE,PETITES ANTILLESTel. : 05 96 59 44 73Fax : 05 96 59 44 [email protected]

Hanoï - VIETNAMTel. : (844) 823 67 64Fax : (844) 823 63 [email protected]

Hô Chi Minh-Ville - VIETNAMTel. : (84) 8 824 72 43Fax : (84) 8 825 06 [email protected]

Islamabad - PAKISTANTel. : (92) 51 265 51 96Fax : (92) 51 265 51 [email protected]

Istanbul - TURQUEYTel. : (90) 212 283 31 11Fax : (90) 212 283 31 [email protected]

Jakarta - INDONESIATel. : (62) 21 25 50 23 00Fax : (62) 21 25 50 23 [email protected]

Est-Jerusalem - PALESTINIAN TERRI-TORIESTel. : (972) 2 54 00 423Fax : (972) 2 54 00 [email protected]

Kinshasa - DEM. REP. OF CONGOTel. : (243) 99 86 82 598Fax : (243) 99 99 75 [email protected]

Cairo - EGYPTTél : (20) 2 735 17 88Fax : (20) 2 735 17 [email protected]

Libreville - GABON, ANGOLA,SAO TOME AND PRINCIPETel. : (241) 74 33 74Fax : (241) 74 51 [email protected]

Lome - TOGOTel. : (228) 221 04 98Fax : (228) 221 79 [email protected]

Mamoudzou - MAYOTTETel. : 02 69 61 05 05Fax : 02 69 61 05 [email protected]

Maputo - MOZAMBIQUETel. : (258) 21 30 43 00Fax : (258) 21 30 37 [email protected]

Mata-Utu - WALLIS AND FUTUNATel. : (681) 72 25 05Fax : (681) 72 20 [email protected]

Moroni - COMOROSTel. : (269) 73 29 10Fax : (269) 73 22 [email protected]

N’Djamena - CHADTel. : (235) 52 70 71Fax : (235) 52 78 [email protected]

Niamey - NIGERIATel. : (227) 20 72 33 93Fax : (227) 20 73 26 [email protected]

Nouakchott - MAURITANIATel. : (222) 525 25 25Fax : (222) 525 49 [email protected]

Noumea - NEW-CALEDONIA,VANUATU - SOUTH PACIFIC ISLANDSTATESTel. : (687) 24 26 00Fax : (687) 28 24 [email protected]

Ouagadougou - BURKINA FASOTel. : (226) 50 30 60 92Fax : (226) 50 31 19 [email protected]

Papeete - FRENCH POLYNESIATel. : (689) 54 46 00Fax : (689) 54 46 [email protected]

Phnom-Penh - CAMBODIATel. : (855) 23 426 360Fax : (855) 23 426 [email protected]

Pointe-à-Pitre - GUADELOUPETel. : 05 90 89 65 65Fax : 05 90 83 03 [email protected]

Port-au-Prince - HAITITel. : (509) 22 45 40 07Fax : (509) 22 44 02 [email protected]

Port-Louis - MAURITUSTel. : (230) 213 64 00Fax : (230) 213 64 [email protected]

Rabat - MOROCCOTel. : (212) 37 63 23 94Fax : (212) 37 63 23 [email protected]

Saint-Denis - REUNION, SEYCHELLES,LAND AND SOUTHERN FRENCHANTARCTIQUESTel. : 02 62 90 00 90Fax : 02 62 21 74 [email protected]

Saint-Domingue - REP. DOMINICANBAHAMAS, CUBA, JAMAICATel. : (809) 547 12 89Fax : (809) 381 05 [email protected]

Saint-Pierre - SAINT-PIERRE& MIQUELONTel. : 05 08 41 06 00Fax : 05 08 41 25 [email protected]

Sanaa - YEMENTel. : (967) 712 65 77 93Fax : (967) 1 269 [email protected]

Vientiane - LAOSTel. : (856) 21 24 32 95Fax : (856) 21 24 32 [email protected]

Yaounde - CAMEROON,CENTRAL AFRICAN REPUBLIC,EQUATORIAL GUINEATel. : (237) 222 00 15Fax : (237) 223 57 [email protected]

ContactsPROPARCO OFFICES A F D G R O U P A G E N C I E S

Agencies and offices of the AFD in foreign countries Agencies and offices of the AFD in OverseasINTERVENTION IN OTHER COUNTRIES ARE TAKEN DIRECTLY TO HEADQUARTERS.

PROPARCO

5, rue Roland Barthes 75598 Paris Cedex 12 - FRANCETel. +33 1 53 44 37 37 - Fax +33 1 53 44 38 38www.proparco.fr

PROPARCO

ANNUALREPORT2007

Key Figures 2007

PROPARCO1977 - 200730 years of sustainable investment

In 2007PROPARCO contributed to

Supporting the growth of 315 corporates

Creating or securing 47 000 jobs

Connecting 22.5 million people to

telecommunications networks

Generating 250 MWof renewable energy

Saving 18 million tons of CO2

Financing access to microfinance

for 100 000 people

Increasing State revenues by €377 M

Commitments for the year €597.8 Mincluding:

Loans – Twenty-nine operations €464.2 M

Equity investments – Seventeen operations €77.9 M

Guarantees – Four operations €55.7 M

Total risk €1.15 billion

Net income €23.7 M

1 PROPARCO: A NORTH/SOUTH COMMUNITYOF INVESTORS SERVING DEVELOPMENT

2 Board of Directors

3 Chairman’s message

4 Public-private governance of North/South partners

5 2007 results and 2008 outlook

6 Men and women serving development

7 A mission: to finance sustainable development indeveloping countries via the private sector

9 PROPARCO’s milestones: geographical expansion anddiversification of financial instruments

10 An extended commercial network

13 MEASURING DEVELOPMENT IMPACTS

14 Systematic impact measurement

15 Profitability vs development impacts

16 Key 2007 indicators

17 2007: A RECORD YEAR FOR PROPARCO’SACTIVITY

18 Record high levels of activity

19 Drawing on sectoral expertise and prospectingnew territories

20 Strengthening partnerships with public andprivate financial institutions

21 GEOGRAPHICALLY TAILORED PRIORITIES22 Reaffirming the African continent as a priority

24 Equity and investment funds in Mediterranean countries

25 Enhancing energy efficiency in emerging countries

28 Supporting sustainable development in France’s Overseaseconomies

29 INTEGRATING SUSTAINABLE DEVELOPMENTAND SOCIAL AND ENVIRONMENTALRESPONSIBILITY IN EACH SECTOR OFOPERATIONS

30 Creating high-performing infrastructure to boost growth

32 Modernising, deepening and securing financial markets

34 Participating in investment funds dedicated to corporatefinancing

35 Supporting productive and service sectors

36 Scaling up projects contributing to corporate Social andEnvironmental Responsibility

37 TAILORING AND EXTENDING OUR RANGE OFFINANCIAL PRODUCTS

38 Strengthening corporate equity

40 Providing loans tailored to each project

41 Working in local currency and providing a wide range ofrisk-hedging tools

43 OPERATIONAL AND FINANCIAL RESULTS

43 Operational results

47 Financial statements analysis

51 Projects approved in 2007

52 PUBLICATIONS

CONTACTS

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[ 1 ]

A NORTH/SOUTH COMMUNITY OF INVESTORS SERVING DEVELOPMENT

A North/South communityof investors serving development

[ 2 ]


Board of Directors

Chairman

Jean Michel SEVERINO

Vice-Chairman

Michel JACQUIER

Directors

Jean Michel SEVERINOMichel JACQUIERPatrice MOLLIEPierre JACQUETOlivier PEZETRémi GENEVEY

Permanent Representatives

AGENCE FRANÇAISE DE DÉVELOPPEMENT:Jean-Michel DEBRAT

NATIXIS:Jean-Claude GARDETTE

GRAS SAVOYE:Jean-Marc de BOURNONVILLE

COFACE:Maëlia DUFOUR

SUEZ:Micheline BOSSAERT

DEVELOPMENT BANK OF SOUTHERN AFRICA:Admassu TADESSE

BNP PARIBAS:Philippe SECHAUD

CAISSE DES DÉPÔTS ET CONSIGNATIONS:Pascal LAGARDE

DEG:Winfried NAU

Corporate officers

Chairman: Jean-Michel SEVERINOVice-Chairman: Michel JACQUIERChief Executive Officer: Luc RIGOUZZODeputy Chief Executive Officer: Étienne VIARD

Non-voting directors and observers

Statutory non-voting directors

FRENCH MINISTRY OF ECONOMY AND FINANCE:Stéphane CIENIEWSKI

FRENCH MINISTRY OF FOREIGN AFFAIRS:Laurent AMAR

Non-statutory non-voting directors

SOCIÉTÉ GÉNÉRALE:Jean-Louis MATTEI

AGA KHAN FUND FOR ECONOMICDEVELOPMENT (AKFED):Lutaf KASSAM

SOMDIAA: Alexandre VILGRAIN

SOCIÉTÉ IVOIRIENNE DE BANQUE:Christian VALLOIS

Government Commissioner

Daniel BESSON

AFD Works Council representative

Jean-Louis LECOUFFE

Auditors

MAZARS: Guillaume POTEL and Max DONGAR

KPMG: Pascal BROUARD

[ 3 ]


Jean Michel SEVERINO Chairman

ROPARCO has been created in 1977 by AFD (AgenceFrançaise de Développement) on the conviction that theprivate sector should be the main development actorin South economies. With development impacts and

results constantly rising, thirty years later PROPARCO embodiesthe opportunity to finance operations which are economicallyviable, socially equitable, environmentally sustainable andfinancially profitable. Such success shows the initial convictionwas founded. It is now reflected in all AFD Group instrumentsand AFD Group has put “non-sovereign” actions at the core ofits strategy. It uses the private sector as an engine to createwealth, disseminate notions of social and environmentalresponsibility and implement public policies.

PROPARCO’s atypical and ambitious economic and strategicdevelopment model adds further interest to such success. It isbased on:

� unique governance compared with other European partners.PROPARCO’s capital and Board of Directors are open topublic and private partners from the North and South alike;

� a unique approach to time and risk ; PROPARCO focusesexclusively on long-term financings in geographical areas oron counterparts considered too risky by commercial banks;

� a portfolio of projects selected on the basis of their social,environmental and economic impacts.

Yet despite such high development standards and risk-takingprofiles, in 2007 PROPARCO has once again shown that it canprovide shareholders with satisfactory financial returns whichare the catalyst for other private investors. Indeed, PROPARCOends 2007 with a record €598M in commitments and netincome at €23.7M, more than double the FY 2006 figure.

This success has meant AFD, along with the whole Frenchcooperation, has reiterated its support for PROPARCO and itswill to pursue a growth strategy for the company. Thiscommitment consequently led AFD to enter into a underwrittingagreement with PROPARCO, which means the latter can nowinvest in very large-scale operations. It also took the decision toproceed with a sizeable €300M capital increase which weknow at this very time has been highly subscribed by both AFDand a number of public and private partners from the North andSouth alike. This operation will in particular allow PROPARCOto substantially increase its volume of equity investments andstrengthen its resistance to exogenous shocks. It will also providethe opportunity to open its governance authorities to newfinancial and industrial partners from Europe, Africa and theMaghreb and will underpin PROPARCO’s privileged position asa “laboratory” for private sector financing in emerging countries.

PROPARCO’s activity is by nature contracyclical and in 2008tensions on international financial markets will carry boththreats and opportunities as they should enhance both theadditionality of PROPARCO’s activity and its competitiveness.Moreover, following the capital increase PROPARCO should bein a position to face the challenges posed by its growth, inparticular in terms of staff levels and organisation and at thesame time maintain its high standards in terms of social andenvironmental responsibility. Finally, for the whole AFD Group2008 will be the year of the implementation of the FrenchPresidency Initiative in Favour of Africa where PROPARCOshould play a key role by contributing to strengthening AFDGroup’s private sector instruments.

I know I can have complete confidence in PROPARCO’s teamswhich have successfully handled all these positive changes toface increased responsibilities and new challenges ahead.

PChairman’s message

[ 4 ]


Public-private governanceof North/South partners

PROPARCO is characterised by a unique public-privategovernance in comparison with other EuropeanDevelopment Finance Institutions (EDFIs).Indeed, PROPARCO is partly owned by AgenceFrançaise de Développement (AFD) and partly byprivate shareholders from the North and South.This embodies its development mission, carries strong

synergies and means PROPARCO benefits from privateshareholder inputs in terms of governance andstrategic piloting, the expertise and experience of itsAfrican and European partners and support from AFDin terms of backing, commercial network and financialand logistical resources.

These changes are characterised by a considerable increase in international partners and private shareholders fromAfrica and the Maghreb.

Expected changes to PROPARCO’s shareholding in 2008

Capital breakdown prior to2007 capital increase

Likely capital breakdown in 2008

Frenchfinancialinstitutions

Internationalfinancialinstitutions

Investors

AFD14.5 %

10.4 %

5.3 %

69.7 %

Frenchfinancialinstitutions

Internationalfinancialinstitutions

InvestorsAFD

Ethicalfunds andfoundations

26.1 %

11.6 %

4.4 %

57.5 %

0.4 %

[ 5 ]


ROPARCO’s thirtieth anniversary was marked by a recordyear in terms of results, growth in impacts and shareholderconfidence.

The main features of 2007 are: a net income at €23.7M and avolume of commitments at €598M, respectively up 230% and50% on FY 2006, an opening to four emerging countries and asizeable upturn in equity business. In three years PROPARCO hastripled the volume of its operations, in particular due to regainedgrowth in Africa.

PROPARCO’s mission in Africa, where it has 60% of itscommitments, of which 45% in Sub-Saharan Africa, was reaffirmedduring the year. The target is to pursue its readjustment ofallocations for infrastructure, equity and services to the poorest.

PROPARCO ends 2007 with a balance sheet up 4%, despite thesharp depreciation of the dollar which had an impact on 40%of its outstanding amounts, total risk at 1.15 billion euros andnon-performing loans at a record low, i.e. 4.5% of totaloutstanding amounts.

In parallel to these financial results which are well above BusinessPlan estimates, in 2007 PROPARCO continued to systematiseproject impact rating and 37 loan agreements with a totalcofinanced amount of 3.9 billion euros were analysed. Theseassessments showed that PROPARCO financings directly orindirectly created or supported 315 enterprises and 47 000 jobs.They also supported 70 enterprises in their SER (Social andEnvironmental Responsibility) processes, financed access tomicrofinance to 100.000 people, saved 1.8 million tons of CO2and brought mobile phone networks to 22.5 million newsubscribers.

In 2007 PROPARCO also reinforced its core role in the club of theEuropean Development Finance Institutions by signing apartnership agreement with the Netherlands’ FMO based onthe model of the existing agreement between PROPARCO andGermany’s DEG. PROPARCO was also appointed to the Board ofEuropean Financing Partners (EFP), a financing structure forEuropean development financing under the aegis of the EIB.

PROPARCO undertook in-house reforms scheduled in 2007, thefirst was to strengthen its origination efforts with dedicatedagencies in each geographical area of activity and to reinforcethe Portfolio Department with the creation of a new position tocarry out independent fund rating and the inclusion of the“special operation” team.

PROPARCO also enhanced communication thanks to the creationof operational documents, press relations, a revamped website,the deployment of regional websites and a series of films onprojects which will be pursued in 2008.

Several innovative projects illustrate the diversity of PROPARCO’sportfolio: including a subordinated loan guarantee to amicrofinance institution in the Maghreb, financing the constructionof a hydropower plant in Uganda, participating in an investmentfund dedicated to environmental protection projects in Asia andpromoting access to higher education in Lebanon.

All these positive changes bear witness to the soundness andexpertise of PROPARCO’s teams and the accuracy of its financialmodel. However, repeated exposure to emerging countries, thecurrent fragility of financial spheres and, in particular, changesin IFRS accounting standards will probably lead to greatercyclicality in PROPARCO’s results, without however underminingits fundamentals.

In 2008 PROPARCO has therefore reached a turning point in itshistory. The international financial context is difficult, but leavesroom for development finance institutions which are by naturecontra-cyclical. PROPARCO will furthermore be able to rely onrenewed shareholder confidence while its capital will have morethan doubled. It will also strive to come up with an increasingnumber of financial solutions for innovative projects whichcatalyse private investment in developing countries. This will beachieved via enhanced arrangement and syndication capacities.

Its North-South shareholding structure is unique among donorsand EDFIs and reflects the increasingly important role of Southinstitutions in development aid. This will be a trump card forPROPARCO’s growth strategy which is based on the core sectorsof its activity and its long-standing competences: African expertise,private equity investment in mediterranean countries andcombating climate change in Asia.

PLuc RIGOUZZO Chief Executive Officer

2007 results and 2008 outlook

[ 6 ]


Men and womenserving development

PROPARCO’s multidisciplinary teams are recognised as risk-bearing specialists in developing countries, meaning Proparcoalways operates with a constant level of professionalism ingeographical areas ranging from very poor countries to majoremerging countries.

Management

In addition to the Chairman, PROPARCO’s Managementcomprises two corporate officers.

Chief Executive OfficerLuc RIGOUZZO

Deputy Chief Executive OfficerÉtienne VIARD

Investment Department

It is in charge of project assessment, setting up financing andis based on four divisions (Bank and Financial Markets Division,Infrastructure and Mining Division, Corporate Division, PrivateEquity Division) and an international network comprisingseven offices.

DirectorLaurent DEMEY

Bank and Financial Markets DivisionGilles GENRE--GRANDPIERRE

Infrastructure and Mining DivisionJérôme BERTRAND-HARDY

Corporate DivisionStéphanie LANFRANCHI

Private Equity DivisionPascal PIERRA

Credit and Portfolio Department

It issues an independent opinion on allocation requests andis in charge of risk supervision and rating. It also has a workoutfunction and proposes appropriate reschedulings.

DirectorPhilippe BASSERY

Finance and Administration Department

In addition to its traditional functions (setting rates andrepayment schedules, financial forecasts, financial risksupervision and hedging, ALM, management control, rateand margin setting) it negotiates, alongside the Management,with European Development Finance Institutions (EDFIs) andthe EIB and manages European resources.

DirectorThierry LISCIA

Deputy DirectorBrigitte QUERTAINMONT

Legal Department

It provides expert input to the design of financial set-ups andis in charge of drafting legal documents and formalisingsecurities and guarantees negotiated with clients.

DirectorPhilippe LEBOUCQ

A mission:financing sustainable developmentin developing countries via the private sector

[ 7 ]


[ 8 ]


PROPARCO was created in 1977 by Agence Française deDéveloppement (AFD) and was at inception specialised inventure capital. It opened its capital to private shareholdersin 1988. In 1991 PROPARCO became a Financial Institution andraised its capital to FF225M and was then able to financemedium to long-term loans and guarantees and pursueinvestment in private equity. The last capital increase in 2001brought its capital to €142.5M making Proparco a sizeablefinancial institution.

PROPARCO has gradually widened its geographical area toinclude emerging countries and since 2004 has beenstrengthening its equity financing. Today it is the onlyEuropean Development Finance Institution with a governancebased on public and private partners from both the North andSouth.

PROPARCO was created on the conviction that the privatesector has a crucial role to play in developing countries:

� it is the first factor for growth andjob creation and provides a fiscal basefor States to play their role as investorsin the general interest and ensureredistribution,

� it is a cornerstone for environmental,social and governance concerns,

� it can become an intermediary forpublic policy by directly supplyingcertain basic services in social sectors.

PROPARCO’s core mission is to boostprivate investment in developingcountries in favour of sustainabledevelopment and the MillenniumDevelopment Goals.

PROPARCO therefore financestransactions which are economicallyviable, socially equitable, environmentallysustainable and financially profitable.The latter is the key criterion for knock-on effects to other private investors.

PROPARCO’s strategy is closely tied to thestrategic plan of AFD which bases itsprivate sector activity on three coregroups of targets resulting from analysesof stakes and constraints in its countriesof activity:

� targets for economic growth, job creation and to remedymarket mismatches (SMEs, SMIs, financial sectors,infrastructure…),

� development and social targets (infrastructure, microfinance,private social sectors…),

� sustainable development targets (forestry, greenhousegases, environmental procedures, anti-money laundering)and, in particular, reduce “global” negative externalities.

Two additional cross-cutting priorities are:� to promote French expertise and� to work in partnership with other donors.

Bernard Moizo © IRD

[ 9 ]


PROPARCO’s milestones:geographical expansion anddiversification of financial instruments

1977

1991

1996

20012002

20032004

20052006

2007

Creation of Proparco,a venture capital enterprise forthe private sector with a capitalof FF10M

PROPARCObecomes a financialinstitution with acapital of €34.3Mand can financeloans, guarantees andconsulting services

Activities extendedto all African, Caribbeanand Pacific countries,the Maghreb, Cambodia,Vietnam, Lao PDR

Capitalincreasedto€142.5M

Entry of DEG and activities extendedto China, Thailand, Turkey,Jordan and Egypt

Private Equity Department set upOffice opened in Bangkok

Scaled up activity in Asiaand French Overseas Territories

Activities extendedto Brazil, India and Pakistan

Offices opened inNew Delhi, Lagosand Sao Paolo

Launch of AVERROES Finance,the first “fund of funds” in theMediterranean, comanaged byProparco and CDC PME

PROPARCO’s thirty year history has been marked byits widely extended geographical area of activity, therange and sophistication of its products, its humanresources, its financial results and its balance sheet size.

M€ 1991 1999 2007

Total balance sheet 47 496 987

Commitments 71 203 597

Net income 0.3 3.5 23.7

Evolution in PROPARCO’s main financial indicators(1991-2007)

MARTINIQUEBARBADE

GUADELOUPE

MAYOTTE

SEYCHELLES

MAURITUS

REUNION

JAMAICA

AMAPA

SENEGAL

CUBA

PARIS

TUNIS

LAGOS

NAIROBI

JOHANNESBURG

TURQUEY

COMOROS

BURUNDI

RWANDA

ALGERIA

BRAZIL

SUDAN

ETHIOPIA

KENYA

TANZANIA

ANGOLA

MOZAMBIQUE

SOUTH AFRICA

NAMIBIA

DEM. REP.OF CONGO

CENTRALAFRICAN REPUBLIC

OUGANDA

CONGO

CAMEROON

GABON

NIGER

EQUAT. GUINEA

GAMBIEGUINEA-BISSAU

SIERRA LEONE

LIBERIA

CÔTED'IVOIRE

SAO TOME-AND-PRINCIPE

DJIBOUTI

TUNISIA

MAROCCO

MAURITANIA

CAP-VERDE

LIBAN

SINAI

HAITI

BAHAMAS

REP.DOMINICAN

DOMINICA

TRINIDAD-AND-TOBAGO GUINEA

SURINAME

YEMEN

SOMALIA

TCHAD

GHANATOGO

BENIN

BURKINAFASO

MALI

ZAMBIA

MADAGASCAR

GUYANA

SAINT PIERRE& MIQUELON

ZIMBABWE

BOTSWANA

LESOTHO

SWAZILAND

SAO PAULO

EGYPT

JORDAN

NIGERIA

PALESTINIAN TERRITOTIES

[ 10 ]


An extended commercial network

PROPARCO today benefits from over 40 agencies with AFDcovering some 60 countries. It also develops its own networkvia dedicated regional offices in Africa, Latin America and Asia.

In 2007 PROPARCO opened three new offices in Lagos, NewDelhi and Sao Paulo.

AFD intervention area

PROPARCO offices

WALLIS-ET-FUTUNA

NEW CALEDONIA

FRENCH POLYNESIA

S

SUMATRA

VANUATU

INDIA

CAMBODIA

AFGHANISTAN

PAKISTAN

THAILAND

SRI LANKA

CHINA

LAOS

VIETNAM

INDONESIA

BANGKOK

NEW DELHI

BEIJING

[ 11 ]


Southeast AsiaThe Bangkok office covers Cambodia, Indonesia, LaoPDR, Thailand and Vietnam.Antoine Vigier14 F Abdulrahim Place990 Rama IV Road, Silom,Bangkok 10500, ThailandTel: + 662 636 12 35Fax: + 662 636 12 [email protected]

NigeriaThe Lagos office covers Nigeria, Benin and allcountries in the Economic and Monetary Communityof Central Africa.Charles-André Le PapeLagosMelrose Office suitesPhoenix House Plot 26EAbdulrahman OkeneClose Off Ligali Ayorinde Street -Victoria Island - LagosNigeriaTel: + 234 12705740

This new office will focus on financing projects to combatclimate change, preserve biodiversity and combat majorpandemics and will support French corporates in a strategicarea since Brazil, the world’s 10th biggest economy,constitutes the world’s largest biodiversity reserve, is the 5thgreenhouse gas emitter and France’s leading economicpartner in Latin America.

PROPARCO OPENS AN OFFICE IN SAOPAULO IN CHARGE OF OPERATIONS INBRAZIL AND SURINAME.

[ 12 ]


Southern Africa and MadagascarThe Johannesburg office covers South Africa, Angola,Botswana, Lesotho, Malawi, Mozambique, Namibia,Swaziland, Zimbabwe and MadagascarLaurent KleinIronwood HouseBallywoods Office Park29, Ballyclare Drive, Bryanston 2021Johannesbourg, Afrique du SudTel: + 27 11 540 7100Fax: +27 11 540 [email protected]

East AfricaThe Nairobi office covers Kenya, Tanzania andUganda.Ghislain de ValonRoyal Ngao House-Hospital RoadPO Box 45995Nairobi, KenyaTel: (254 20) 271 84 52Fax: (254 20) 271 79 [email protected]

ChinaPaul de la Guérivière7 Floor, Block C, East Lake Villas,35 Dongzhimenwai Avenue,Dongchend District,Beijing 100027ChinaTel: (8610) 84 51 12 00Fax: (8610) 84 51 13 [email protected]

TunisiaEmmanuel HayeImmeuble Miniar – Bloc B,3rd and 4th floor,Rue du Lac d’Ourmia,1053 Les Berges du LacTunis, TunisieTel: 71 861 799Fax: 71 779 [email protected]

BrazilThe Sao Paulo office covers Brazil and Suriname.Christophe BlanchotSao PauloEdificio Parque Cultural PaulistaAvenida Paulista, 37-4° endar01311-902 – Sao Paulo – BrasilTel: + 55 11 22 46 27 91Fax: + 55 11 22 46 27 99

IndiaThe New Delhi office covers India and Pakistan. Jean-Pierre BarralNew Delhi1A Jan PathDelhi 11001IndiaTel + 91 11 23 79 37 47Fax: + 91 11 23 79 37 38

FanceTwo geographical areas are covered by PROPARCOheadquarters in Paris: West Africa and the Mashreq.5, rue Roland-Barthes75598 Paris Cedex 12Tel: +33 1 53 44 37 37Fax: +33 1 53 44 38 38

PROPARCO has transferred its regional office from Doualato Lagos. The office’s mandate remains unchanged: tosupport multisectoral economic development, with a focuson the banking sector, communications infrastructure andthe energy sector in Nigeria, Benin, Cameroon, Gabon, theDemocratic Republic of Congo, Equatorial Guinea, CentralAfrican Republic and Chad. After eight months of activity PROPARCO’s portfolio isestimated at USD80M in Nigeria, a country with hugeprivate sector financing needs.

PROPARCO OPENS AN OFFICE IN L AGOSIN CHARGE OF COVERING PROJECTS INNIGERIA , BENIN AND CEMACCOUNTRIES

proparco-2007-bat2-ANGLAIS:Mise en page 1 9/06/08 12:01 Page 12

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M E A S U R I N G D E V E L O P M E N T I M P A C T S

Measuring development impacts

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Systematic impact measurement

Development institutions, in addition to their role ofproviding financing, strive to verify the effectivenessof their activity and measure the institutional,economic, environmental and social impacts of theprojects they finance.

Since 2006 PROPARCO has been using a systematicproject impact measurement tool. It is used selectivelyprior to any financing and then throughout the projectlife. The GPR (Geschäftspolitishes Projectrating ©) is aninstrument adapted from a tool developed byPROPARCO’s German counterpart, DEG. It is also usedby other European Development Finance Institutions(EDFIs) and harmonises impact measurements madeby European partners.

The tool, using a multidimensional approach, assesses:the economic viability of a project, its developmentimpacts (see below), PROPARCO’s additionalitycompared with commercial banks and the profitabilityof the financing.

Development impacts are the cornerstone for EDFIcriteria in project identification, in particular:

� current public revenue,

� net currency effects,

� employment,

� technology and know-how transfer,

� extension and improvement of basic service supply,

� improvement of performances thanks to privateoperators,

� social effects (health, education, continuoustraining…),

� compliance with environmental standards,

� positive environmental impacts from greenhouse gasmitigation measures, the use of renewable energiesand energy saving.

PROPARCO also looks at a set of sectoral indicators incommon with Agence Française de Développement.

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Profitability vs development impacts

In addition to the individual assessment of the impactsof each project, the GPR© implemented in 2006 makesit possible to classify, analyse and strategically managePROPARCO’s portfolio.

In 2007 PROPARCO carried out an ex-post evaluationon the expected outcomes of the whole 2000-2006project portfolio. The analysis focused on over 150projects with 1.3 billion euros of total commitments(own risk) for a global volume of cofinancedinvestments of some 8.4 billion euros.75% of the assessed projects are implemented inAfrica, 21% in Asia and 4% in the Caribbean.

Development projects� 71% of projects were ranked above the satisfactorythreshold defined in agreement with other EuropeanDevelopment Finance Institutions.

� This ratio rises to 86% of projects if developmentimpacts are isolated. This confirms PROPARCO’s priorityfor development impact criteria in its investment policy,while still ensuring compliance with economic viabilityand profitability for each project.

Compliance with social standards� The social advantages of 35 corporates and 25infrastructure projects were measured. All counterpartscommit to complying with international socialstandards (ILO). The salaries of practically all thecorporates financed are above national averages ordirect sector competitors. Finally, all corporatesfinanced comply with international standards such asWorld Bank guidelines on health and security at work.

Compliance with environmental standards� All recent projects comply with World Bankstandards.

A strong correlation between profitability anddevelopment� The cross–analysis of the four criteriameasured by theGPR tool showed a positive correlation between projectprofitability criteria and development impact criteria. Itidentified a 40% “win–win” rate, i.e. 63 projects.Conversely, the study shows that development impactsfor projects considered low-profit during assessment arenot always good.

Sizeable impacts between 2005 and 2006� 350 start-ups� 60 000 jobs created or secured� 750 000 households gained access to modern energy� 30 million people had improved access to electricity� 6.4million new subscribers tomobile phone networks� 1 200 Mw generated� 3.9 million tons of CO2 saved

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Key 2007 indicatorsImpact measurement forms part of a process tocontribute to development. The impact of projectsfinanced or cofinanced by PROPARCO are first andforemost to be credited to our clients. PROPARCO isin most cases a cofinancier which makes the projectpossible and its contribution matches the percentageof its financing. However, data for 2007 shown belowillustrates the extent to which these impacts areconsiderable.

In 2007 development impacts were analysed for37 loan agreements signed during the year totalling€425M in financial commitments (own risk) and aglobal investment cofinanced volume of some3.9 billion euros.

GUARANTEEING A SUSTAINABLEENVIRONMENTCredit lines and funds dedicated to environmental projectswere financed in 2007 in line with PROPARCO’s aim topromote Global Public Goods in emerging countries as wellas corporate Social and Environmental Responsibility (SER).70 enterprises will be supported in their SER processes thanksto these specialised financings.Moreover, in 2007 PROPARCO contributed to financingelectricity generation projects using renewable energy inAfrica and Pakistan. These projects will reduce CO2 emissionsby 1.8 million tons.

DEVELOPING AND ENHANCING ACCESS TOENERGY SOURCESA major 250MW hydropower dam project in Uganda willgenerate 1 200 GWh per annum at completion. This willraise the country’s energy capacity by 50% for the benefit ofenterprises and the general public.

SCALING UP ACCESS FOR THE POORESTPOPULATIONS TO MEANS OFCOMMUNICATIONIn 2007 and in the telecommunications sector PROPARCOfinanced the development of GSM networks in 7 countriesincluding Malawi, Ghana, Chad and Lao PDR. These networkswill eventually provide access for 22.5 million new subscribers.

SUPPORTING GROWTH AND EMPLOYMENTIN DEVELOPING COUNTRIESThe portfolio of new projects financed or cofinanced byPROPARCO was instrumental in creating or supporting thegrowth of 315 enterprises and creating or securing over 47 000direct or indirect jobs.

MICROFINANCEFinancing for one of the Maghreb’s leading microfinanceinstitutions will give nearly 100 000 people access to financialservices to develop a microenterprise.

CONTRIBUTING TO STATE REVENUE30% of projects signed in 2007 will directly contribute toincreasing revenues and financing, up to 377 million euros, forStates where the projects are implemented.

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2 0 0 7 : A R E C O R D Y E A R F O R P R O P A R C O ’ S A C T I V I T Y

2007: a record yearfor PROPARCO’s activity

2007 was a milestone year for PROPARCO in terms ofboth volume and prospects. The sharp rise incommitments was based on strategic fundamentalsand thus validates choices made over the last twoyears: to target selected areas of expertise, develop new

territories with caution, focus on core mission sectors,consolidate public-private partnerships and placeorigination at the centre of our activity. This policybrought about these rapid changes and will be pursuedand strengthened in 2008.

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Record high levels of activity

Total gross commitments at31 December 2007 reached arecord €598M, including €529on own account and €69M onbehalf of third parties, against€401M in 2006, including€377M on own account, and€216M in 2004. It is the highestever increase recorded byPROPARCO on one year (+47%in total and +36% on ownaccount). Signings have also risensharply to a record €432M, i.e. anincrease in line with the rise incommitments.

A number of factors account for continued growth inPROPARCO’s commitments:

� the growth upturn in Africa which generatesincreased needs in infrastructure, in particular dueto the emergence of Nigeria, Africa’s largest country,whose sound development is a major stake for thecontinent and hence for PROPARCO,

� the opening to new emerging countries with amandate to protect Global Public Goods followinga French government decision in 2006. This had adirect impact on activity as early as 2007 thanks toheavy prospecting (€64M committed as early as2007 in Brazil, India, Indonesia and Pakistan),

� the strengthening of the partnership strategy withother development finance institutions engagedupon three years ago.

The sharp growth in commitments on behalf of thirdparties is also based on deep changes to PROPARCO’sfinancing capacities. Indeed, a subparticipationagreement signed with AFD allows it to use AFD’sbalance sheet to invest much higher amounts. Forinstance, in 2007 this led to a USD60M loan for a damin Uganda and a €50M credit line to a bank in Turkey.

This rise can be seen in all PROPARCO products andsectors. The level of equity commitments rose to arecord €78M with a strong focus on investment fundswhich reach the core of SME fabric. These results bearwitness to the success of the upturn policy for equityinvestment activities launched in 2002-2003.

Moreover, infrastructure financing continued to risewith a 47% share of commitments. Telecom-munications was the main sector of activity, taking over

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Commitments (€M)

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from energy which dominated in 2006, and PROPARCOpursued its policy to support communications networkdevelopment in difficult countries with investments inChad and Lao PDR.

For corporates the year saw a balance between two ofthe main traditional sectors, tourism and agribusiness,with a new project in the education sector in Lebanon.

Drawing on sectoral expertiseand prospecting new territories

PROPARCO pursued its development in its three mainareas of expertise:

� Africa, mainly for infrastructure and financialsectors: 46% of commitments focused on Sub-Saharan Africa, i.e. €330M, with projects in thepoorest countries (Chad, Uganda, Malawi,Madagascar), support to South Africa’s BlackEconomic Empowerment policy and a successfulmove into the continent’s main economy, Nigeria,

� equity investment in the Mediterranean:PROPARCO is a major equity investment player inthis zone and has always supported the teamswhich created this industry. It pursued its marketpolicy in 2007, invested in several funds andcoinvested in Moroccan and Egyptian SMEs in somefunds. PROPARCO and Caisse des Dépôts launched

Averroès II, which follows the launch of the first fundof funds in the region comanaged by bothInstitutions which is now 100% invested,

� climate change in emerging countries: a majorissue for humanity, combating climate change andpromoting renewable energies are at the core ofPROPARCO’s strategy in the major emergingcountries. 2007 marked the deployment of expertisegained over the past four years in China and Thailandto new zones: Pakistan, India, Brazil and Indonesia.

Moreover, PROPARCO is a development institution,hence contracyclical, and must be present in highpolitical risk zones in order to support initialinvestments in fragile States or post-crisis countries.

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This policy was embodied in Lebanon in 2007 with theextension of St. Joseph University and in Côte d’Ivoirewith several equity investments in financial institutions.It will be strengthened from 2008 onwards withincreased marketing in these countries.

Finally, PROPARCO decided to relaunch its activities inthe microfinance sector, thus complementing workcarried out by Agence Française de Développement for

many years and drawing on its expertise. In 2007PROPARCO made equity investments in Morocco,Cambodia and Algeria and will continue to scale theseup in this sector over the coming years.

Strengthening partnerships with public andprivate financial institutions

PROPARCO is at the core of a network of partners,firstly thanks to the public-private and North-Southstructure of its shareholding. This network extends toall development actors or financial players in its areasof activity. More clients are reached through thispolicy and consequently benefit from completefinancing solutions. It also expresses the vocation ofdonors and development finance institutions todisseminate best standards in terms of SER orgovernance. Finally, it recognises deep changes inthe financial landscape of its geographical areaswhere the number of operators has increased andSouth institutions play an increasingly predominantrole.

This partnership policy was therefore strengthened in2007. A cooperation agreement was signed with FMOin May following a similar agreement signed with DEG

in October 2006. Closer ties were established withAfrican finance institutions, the African DevelopmentBank, DBSA in South Africa, BOAD in West Africa: allhave become major players on the continent. Contactswith Nordic bilaterals increased, with the signing inNovember of a first subparticipation cofinancingagreement with Finnfund.

Moreover, PROPARCO is consolidating ties withcommercial banks operating in these zones and wishesto increase its leverage effect by developingsyndication products. An initial project was assessedin Ghana with two subparticipating commercial banks.

Geographically tailored priorities

PROPARCO has always been recognised as an expertin Africa, but has also become a specialist in energyissues in Asia and equity investment in Africa andthe Mediterranean.

PROPARCO has a specific approach in three majorgeographical areas:

� growth and job creation in Africa,

� climate change and biodiversity in major emergingcountries,

� rising equity investment in Mediterranean countries.

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G E O G R A P H I C A L L Y T A I L O R E D P R I O R I T I E S

� 46 268 jobs created or saved

� 11.4 million people connected to phone networks

� 54 million euros contributed annually to Staterevenues

� 1200 GWh generated per annum

� 100 000 people with access to microcredit

KEY FIGURES FOR PROJECTS IN AFRICA SUPPORTEDBY PROPARCO IN 2007:

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Reaffirming the African continentas a priorityBetween 2003 and 2007 average annual growth inAfrica stood at around 6%. Such growth had notbeen seen since national independencies and givesreason for optimism, yet it is not enough to reachpoverty reduction targets since population growthdampens such positive effects.

Support to African growth is more than ever beforea key factor for official development assistance policies.

The private sector is the main engine for this, themain source of job creation, the fiscal base whichallows a State to play its role as a regulator, and anintermediary for public policies which target access forpopulations to basic services.

PROPARCO’s priority objective is to boost privateinvestments on the continent in order to supportgrowth, job creation, poverty reduction and reachthe Millennium Development Goals (MDGs).

In relative terms PROPARCO is one of the mostcommitted European Development Finance Institutionsin Africa. The continent accounted for 60% of itsallocations in 2007 and Sub-Saharan Africa alonemade up 45%.

In order to meet Africa’s development challenges,PROPARCO aims to gradually double its private sectorcommitments on the continent

Loans: geographical breakdown in foreign States (commitments)

SouthernAfrica andIndian Ocean

WestAfrica

Asia,Caribbean

Maghreb andMediterranean Central and

East Africa

28 %22 %

16 %

10 %24 %

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PROPARCO focuses its activity on strengthening sectorswhich support growth and job creation:

� financing corporates (export, regional markets…),

� supporting financial intermediation (local banks,investment funds…),

� strengthening high-performance privateinfrastructure essential for growth (basicinfrastructure, cost-saving infrastructure, logisticaland digital divides…),

� preserving local and global environments,

� supporting the creation of local entrepreneur groups.

In 2007 PROPARCO committed €330M in Africaincluding €60M for corporates, €116M forinfrastructure and €154M for the financial sector.

Uganda is one of the world’s most lagging countries interms of access to electricity with less than 10% of thepopulation connected to the electricity network. Electricitygeneration will have to be practically doubled in order to facedemand which is expected to triple over the next fifteen years.Among projects studied Bujagali was identified as being themost interesting from an economic, environmental andsocial point of view.The project will contribute to making a considerable andsustainable improvement to Uganda’s energy crisis and willlead to the number of households connected being raised bya third over the next ten years.

The project includes the construction of a hydropower plantwith 250 MW of installed capacity on the Nile downstreamfrom Lake Victoria.The project is implemented by BUJAGALI ENERGY LIMITED(BEL) whose shareholding is controlled by the Aga Khan Fundfor Economic Development (AKFED) via its subsidiaryIndustrial Promotion Services (IPS), the US company SitheGlobal Power and the Ugandan government. BEL has a30-year concession, at termination its assets will betransferred to the State for a symbolic US dollar.The total project cost stands at 872 million US dollars. Thetotal amount of the loan allocated by PROPARCO and AFDstands at 72.8 million US dollars and is part of a global682 million US dollar financing in which other developmentinstitutions and European, African and American banks areparticipating.

The Bujagali dam alone will generate almost half of theenergy produced in Uganda at commissioning in 2012. Theelectricity generated will be much less costly than thecurrently used thermal-based energy and will restore economicbalance to Uganda’s energy sector.Over 1 100 direct jobs will be created during the damconstruction phase and BEL will, through taxes, contributeup to USD800M to the State budget during the concessionperiod.The project will reduce CO2 emissions by 1.5 million tons ayear. Finally, the project’s environmental and social impacts,defined in a management plan in compliance withinternational standards, will be relatively limited (run-of-river dam with population relocation limited to85 households).

INCREASING ELECTRICIT Y GENERATIONIN UGANDA

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Equity and investment fundsin Mediterranean countries

The Mediterranean zone covered by PROPARCOincludes ten countries: Morocco, Tunisia, Egypt, Algeria,Jordan, the Palestinian Autonomous Territories, Yemen,Lebanon and Turkey.Economic growth in these countries, at an annualaverage of around 4% between 2001 and 2006, isencouraging but is still not enough to bring about realeconomic take-off which is essential to meetingemployment challenges in the region.Indeed, over a hundred million jobs need to be createdover the next twenty years in order to face hugeactive population growth.SMEs and large corporates often remain focused ontraditional sectors and employment potential in servicesectors still remains widely untapped.Moreover, these economies often remain debt-overhang economies with a limited product range(little equity and/or quasi-equity). Alternativemechanisms to bank financing have been promotedfor ten years now due to the reluctance of banks togrant loans to SMEs in countries in the region.

Equity investment provides one of the best solutionsto this situation as it offers an alternative tooverindebtedness and gives financial solidity toexpanding corporates. It also provides expert technicalassistance, new partnerships, new markets and newtechnologies.

It is also a way for the Mediterranean economy toupgrade to international corporate standards and itboosts local financial systems.

Finally, it can facilitate and promote the handingdown of business leadership to the next generation inthe region’s enterprises.

PROPARCO provides its expertise and financial means.PROPARCO was involved right from the start of theactivity in the early 1990s and was present whenprofessional teams emerged in early 2000. It has alsocontributed to building networks and integratingteams and enterprises, in particular via the AverroèsFinance regional fund of funds which is comanagedwith CDC Enterprises.PROPARCO has also led or been involved in severaltraining and communication actions focusing on theinterest of equity investment and the regulatorychanges required.

In 2007 PROPARCO committed €140M inMediterranean countries, including €29M forcorporates, €20M for infrastructure and €91Mfor the region’s financial sector.

Film « Capital investment in Morocco »www.proparco.fr

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Enhancing energy efficiencyin emerging countriesClimate change, loss of biodiversity and majorpandemics are the main global challenges for theyears to come.

They are issues for public policy on a global scale.

The major emerging countries where activity andgrowth are booming may be the first victims, themain cause and the key to a solution.

China has been the world’s biggest CO2 emitter since2007 with over 6 000 million CO2 equivalent tons

TUNINVEST FINANCE GROUP (TFG, INTEGRA Partners Group),created in 1994, is the biggest private equity investmententerprise in North Africa. It manages nine generalistinvestment funds mainly targeting investment in mediumenterprises in the Maghreb and Sub-Saharan Africa.

Since 1997 the partnership with TFG, via PROPARCO’s director indirect participation in 7 of these funds, has contributedto developing equity investment for small and mediumenterprises in the Maghreb and subsequently in Sub-SaharanAfrica.This partnership is instrumental in creating a considerablefinancial and qualitative leverage effect due to the numberof enterprises financed and the technical support they receive.

TFG, a management company controlled by its teams, has anapproach which involves providing close support to theenterprises where it operates. It is in particular instrumentalin improving governance, strengthening management teams,profit-sharing systems and defining development strategieswhich often include an international side. It is active inmonitoring strategy implementation.

TFG, based in Tunis, Casablanca and Algiers, covers Sub-Saharan Africa via partnership agreements with local teamsand manages a total of over 210 million euros. PROPARCOdirectly participates in 5 of the funds and holds an indirect stakein 3 of them via the Averroès Finance fund of funds.

In the Maghreb alone, the funds managed by TFG Grouphave supported over sixty enterprises in Tunisia, Algeria andMorocco with turnover totalling 650 million euros and 8 400employees. For 1995-2002 the enterprises held by TFG-managed funds have seen an average 45% growth in turnover,a rise in exports topping 100% and a 25% staff increase.

TFG has been working to develop best corporate standards inMaghreb for over fifteen years and directly participates in theirregional integration.

SUPPORTING THE DEVELOPMENT OFNORTH AFRICA’S MAIN PRIVATE EQUIT YPL AYER

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emitted during the year. Mitigating these emissions isa priority in combating climate change on a globalscale.

Brazil, Indonesia and China’s biodiversity is also uniquein the world by its wealth, territorial coverage andecosystem complexity. These resources must besustainably managed.

Finally, the rise and densification of the world’spopulation, and its growing promiscuity with animalspecies in a context of globalised trade, increase therisk of the emergence and spread of new diseases. Thisnew challenge can be faced by improving sanitarypractices.

PROPARCO is today active in Brazil, China, India,Indonesia, Pakistan and Thailand and focuses itsoperations in these countries on promoting GlobalPublic Goods.

This strategy breaks down into five sectors of activityfor PROPARCO:

� energy issues (cleaner electricity generation,renewable energies, gas distribution…),

� support to “model” enterprises and banks in termsof social and/or environmental standards,

� financial intermediation on credit lines allocated toprojects with high social or environmental contentor promoting best practices,

� global and local environment, investment fundsengaged upon SER actions or specialised in financingrenewable energy or energy efficiency projects.

In 2007 almost 70% of PROPARCO’s financialcommitments in major emerging countries focusedon projects to develop clean energies.

The Kyoto Protocol aims to reduce greenhouse gas emissionsby 5% by 2012 (from 1990 levels). Policies implemented in themajor emerging countries, which generate more and more ofsuch emissions, will be decisive in achieving this target.

The ALOE funds operate exclusively in the environmentalsector. Projects are financed either directly in India and Chinaor indirectly via equity investments in European enterpriseswhich are active in Asia in the environmental sector.

PROPARCO has invested €5M in the Green Investment AsiaSustainability Fund I (GIASF). GIASF I will coinvest with theALOE ENVIRONMENT (AEF) II Fund, a French-registered pooledfund in which some thirty investors have subscribed overEUR110M.

AEF II, managed by the ALOE PRIVATE EQUITY team, aims tomake 10 to 15 investments ranging from €10M to €15M. Thetargeted sectors are renewable energies, energy efficiencyand waste recycling and treatment in Asia. In 2007 twoinvestments were approved in India in the sectors of PETbottle recycling and renewable energy generation.

The Fund is instrumental in promoting sustainable developmentin emerging countries by supporting both enterprises whichare pioneers in the environment sector and the implementationof SER practices in such enterprises.

PROMOTING ENVIRONMENTALPROTECTION IN INDIA AND CHINA

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The national grid in Pakistan can only supply half thepopulation in electricity. Without additional capacity the

supply-demand deficit is put at 5 500 MW by 2010.ENGRO CHEMICAL, via a project enterprise “ENGRO ENERGYLTD”, is investing in a power plant producing electricity fromlow BTU gas. BTU gas is a low-calorific-value residual gaswhich is currently burned or ejected into the atmosphere.CO2 emissions are reduced by using this gas.

The project involves constructing, operating and developinga 217 MW gas-fired combined cycle power plant in GhotkiDistrict located in Sindh Province. The power plant will operateusing low BTU gas produced from gas exploitation at theQuadirpur Gas Field during the field’s lifecycle.The energy produced will be sold by ENGRO ENERGY to theState-owned National Transmission and Dispatch Company(NTDC). NTDC is in charge of electricity transport anddistribution in Pakistan.

PROPARCO is participating in the project financing structurewhich totals USD205M.The carbon budget carried out by PROPARCO estimates asubstantial saving of between 15 and 20 million tons of CO2

over a 25-year period.Altogether the project will generate around 120 million USdollars of additional annual tax revenue.

DEVELOPING ACCESS TO ELECTRICIT Y BYMITIGATING C02 EMISSIONS INPAKISTAN

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Supporting growthin France’s Overseas economiesThe private sector plays a key role in the sustainabledevelopment of France’s Overseas economies.PROPARCO is pursuing its direct or indirect financingto boost the competitiveness of French Overseascorporates and enable them to develop their activityin a stable regional context.PROPARCO’s strategy is based on three main axes:

� to underpin economic growth by supporting bankswith a regional vocation in long-term economyfinancing,

� to combat inequalities by contributing to jobcreation via support to the productive sector in the

Overseas Local Authorities (tourism in particular),

� to contribute to preserving the environment byfinancing renewable energy development andinfrastructure projects.

PROPARCO also supports major AFD projects in theseregions.

SOCREDO Bank is French Polynesia’s leadingcommercial bank. The bank fosters economic andsocial development in the Polynesian archipelagoby granting long-term financing to various playersin the local economy. It is particularly active in thesocial housing sector through its range ofpreferential loans to modest households andthrough the financing of enterprises operating inthe sector (construction, social housing). The bank is a long-standing partner of Agence française de Développement, oneof its shareholders alongside the Polynesian government andBRED. In 2005 and 2006 PROPARCO granted two credit linesto SOCREDO to enable it to face a sharp increase in long-termfinancing activity. Indeed, the bank’s long-term lendingactivities are only partly covered by matching deposits. Thenew €20M credit line granted by PROPARCO in 2007 willcontribute to developing several sectors including tourism,pearl farming, fishing and inter-island maritime transport.

SUPPORTING ECONOMIC DEVELOPMENTIN FRENCH POLYNESIA

Integrating sustainable developmentand social and environmental responsibilityin each sector of operations

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SUSTAINABLE DEVELOPMENT: SECTOR-WIDE MAINSTREAMING

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Creating high-performing infrastructureto boost growthEffective and low-cost infrastructure is a coreprerequisite for growth and poverty reduction:ineffective infrastructure is indeed the most citedstumbling block for developing countries. The needtherefore exists to enhance infrastructure in order toattract foreign investment, foster the emergence of alocal corporate fabric and improve living conditions forpopulations, the poorest in particular. PROPARCOfinances projects which give greater access to drinkingwater, energy and means of communication forenterprises and local populations.

PROPARCO also ensures the projects it finances arecompatible with environmental preservation and thesocial promotion of local populations. More specifically,PROPARCO gives priority to projects which fall withinthe framework of the Kyoto Protocol CleanDevelopment Mechanism or renewable energy andenergy efficiency sectors. In emerging countriesPROPARCO focuses on exemplary projects in thesesectors in order to foster development with the highestpossible level of sustainability.

In 2007 PROPARCO committed €222M forprojects financing major basic infrastructure in13 countries.

The tourism sector is an engine for Cambodia’s economy.It is an important source of foreign currency for the countryand has been booming in past years with a GDP share risingfrom 5.4% in 2000 to over 15% in 2005.International airports are core infrastructure for Cambodiafor their capacity to welcome tourists and to develop asector which generates employment, foreign currency andgrowth. Current airport upgrading demonstrates Cambodia’swillingness to open up the country. It also contributes toattracting private investors in the country.

Société Concessionnaire des Aéroports (SCA), the airportconcessionaire, was founded in 1995 to manage PhnomPenh airport. In 2000 it also became in charge of managingSiem Reap airport, which provides access to the Angkortemples, and Sihanoukville airport in 2006.

PROPARCO’s financing includes two facilities: a USD7.5M loanset up in 2007 and a USD10M standby facility that theenterprise can call upon between 2008 and 2010 to coverpossible financing needs resulting from large investments inSihanoukville. These financings will be used to renovateand extend the three airports.The airport infrastructure has a sizeable long-termdevelopment impact as it will catalyse tourism and industrialdevelopment all over the country.

UPGRADING INTERNATIONAL AIRPORTSIN CAMBODIA

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� 22.5 million people connected to phone networks,

� a 50% rise in Uganda’s energy capacity at projectcompletion,

� a 50% rise in access to electric energy in Uganda,

� 1.8 million CO2 equivalent tons saved,

� 376 million euros in annual contributions to the incomeof the States concerned.

KEY FIGURES FROM THEINFRASTRUCTURE DEVELOPMENTPROJECTS FINANCED BY PROPARCOIN 2007

The mobile phone market is booming in developing countries.Its dynamism is based on sharply increasing demand and aglobal reduction in access costs.The development of mobile phone infrastructure is aprerequisite for growth as it contributes to opening upspaces and populations.The sector, besides providing populations with basic services,attracts investors.

In 2007 PROPARCO financed investments for mobile phonenetwork extension and service quality enhancement in fourSub-Saharan African countries and Lao PDR. PROPARCO,by providing reliable long-term financing likely to attract otherinvestors, is instrumental in creating effective and low-costinfrastructure.

A USD25M loan was granted to MILLICOM GHANA, Ghana’ssecond mobile phone operator. With 1.7 million subscribersthe company plays a key role in developing basic telecomservices for populations.

MILLICOM TCHAD, Chad’s second mobile operator, is onthe way to becoming the market leader and has benefitedfrom an €11M loan to cover remote rural areas and continueto provide quality low-cost services.

In Malawi and Uganda PROPARCO is participating infinancing CELTEL’s investment program for up to USD7M. Theprogram targets infrastructure quality enhancement andnetwork extension to currently uncovered rural areas.

Finally, MILLICOM LAO, Lao PDR’s third mobile operatorwith a 14% market share, entered into a USD13.5M loan withPROPARCO for coverage enhancement in the country’s southprovinces. MILLICOM LAO is also working on developingthe marketing aspect of customer services, not yet widespreadin the country’s mobile phone market.

Operators financed by PROPARCO make a direct contributionto improving the economies in which they operate via theirinvestments and tax contributions. These five projects willcontribute to creating or securing 3 600 jobs, connecting overeleven million people to a phone network and will generatean estimated annual €29M contribution to the relevantStates.

MOBILE PHONE SECTOR:OPENING UP TERRITORIES ANDPOPUL ATIONS

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Modernising, deepeningand securing financial markets

In Least Developed Countries the developmentallegitimacy of the banking sector as an engine foreconomic growth is unquestionable. Private sectorgrowth is dependent upon improved efficiency inbanking and financial markets to ensure the bestpossible use of capital and access for enterprises tosuitable medium and long-term financings.

Indeed, in a number of developing countries neitherthe level of savings nor institutional investors arelacking. The problem is that the range of bankingproducts for enterprises is often limited to a fewshort-term products due to a lack of private riskprioritisation and that financial markets, when theyexist, remain shallow. There is therefore limitedallocation of savings to long-term investments which,unlike in developed and emerging countries, oftenaccount for a very small percentage of gross domesticproduct.

In emerging countries, which have a much broaderrange of banking services and where markets play an

increasingly important role in financing the privatesector, the integration of sustainable developmentproblematics (combating climate change in particular)is still in its infancy, but is to become a major concern.

In this context PROPARCO provides a wide range offinancing tools (equity, credit lines in foreign currency,or in local currency in some countries, guaranteesand off-balance sheet instruments) firstly to meet allthe needs of banks and financial institutions indeveloping or emerging economies and, secondly, tocomplement banking intermediation by deepeningfinancial markets.

This range of financing tools not only targets banks’long-term SME financing, it also aims to structure andimprove the performance of a sector which isconsidered to have a sustainable impact on loansupply. Similarly, equity investment is a priority forPROPARCO in particular to facilitate the creation,consolidation and development of emerging bankingor insurance groups and give local banks – whatever

[ 33 ]


their nationality – access to international markets.PROPARCO can also, via trade finance programs,develop guarantee products for foreign trade financingprojects for South financial institutions, in partnershipwith international banks.

Investment financing via financial markets remainsvery limited or is nonexistent in many countries withinPROPARCO’s geographical area, whereas institutionalinvestors and savers seeking short or long-terminvestments cannot find products tailored to theirneeds, with sufficient liquidity or security. PROPARCOconsequently strives to deepen financial markets andincrease their effectiveness by developing off-balancesheet mechanisms to immunise local and internationalplayers against risks where the risk-yield ratio does notcomply with traditional private sector standards. Forinstance, PROPARCO can provide structures to helpraise the number of issuers or operations by issuer, byboosting demand via the creation and securisation ofcollective savings vehicles and insurance products.These financing structures to promote financialmarkets are mainly based on guarantee and creditenhancement tools which PROPARCO has beendeveloping since the 1990s.

In 2007 BMCE Bank, one of Morocco’s leading banks and ashareholder of PROPARCO, took a 35% stake in the Bank ofAfrica Group. PROPARCO is one of Bank of Africa Group’shistoric capital partners. This agreement is a milestone in thedevelopment of the two banking groups and seals theirpan-African ambitions. The Bank of Africa Group, whosecreation dates back to the creation of BOA Mali in the earlyeighties, followed by BOA Benin and the African FinancialHolding 1989 (now BOA Group), is nowadays present in overten countries with a balance sheet totalling 1.5 billion eurosand over 160 branches. PROPARCO has always supported thecapital development of the Group. The majority of theGroup’s shareholders are African based. PROPARCO hasbeen a shareholder and director of the holding company rightfrom its first incorporation and, thanks to its close ties withBMCE Bank, took an active part in the negotiation of thisagreement. The investment aims to bring a reference bankingpartner into BOA Group. The specificity of Bank of AfricaGroup’s shareholding combined with the sound financial baseof BMCE Bank, means a rapid development can be expectedfor both partners all over Africa. BMCE Bank is alreadyactive in other African countries such as Congo-Brazzaville,Senegal, Gabon, Tunisia, soon Algeria and also France andGreat Britain with its merchant bank Medicapital Bank,Spain and Italy. In parallel, at the end of 2007 PROPARCOgranted a €50M subordinated loan to BMCE Bank to helpfinance this specific investment.This alliance seals the creation of a truly African bankinggroup applying the best international standards and linkingup Sub-Saharan Africa, the Maghreb and Europe.

SUPPORTING THE DEVELOPMENTOF A PAN-AFRICANBANKING GROUP

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Participating in investment funds dedicatedto corporate financingThe SME sector is a core sector for the development ofa sustainable and dynamic economic fabric. Theapparent reluctance of banks to grant loans to SMEsin developing countries, or in certain investment sectorsin emerging countries, has led to actions to promotealternative mechanisms to bank financing.

PROPARCO, in parallel to its efforts in favour of bankingsystems and with the same targets of intermediationand to create private sector knock-on effects, acquiresstakes in investment funds dedicated to financingcorporates in expansion.By entrusting fund management to independent localteams intermediation has a dual leverage effect.The first quantitative effect is that PROPARCO financingreaches a sizeable number of local enterprises seekingalternative resources to debt in order to finance theirdevelopment. In 2007 the investment funds wherePROPARCO acquired stakes plan to invest in over 100enterprises and impact 10 000 jobs.The second qualitative effect is the direct involvementof these highly-skilled teams in the management offinanced enterprises. This entails making a selectionwithin the local corporate fabric and graduallyupgrading management practices and social andenvironmental standards which are essential for theseenterprises to open to regional and internationalmarkets.

The presence of PROPARCO and developmentinstitutions in these funds has a knock-on effect forother investors and catalyses private funds. PROPARCOalso supports the funds by setting up procedures foranti-money laundering and combating the financingof terrorism.

PROPARCO is supporting the I&P Management (Indian Ocean) teamfor the second time. The I&P Management team currently manages twoinvestment funds dedicated to financing enterprises in Mauritius,Madagascar, Comoros and the Seychelles. PROPARCO participatesdirectly in these funds.

Since beginning its activity, the I&P Management team has assessedover 150 projects in the region. Its strategy is based on totallyindependent investment choices in terms of reference equity investmentswhich gives the fund real leeway. It also actively supports themanagement of holding companies.

The first €10M investment fund launched in 2003 (I&P Capital) is now100% invested. It has made 7 investments in the region and satisfactoryprofitability is expected.Such a sound initial experience has enabled the team to raise a higheramount of investment for the second fund I&P Capital (II), with 30%of the shareholding financed by the private sector.

PROPARCO subscribed up to €5M in this second €30M fund. I&PCapital (II) aims to invest in existing medium enterprises, for instancecandidates for capital development or transfer operations.The investment activity of both funds has a dual impact on growth andthe dynamism of the region’s economy by directly impacting employmentand mobilising local and international private coinvestors.

MOBIL IS ING PRODUCTIVE INVESTMENT INTHE INDIAN OCEAN ARCHIPEL AGOS

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This instrument meets two additional objectives: todevelop productive and job-creating activity in Africaand the Mediterranean and also to focus investmentson sectors which contribute to protecting biodiversityand combating climate change in major emergingcountries.

PROPARCO is investing €2M along with AVERROES finance in the Capital North AfricaVenture Fund (CNAV). CNAV is managed by the Capital Invest team which is based inMorocco and already manages the Capital Morocco fund.

The fund has already reached EUR36.6M and aims to finance medium enterprise equity.These enterprises are essential to Morocco’s development and economic transition, inparticular in sectors such as agribusiness, chemicals, pharmaceuticals, specialised retailingand services to enterprises and the general public. Investments will also be possible in Algeriaand Tunisia.

The fund specifically targets equity transfer or development capital operations.

STRENGTHENING MEDIUM ENTERPRISESIN THE MAGHREB

Supporting productive and service sectorsPROPARCO provides long-term resources which matchthe lifecycle of financed assets and are often lacking onlocal banking markets. PROPARCO strives to financeinvestments by large andmedium enterprises seeking todevelop their industrial equipment, subsidiaries underrestructuring and requiring modernisation investments,or borrowers diversifying their activity in order to faceincreased competition.

These financings are allocated either in foreign currencyfor enterprises with export income or in local currencyvia guarantees.

The main traditional sectors of activity are: plantationsand primary agribusinesses, livestock farming and sea-product packaging, themodernisation and expansion ofheavy industries, transportation, education and thetourism industry.

These projects must contribute to disseminating andpromoting Social and Environmental Responsibility, inparticular via the systematic integration of environmentalprotection, biodiversity preservation and enhancedcorporate governance.

Saint Joseph University in Lebanon is a nonprofit-making scientific and cultural privateestablishment with a public mission for highereducation and research. In this fragile countryit fosters greater access to higher education formodest social categories. Almost 10 000students attends the University.

Saint Joseph University holds and manages 15faculties, 23 institutes, a school of engineering,four university campuses in Beirut and threeregional university centres covering a largepart of Lebanon.

The University has engaged upon an extensionand modernisation process which includes thecreation of a Campus for Innovation, Economyand Sport. The new campus will house: a medicalresearch unit, a modern sports centre, new

reception capacities for the Faculty of Economicsand new living areas for University students andstaff. The new facilities will be housed in thesame building and will have the capacity toreceive almost a thousand students, professorsand researchers.

In a difficult context for the country, PROPARCOis granting the University a long-term loan,which would not be available in the Lebanesebanking market, and is thus making the projectpossible.AFD is also participating in financing thisextension.All in all, the AFD Group, by financing almost30% of the project, is supporting Saint JosephUniversity in a modernisation process which willconfirm its position as a university of referencein Lebanon.

PROMOTING ACCESS TO HIGHER EDUCATIONIN LEBANON


The demand for construction materials inSenegal, boosted by a boomingconstruction and public works sector andannual urban growth at 4%, rises everyyear.

Ciments du Sahel (CDS) was founded in1999 by a private Senegalese group withsupport from major donors, in order tomeet rising demands for cement from thelocal market. Five years later, CDS’sbusiness plan was to triple its cementproduction capacity to reach 3 milliontons a year. The total project cost standsat €162M and includes the constructionof a second kiln and two additionalgrinding units.

PROPARCO is contributing €20M to thefinancing structure with an additional€1.2M financed through EFP, the EuropeanDevelopment Finance Institutions’investment vehicle.

Since inception CDS has committed to avoluntarist social and environmentalstrategy and has deployed high-leveltechnology which goes beyond the localand international environmental standardsin force. A sizeable portion of investments

is devoted to reducing dust and oxidedischarge, groundwater and rainwatermanagement, waste management and toimproving living conditions on theproduction site and in surrounding villages.

The socioeconomic impact is considerablefor Senegal. In addition to the positiveeffect on the local and subregional marketsdue to improved product quality andexport competitiveness, the project willalso contribute to creating 200 direct jobsand 800 indirect jobs.

EXTENDING A CEMENTPL ANT IN KIRENE,SENEGAL : A MODELENVIRONMENTAL PROCESS

Scaling up projects contributing to corporateSocial and Environmental Responsibility

PROPARCO, having enhanced its own practices in thissector (environmental assessment of projects, anti-money laundering, corporate governance…), aims tosupport its clients in Social and EnvironmentalResponsibility upgrading by focusing on eight of itscomponents: the integration of local environmentalconstraints, the fight against climate change,biodiversity protection, compliance with social rights,access to education and health, the fight againstfinancial crime and improving corporate governance.

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Tailoring and extending our rangeof financial products

� access to long term financings,� hedging or mitigation for certain risks, in particular

political,� tailored solutions to specific problematics in

developing countries.

PROPARCO is positioned on risk areas with the highestmarket flaws. It must therefore be able to provide arange of financing instruments to meet three maintypes of needs expressed by private enterprises willingto invest in emerging countries:

T A I L O R I N G A N D E X T E N D I N G O U R R A N G E O F F I N A N C I A L P R O D U C T S

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Strengthening corporate equity

PROPARCO, via its equity and quasi-equity investmentsand priority exit strategies, directly contributes to thedevelopment of private enterprises and boostingfinancial markets. PROPARCO is either active via equityinvestments in investment funds or via direct equityinvestments in enterprises or financial institutions.

PROPARCO provides support via equity and quasi-equity investments: capital provision, shareholdercurrent accounts, convertible bonds, participativeloans, subordinated loans. These direct investmentsmainly, but not exclusively, concern financialinstitutions and corporates with regional vocations.

PROPARCO always acquires minority investment stakeswhich are destined to be transferred to othershareholders, or to the financial market in the case ofnegotiable securities, after a 5 to 7 year support periodwhen the enterprise has reached a sustainable level ofmaturity.

PROPARCO, with the objective of intermediation andto create private sector knock-on effects, also acquiresstakes in investment funds. The resulting leverageeffect means PROPARCO can contribute to financinglocal small and medium enterprises. PROPARCO istherefore a key player in establishing the private

Extending the rangeof long term financing

Repayment indexed on raw materials

EDFI package

Syndication

Participative loans

(rates indexed on results)

LT loans (incl. for 3rd parties)Higher Volumes

EquityLocal currency

Access to Long term resources

Develop guaranteesand

risk hedging tools

Financialengineering

for development� � �

� � �Risk sharing/hedging Tailored solutions

Extending the range of financing

ARIZIssue guarantee

Subparticipation credit lineLocal currency guarantee

DIRECT SUPPORTTO THE DEVELOPMENTOF AN EGYPTIAN COMPANY

ITWorx is Egypt’s main software developer and informaticsservice provider. The company is also present in Saudi Arabia,the United Arab Emirates and the USA.

A Euromena-led consortium acquired 79% of ITWorx in2007. The Euromena fund, VC Bank and PROPARCO wereamongst the financiers. With this investment, PROPARCO willwork with other investors to consolidate the enterprise’sinternal structures and finance its international development.In particular, the acquisition of ITWorx should mean theenterprise will be able to conquer new markets in the PersianGulf, Europe and the USA, develop new products and attractnew talent.

ITWorx will continue to contribute to creating skilledemployment by recruiting 300 engineers from 2007-2010.It therefore ensures young qualified graduates are bothtrained and recruited. With this strategy, the companysupports the Egyptian government’s policy for the IT andinformation technologies sectors which aims to make Egypta regional hub for IT services and thus contribute to reducingthe digital divide between North and South countries. Moregenerally, the development of ITWorx contributes to theeconomic dynamism of the region by diversifying productionstructures towards export activities and services with highadded value.

equity investment industry in Africa and the Maghrebby promoting the creation of local teams, some ofwhich have today become continental players.

PROPARCO generally invests in multi-country fundswhich are sectoral generalists in order to diversifyrisk. They generally invest in enterprises which havealready achieved a certain level of maturity.

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DEVELOPING LONG-TERM INVESTMENTFINANCING IN NIGERIA

Nigeria is one of Africa’s most dynamic economies yetavailable long-term resources for the local private sectorremain limited.

The Nigerian authorities have been extremely successful inrestructuring the country’s banking sector. One of theconsequences is that the number of banks has fallen from80 to 24 over the past four years. Nigerian banks havebecome influential players all over the African continentdespite remaining dependent on long-term external foreigncurrency resources to finance local investments.

In this context, PROPARCO granted a 25 million US dollarseven year credit line to ZENITH Bank, one of the country’sleading banks. The facility, in hard currency, will mainlyfinance investments made by Nigerian exporting enterprises.

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Providing loans tailored to each project

The focus for lending activity is on strengtheninginfrastructure, both physical (energy, telecoms,transportation) and financial (banks), and projectfinancing in industry and services which create highemployment or are structuring for a region(agribusinesses and tourism in particular). Volumesallocated for the Infrastructure and Mining sectorand Banks and Financial Markets sector roserespectively from €116M in 2006 to €222M in 2007and from €72M in 2006 to €181M in 2007.

In 2007 PROPARCO increased its ability to provideloans thanks to a subparticipation agreement signedwith AFD. PROPARCO is now able to provide loans foramounts between €5M and €100M by using AFDbalance sheet resources.

PROPARCO has a wide range of medium and long-termloans:

� senior loans,� junior loans,� mezzanine loans,� subordinated loans.

These loans may be denominated, as the case may be,in euros, dollars or certain local currencies such as theSouth African rand. They may have maturities whichreach between fifteen and twenty years, with a capitalrepayment grace period where appropriate.

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Loans are tailored to the environment and needs ofPROPARCO’s clients:

� direct loans to enterprises can be combined withbank or real guarantees or rights of limited recourse,

� project loans are generally made in cofinancingwith other bilateral or multilateral financialinstitutions,

� loans to banking establishments are tailored tomarket needs and the specific request of theestablishment: credit lines earmarked for specificprojects or for refinancing making it possible toextend the average maturity of bank resources andtherefore develop its medium-term loan activity.

Moreover, PROPARCO uses financial engineering toolsto set up financial solutions tailored to the mainproblematics of under-development.

In addition to more traditional participative orsubordinated loans, other examples of PROPARCO’sloans include loans with margins partly indexed onresults, loans in terms of Social and Environmentalresponsibility, or loans with debt service indexed on rawmaterial rates.

Working in local currency and providing a widerange of risk- hedging tools

A large number of projects require financing in localcurrency. PROPARCO meets these needs via guaranteesor direct loans in local currency.

PROPARCO, through its signature, provides a guaranteeof solvency and facilitates resource mobilisation in localcurrencies by private sector borrowers (banks or privateenterprises), by guaranteeing subscribers therepayment in capital and interest of the relevantloans. In doing so, PROPARCO makes it possible toreduce exchange risks and sometimes country risks:

� bond guarantee: PROPARCO provides a guarantee

to savers (institutional investors or private individuals)which lend to a bank issuing borrowings to refinanceitself, or to an enterprise seeking resources to investin a specific project,� interbank loan guarantee: PROPARCO guaranteesperformance on loans that banks with liquidities canmake to other institutions to finance private sectorenterprises,� local currency guarantee: PROPARCO guaranteesperformance on loans granted in local currency bybanks to industrial and commercial enterprises tofinance their productive investment programs,

most modest populations withoutaccess to traditional banking services,in particular women, and has thuscontributed to creating 120 000 jobs.In 2007, in order to meet growingdemand for its products, theassociation strengthened its capitalvia a 100 million dirham (€12.5M)subordinate loan contracted from theSociété Générale Marocaine deBanques with a guarantee fromPROPARCO.

Al Amana will now be in a betterposition to pursue its diversificationpolicy for financial services. The

association is in particular considering developing ruralsolidarity microcredit, individual loans, housing loans andloans to support very small enterprise start-ups. This includessupporting client capacity building via training inmanagement and marketing.

SUPPORTING MICROCREDITIN MOROCCO

Al Amana is one of Morocco’s leading microcreditassociations. Since its creation in 1997, it has granted 1.5million loans totalling 6.7 billion dirhams (€610M) to the

[ 42 ]


� liquidity guarantee for mutual funds, investmentfunds and local savings mobilisation funds: PROPARCOprovides a liquidity guarantee for the various long-termresource mobilisation instruments to financeproductive investment which directly contribute toactivating financial markets.

PROPARCO’s range of loans, in particular loans withrepayments indexed on borrower cash flows oroperational results or loans in local currency, alsocompletes its range of guarantees, in particular forexchange risk-hedging.

Moreover, in 2007 PROPARCO developed direct loansin local currency. In the CFA zone this is provided viaadapted resources. In other zones PROPARCO is ableto use the TCX multi-donor initiative, a counterpartfund whereby currency swaps can be offered incountries where financial markets are not yet deepenough to offer this type of product long-term.

Film « Microfinance in Morocco »www.proparco.fr

Operational and financial results

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O P E R A T I O N A L A N D F I N A N C I A L R E S U L T S

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Investment approvals and disinvestments

Seventeen equity investments were approved in 2007, thesame figure as in 2006, accounting for an investment volumeof €78M, i.e. an average of €4.6M per operation.

Nine direct investments were approved in 2007 totalling€26.9M (twelve in 2006), in particular in a bank and insurancecompany in Côte d’Ivoire, microfinance institutions inCambodia and Algeria and an agribusiness in Madagascar.

Eight equity investments were made in investment funds in2007 against five in 2006.

In 2007 investments (approved in 2007 or prior to 2007)were made in five investment funds, two financial companies,a bank, an IT company and a water and wastewater company.

Equity portfolio structure

At 31 December 2007 the gross value of PROPARCO’s equityportfolio stood at €135.2M (including operations on behalfof third parties) and included 79 shareholdings in ten bankingestablishments, thirty-seven investment funds, sixteen financialestablishments or insurance companies, twelve industrial orcommercial enterprises and four infrastructure and miningenterprises. Total provisions for equity investments reached€5.44M, i.e. 4% of the gross portfolio and 5.72% of paid-upinvestments excluding investments made on behalf of thirdparties.

Sectoral and geographical breakdown

Paid-up capital, including on behalf of third parties, stood at€95.7M at 31 December 2007 against €68.1M at 31 December2006.

E Q U I T Y A C T I V I T Y

Equity investments: sectoral breakdown (outstanding amounts)

26 %

Financial sector

Corporates

Infrastructureand mining

Investment funds

18 %

13 %

43 %

Central andSouthern Africaand Indian Ocean

West AfricaAsiaOverseas

France

Mediterranean

Multi-country

30 %

26 %

15 %

11 %13 %

5 %

In FY 2007 PROPARCO’s total commitments in equity investments, loans and guarantees reached €597.9M, up 49% on2006.

Offer range (in % of approved amounts)

13 %

EquityGuarantees

Loans

9 %

78 %

Offer range (in % of approved transactions)

Loans

Guarantees Equity

34 %

58 %

8 %

Operational results

Equity investments: geographical breakdown(outstanding amounts)

and stood at €61.5M against €41.9M in 2006. Due to highertotal commitment levels in 2007, the percentage of financingallocated in this sector stood at 13.2% compared with 14.8%in 2006.

Approvals and disbursements

Twenty-nine loans were approved during FY 2007 amountingto €464.2M in gross approvals, i.e. an average €16M pertransaction. Total disbursements stood at €186.5M.

Sectoral breakdown

The percentage of loans granted to banking establishmentsstood at 39.0% against 41.9% in 2006. The amount ofcommitments in this sector (€180.8M) included €40M offinancing granted to banking establishments in FrenchOverseas Territories.

Financing committed in the infrastructure and mining sectorrose sharply: €221.9M against €122.9M in 2006, i.e. 47.8%against 43.3% in 2006.

Commitments in the corporate sector in 2007 also rose sharply

[ 45 ]


Geographical breakdown

Commitments in foreign countries covered twenty-threecountries, the largest being Turkey (€80M), Nigeria (€54.6M),Ghana (€39.1M), Indonesia (€37.3M) and Kenya (€26.1M).Moreover, PROPARCO granted three financings to FrenchOverseas Territories French Polynesia (€20M), New Caledonia(€20M) and Reunion (€1.7M).

Sub-Saharan Africa, PROPARCO’s traditional activity area,remained the main sector for new activity with 48.5% in2007. The most important operations in this region wereinfrastructure financing in Ghana and corporate financing inKenya.

L E N D I N G O P E R A T I O N S

Loans: sectoral breakdown (approvals)

Financial sector

Corporates

Infrastructure and mining

13 % 39 %

48 %

Loans: sectoral breakdown (approvals) Loans: sectoral breakdown (foreign countries approvals)

Southern Africa and Indian Ocean

West Africa

Asia, Caribbean

Overseas France

Maghreb and Mediterranean

Central and East Africa

25 %

9 %

9 %

20 %

15 % 22 % Southern Africa and Indian Ocea

West Africa

Asia, Caribbean

Maghreb and Mediterranean Central and

East Africa

28 % 22 %

16 %

10 % 24 %

proparco-2007-bat2-ANGLAIS:Mise en page 1 9/06/08 8:40 Page 45

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Geographical breakdown

Outstanding loans were equally split between PROPARCO’sgeographical areas, excluding French Overseas Territories. Theeight largest foreign countries for outstanding loans were, in

descending order: Turkey, Tunisia, South Africa, China, Ghana,Mozambique, Nigeria and Vietnam, making up 42.9% of totaloutstanding amounts

Loans: geographical breakdown (outstanding amounts)


WestAfrica

Asia andCaribbean

Overseas France

Mediterranean

Centraland EastAfrica

16 %

11 %

10 %17 %

21 %

25 %


WestAfrica

Asia andCaribbean

Mediterranean Central andEast Africa

20 %

31 %

14 %

13 %

22 %

(4) Outstanding amounts do not include accrued interest or loans on behalf of third parties.

Sectoral breakdown

Gross outstanding loans (4) at 31 December 2007 totalled€736.5M (€706.6M at year end 2006) with 57.2% for loansto banking establishments and 42.8% to non-financialcorporates.

Outstanding amounts from banking establishments weremade up of 162 credit lines granted to 50 clients for a totalof €421.3M at 31 December 2007 (€379.3M at year end2006). The remaining outstanding amounts totalled €315.2M(€327.3M at year end 2006) broken down into theinfrastructure and mining sector (€219.9M) and corporates(€95.3M). It was made up of 79 loans granted to 64 clients.

Outstanding loans as at 31 December 2007

Outstanding amounts in foreign countries, excluding FrenchOverseas Territories, stood at €286.5M at 31 December 2007:infrastructure and mining clients accounted for €202.0Mand corporate clients €92.5M.

Loans: sectoral breakdown (outstanding amounts)

Financialclients

Corporates


30 %

13 %

57 %

Financialclients

Corporates


35 %

16 %

49 %

Loans: sectoral breakdown(foreign countries outstanding amounts)

Loans: geographical breakdown(foreign countries outstanding amounts)

The geographical breakdown shows that 9.1% of guaranteeswere issued in West Africa, 52.6% in Central and East Africa,14.5% in Asia, 11.9% in the Mediterranean zone, 5.2% inFrench Overseas Local Authorities and 6.7% were Multi-country.

Four project guarantees were approved in 2007 for a totalcommitment level of €55.7M against €57.2M in 2006.

Guarantees issued in 2007 totalled €7.6M against €12.9Min 2006.

PROPARCO’s guarantee commitments included thirty-fiveoperations totalling €44.9M and break down into 37% forbanking establishments and 63% for non-financial clients.

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The 2007 balance sheet rose from €950.2M to €987.5Mcompared with 31 December 2006, i.e. a 4% rise. This increasereflects various factors:

� the rise in loans to banking establishments (from €382.7Mat year end 2006 to €425.1M at year end 2007) and the fallin loans to corporates (from €340.2M to €319.7M),

� the rise in the equity portfolio from €109.5M at year end2006 to €135.2M at year end 2007 and the 9.6% fall inPROPARCO’s short and long-term treasury.

In constant dollars at 31 December 2006 the balance sheetwould have risen by 7.8%.

In view of the convergence of French and IFRS standards, andto implement Group standards, PROPARCO made a provisionfor collective risks at 31 December 2007. It was estimated onthe basis of an analysis of all types of historic disasters onhomogeneous assets by sector and type of country which defacto include disasters for country risks.

Net banking income reached €34.7M, up 29.4% on 2006(€26.8M).Gross operating income stood at €21.2M at 31 December2007, up 38% on 2006 (€15.4M).The cost of risk is again this year in net provision for €0.2Magainst €1.1M in 2006.The effects of the change in estimation relative to the provisionfor collective risk have been carried by an exceptional expenseof €10.8M corresponding to the allocation of the provision

at 1 January 2007 and a €1.0M allocation corresponding tothe net variation in risk in 2007. A recovery of funds forgeneral banking risks (FGBR) was made for a matching amountand this allocation has no impact on the net result.The net result for the financial year stands at €23.7M against€10.3M in 2006.

G U A R A N T E E S

B A L A N C E S H E E T

Commitments

Financing and guarantee commitments reached €219.7Mat the end of the financial year (against €205.5M in 2006).Financing commitments which correspond to undisbursedamounts on agreements signed reached €174.8M (against€163.7M at year end 2006). Commitments were dividedbetween banking establishments (40%) and other non-financial companies (60%). They do not include provision forany doubtful outstanding loans.Outstanding guarantees made by PROPARCO stood at €44.9Magainst €71.8M at year end 2006.

Commitments received

Financing commitments firstly from AFD and EIB and, secondly,guarantee commitments from other banking establishmentsto support loan production, respectively totalled €196.5M and€545.7M against €237.4M and €638.1M at year end 2006.

O F F B A L A N C E S H E E T

I N C O M E S T A T E M E N T

Financial Statements Analysis

Balance sheet assets as at 31 December 2007 (thousands of Euros)

ASSETS 31/12/2007 31/12/2006

RECEIVABLES FROM FINANCIAL INSTITUTIONS

SHORT-TERM 27 359 25 195related parties 27 182 24 803on behalf of third parties 177 392

LONG-TERM 525 341 498 826related parties 100 276 116 180

TRANSACTIONS WITH NON-FINANCIAL 302 098 318 892on behalf of third parties 386 9 233

INVESTMENTS AND OTHER LONG TERM SECURITIES 129 744 104 766on behalf of third parties 641 845

INTANGIBLE ASSETS 9 19

PROPERTY, PLANT AND EQUIPMENT 49 1

OTHER ASSETS 1 435 1 320related parties 0 0

PREPAYMENTS AND ACCRUED INCOME 1 427 1 195related parties 70 69

TOTAL ASSETS 987 462 950 214

OFF-BALANCE SHEET 31/12/2007 31/12/2006

FINANCING COMMITMENTS 174 770 163 655in favour of financial institutions 69 416 98 366in favour of non-financial institutions 105 354 65 289

ENGAGEMENTS DE GARANTIE 44 915 41 864in favour of financial institutions 16 600 9 154in favour of non-financial institutions 28 315 32 710

TOTAL COMMITMENTS GIVEN 219 685 205 519

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LIABILITIES 31/12/2007 31/12/2006

BORROWINGS OWED TO FINANCIAL INSTITUTIONS

SHORT-TERM 0 1 571related parties 0 1 571

LONG-TERM 723 133 693 016related parties 712 226 676 582

OTHER LIABILITIES 43 584 52 012on behalf of third parties 1 189 10 457

PREPAYMENTS AND ACCRUED INCOME 3 376 4 637related parties 1 256 2 743

PROVISIONS FOR CONTINGENCIES AND LOSSES 18 981 7 923

FUND FOR GENERAL BANKING RISKS (FGBR) 3 993 15 787

EQUITY EXCLUDING FGBR 194 395 175 269

Capital subscribed 142 560 142 560

Legal reserve 3 005 2 489

Other reserve 6 160 6 160

Special reserve for long term capital gains 0 0

Retained earnings 18 944 13 759

Income for the year 23 726 10 301

TOTAL LIABILITIES 987 462 950 214

OFF-BALANCE SHEET 31/12/2007 31/12/2006

FINANCING COMMITMENTS 196 546 237 364received from financial institutions 196 546 237 364related parties 191 546 232 364

GUARANTEE COMMITMENTS 545 744 638 058received from financial institutions 545 744 638 058related parties 468 640 540 942

TOTAL COMMITMENTS RECEIVED 742 290 875 422

Balance sheet liabilities as at 31 December 2007 (thousands of Euros)

[ 49 ]


INCOME STATEMENT 31/12/2007 31/12/2006

INTÉRÊTS ET PRODUITS ASSIMILÉSFINANCIAL INSTITUTIONS 29 676 27 140related parties 5 795 5 961ON TRANSACTIONS WITH NON-FINANCIAL INSTITUTIONS 24 594 22 983ON BONDS AND OTHER FIXED INCOME SECURITIES 0 -1

INTEREST AND SIMILAR CHARGESFINANCIAL INSTITUTIONS -31 891 -29 850related parties -31 286 -29 063

INCOME FROM VARIABLE INCOME SECURITIES 8 716 2 915

FEE INCOME 2 745 2 368

FEE EXPENSE -302 -138

OTHER BANKING OPERATING INCOME ITEMS 1 208 1 435related parties 761

OTHER BANKING OPERATING EXPENSE ITEMS -5 -4

NET BANKING INCOME 34 741 26 848

OTHER ADMINISTRATIVE EXPENSES -13 533 -11 425related parties -10 424 -9 449

ALLOCATION TO DEPRECIATION & AMORTISATION -14 -10

GROSS OPERATING INCOME 21 194 15 413

COST OF RISK -178 -1 114

OPERATING INCOME 21 016 14 299

GAINS AND LOSSES ON PROPERTY AND EQUIPMENTGAINS 9 211 748LOSSES

INCOME FROM ORDINARY ACTIVITIES BEFORE TAX 30 227 15 047

ALLOCATIONS/RECOVERIES OF FGBR 11 794 0

EXCEPTIONAL ITEMSEXCEPTIONAL REVENUE 21 0EXCEPTIONAL EXPENSES -10 777 -42

CORPORATE INCOME TAX -7 539 -4 704

NET INCOME 23 726 10 301

Income statement as at 31 December 2007 (thousands of Euros)

[ 50 ]


[ 51 ]


Projects approved in 2007Southeast Asia and ChinaPakistan � $27.4M granted to a natural gas exploitation andelectricity generation enterprise.�$10Mequity investment in aninvestment fund aiming to develop clean energies and SMEs.

Cambodia � €1.6M equity investment and $4M credit lineto a microfinance institution.

China � $10M loan granted to a poultry raising enterprisefor farm extension. � €5M equity investment in an investmentfund.

India � $10M equity investment in an investment funddedicated to financing infrastructure.Indonesia � $50M loan to finance the extension of ageothermal power plant.

Lao PDR � $13.5M loan to a mobile phone operator for theextension of its network in the country.

Vietnam � €10M equity investment in an investment funddedicated to financing enterprises.

Multi-country � $5M equity investment in an investmentfund dedicated to financing environmental protection in theregion.

Indian OceanMadagascar � €2.9M granted for the development of ashrimp farm � €2M equity investment in the capital of anagro-industrial enterprise and a guarantee for a €3M loangranted to this enterprise by local banks.

Other countriesBrazil � $15M loan guarantee granted to a local bank.

Sainte Lucie � Loan to a mobile phone operator to developthe network on the island.

French Overseas Local AuthoritiesNew Caledonia � €20M credit line to a local bank.

French Polynesia � €20M credit line to the archipelago’smain development bank.

Réunion � €1.7M granted to a wind energy promoter on theisland.

West AfricaCôte d’Ivoire � €6.6M investment in FCFA in the capital ofan Ivorian bank within the framework of State disengagement

Ghana � Two loans granted to a mobile phone operator fora total of $25M. � $5M credit line to a financial institutiondedicated to financing local enterprises.

Nigeria � Three credit lines totalling $75M granted to threelocal banks for enterprise financing.

Multi-country � €20M credit line to a regional Africandevelopment bank. � €5M equity investment in the capitalof a West African insurance player.

Central and East AfricaCongo � FCFA8.2bn loan in favour of a mobile phoneoperator.

Kenya � $35M loan to a sugar producing enterprise.

Tanzania � $25M loan to a Tanzanian mobile phoneoperator.

Chad � $15M loan to a Chadian mobile phone operator.

Multi-country � €30M guarantee financing granted to aleasing enterprise for its refinancing from banks and insurancecompanies.

Southern AfricaSouth Africa� €10M loan to a BEE fund infrastructure sectorplayer.

Multi-country � $40M to a regional mobile phone operatorfor network development.

Maghreb and MediterraneanAlgeria � €1.6M equity investment in the capital of amicrofinance institution.

Egypt � €17M loan granted to a tourism sector group tofinance a hotel resort on the Red Sea. � $5.2M equityinvestment in the capital of a new technologies sectorenterprise.Lebanon � $8M loan granted to a university to finance itsextension.

Morocco � MAD14M equity investment in the capital of aprivate higher education group. � Guarantee for a €12.5Msubordinated loan granted by a local bank to the country’smain microfinance institution.

Turkey � Two credit lines totalling€60M granted to a localbank to finance enterprises and the development of studentloans. � €20M loan granted to a player in thetelecommunications sector.

Multi-country � €15M equity investment in a fund offunds dedicated to financing enterprises.

[ 52 ]

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Coordinated and drafted by: Benoît VerdeauxDesigned and published by: MH Editions

PROPARCO, AFD, Michel Hasson, Getty Image, ©IRD. Cover photo: Michel Dukhan ©IRDISSN: 1276-2156

Copyright deposit April 2008-05-13

Annual report2007



Bangkok (Cambodia, Indonesia,Laos, Thailand et Vietnam)Antoine Vigier 14 F Abdulrahim Place990 Rama IV Road, Silom, Bangkok10500, ThailandTel : +662 636 12 35Fax : +662 636 12 [email protected]

Pékin Paul de la Guérivière7 Floor, Block C, East Lake Villas, 35 Dongzhimenwai Avenue,Dongcheng District, Beijing 100027Tél : (8610) 84 51 12 00Fax : (8610) 84 51 13 [email protected]



Lagos (Nigeria, Benin, countries ofthe Economic and MonetaryCommunity of Central Africa)Charles-André Le PapeMelrose Office suites Phoenix House Plot 26E Abdulrahman Okene Close Off Ligali Ayorinde Street -Victoria Island - LagosNigeriaTel : + 234 12705740

Johannesbourg (South Africa,Zambia, Mozambique, Angola)Laurent KleinBallywoods Office Park 1st Floor Block I 29 Ballyclare DriveBryanston 021 P.O. Box 786555 Sandton 2146 Afrique du SudTél (27 11) 540 7100 Fax (27 11) 540 [email protected]

Nairobi (Kenya, TanzaniaOuganda)Patrick AbbesRoyal Ngao House - Hospital RoadP.O Box 45995Nairobi, KenyaTel : (254 20) 271 84 52Fax : (254 20) 271 79 88 [email protected]

TunisGhislain de ValonImmeuble Miniar - Bloc B - 3rd and 4th floorRue du Lac d'Ourmia1053 Les Berges du LacTel : 71 861 799Fax : 71 779 [email protected]



Addis-Abeba - ETHIOPIA, ERITREA, SUDAN, SOMALIATel. : (251) 11 442 59 01Fax : (251) 11 442 59 [email protected]


















Fort-de-France - MARTINIQUE, PETITES ANTILLESTel. : 05 96 59 44 73Fax : 05 96 59 44 [email protected]









Libreville - GABON, ANGOLA, SAO TOME AND PRINCIPETel. : (241) 74 33 74Fax : (241) 74 51 [email protected]











Papeete - FRENCH POLYNESIA Tel. : (689) 54 46 00Fax : (689) 54 46 [email protected]








Saint-Pierre - SAINT-PIERRE & MIQUELONTel. : 05 08 41 06 00Fax : 05 08 41 25 [email protected]



Yaounde - CAMEROON, CENTRAL AFRICAN REPUBLIC,EQUATORIAL GUINEATel. : (237) 222 00 15Fax : (237) 223 57 [email protected]



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Annual report2007



Bangkok (Cambodia, Indonesia,Laos, Thailand et Vietnam)Antoine Vigier14 F Abdulrahim Place990 Rama IV Road, Silom, Bangkok10500, ThailandTel : +662 636 12 35Fax : +662 636 12 [email protected]

PékinPaul de la Guérivière7 Floor, Block C, East Lake Villas,35 Dongzhimenwai Avenue,Dongcheng District,Beijing 100027Tél : (8610) 84 51 12 00Fax : (8610) 84 51 13 [email protected]



Lagos (Nigeria, Benin, countries ofthe Economic and MonetaryCommunity of Central Africa)Charles-André Le PapeMelrose Office suitesPhoenix House Plot 26EAbdulrahman OkeneClose Off Ligali Ayorinde Street -Victoria Island - LagosNigeriaTel : + 234 12705740

Johannesbourg (South Africa,Zambia, Mozambique, Angola)Laurent KleinBallywoods Office Park1st Floor Block I29 Ballyclare DriveBryanston 021 P.O. Box 786555Sandton 2146Afrique du SudTél (27 11) 540 7100Fax (27 11) 540 [email protected]

Nairobi (Kenya, TanzaniaOuganda)Patrick AbbesRoyal Ngao House - Hospital RoadP.O Box 45995Nairobi, KenyaTel : (254 20) 271 84 52Fax : (254 20) 271 79 [email protected]

TunisGhislain de ValonImmeuble Miniar - Bloc B -3rd and 4st floorRue du Lac d'Ourmia1053 Les Berges du LacTel : 71 861 799Fax : 71 779 [email protected]



Addis-Abeba - ETHIOPIA,ERITREA, SUDAN, SOMALIATel. : (251) 11 442 59 01Fax : (251) 11 442 59 [email protected]


















Fort-de-France - MARTINIQUE,PETITES ANTILLESTel. : 05 96 59 44 73Fax : 05 96 59 44 [email protected]









Libreville - GABON, ANGOLA,SAO TOME AND PRINCIPETel. : (241) 74 33 74Fax : (241) 74 51 [email protected]











Papeete - FRENCH POLYNESIATel. : (689) 54 46 00Fax : (689) 54 46 [email protected]








Saint-Pierre - SAINT-PIERRE& MIQUELONTel. : 05 08 41 06 00Fax : 05 08 41 25 [email protected]



Yaounde - CAMEROON,CENTRAL AFRICAN REPUBLIC,EQUATORIAL GUINEATel. : (237) 222 00 15Fax : (237) 223 57 [email protected]



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