2010 annual report proparco

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PROPARCO’s network

�Paris151, rue Saint-Honoré75001 Paris, FranceTel.: (33) 1 53 44 31 08Fax: (33) 1 53 44 38 [email protected]

NairobiEast�AfricaRoyal Ngao House, Hospital RoadP.O.Box 45955-001000Nairobi, KenyaTel.: (254) 20 271 10 58Fax: (254) 20 271 79 [email protected] Ghislain�de�Valon

AbidjanWest�AfricaBoulevard François Mitterrand01 B.P. 1814 Abidjan 01, Côte d’IvoireTel.: (225) 22 40 70 40Fax: (225) 22 44 21 [email protected] Julien�Lefilleur

LagosCentral�AfricaPhoenix House Plot 26E Abdulrahman Okene Close Off Ligali AyorindeSt Victoria Island Lagos, Nigeria Tel.: (234) 1270 5740

JohannesburgSouthern�Africa�and�MadagascarBallywoods Office ParkIronwood House 1st Floor29 Ballyclare Drive, BryanstonP.O. Box 130067Bryanston 2021, South AfricaTel.: (27) 11 540 71 00Fax: (27) 11 540 71 [email protected] Sophie�Le�Roy

TunisImmeuble Miniar, Bloc BRue du Lac d’Ourmia1053 Les Berges du LacTunis, TunisieTel.: (216) 71 861 799Fax: (216) 71 761 [email protected] Emmanuel�Haye

Casablanca15, Avenue Mers-Sultan20130 Casablanca, MarocTel.: (212) 522 29 5397

522 22 7874Fax: (212) 522 29 [email protected] Amaury�Mulliez

CairoMiddle�East10 Sri Lanka Street, ZamalekCairo, EgyptTel.: (20) 2 27 35 17 88Fax: (20) 2 27 35 17 [email protected]�Eloy

New�DelhiSouth�Asia1A, JanpathNew Delhi 110 001, IndiaTel.: (91) 11 2379 3747Fax: (91) 11 2379 [email protected] Emmanuelle�Riedel�Drouin

Bangkok�South�AsiaExchange Tower35th floor, Unit 3501-02388 Sukhumvit Road, KlongtoeyBangkok 10 110, ThailandTel.: (66) 02 663 60 90Fax: (66) 02 663 60 [email protected]�Pacaud

BeijingChina7th Floor, Block C, East Lake Villas35 Dongzhimenwai Avenue, Dongcheng District100027 Beijing, ChinaTel.: (86) 10 84 51 12 00Fax: (86) 10 84 51 13 [email protected] Ariane�Ducreux

São�PauloSouth�AmericaEdificio Çiragan OfficeAlameda Ministro Rochade Azevedo, 3811° andar, conjunto 110401410-000 São Paulo, SP BrasilTel.: (55) 2532 4751Fax: (55) 11 3142 [email protected] Christophe�Blanchot

Mexico�CityCentral�America�and�CaribbeanTorre OmegaCampos Elíseos n°345piso 5, oficina 501-ACol. Chapultepec – Polanco11560 México D.F. MéxicoTel.: (52) 55 52 81 17 77Fax: (52) 55 52 81 17 [email protected]�Saville

Mediterranean�and�Middle�East

Latin�America�and�Caribbean

Sub-Saharan�Africa

AsiaHeadquarters

PROPARCOAnnual Report 2010151, rue Saint-Honoré - 75001 Paris - France

TEl.: (33) 1 53 44 31 08 - Fax: (33) 1 53 44 38 38

www.proparco.fr

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a n n ua l r e p o rt 2 0 1 0 p ro pa rco H i g H l i g H ts

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Annual report 2010

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Beirut / January 19

Bangkok / September 24

2010 key events

Paris / June 25and December 1

At the beginning of the year in Beirut, PROPARCO and the AFD presented their strat-egy and their new financial tools to the main financial players of the region. PROPARCO supports capital investment, the banking sec-tor and projects relating to infrastructure for Mashreq.

two new offices were opened by PROPARCO during 2010, one in Abidjan, Côte d'Ivoire (re-opening) and one in Cairo, Egypt. The office in Abidjan covers the whole of West Africa and has enabled the relaunch of PROPARCO's activity in this region.The Cairo office was created as a response to the increased activity in the Middle East, covering Yemen, Egypt, Libya, Jordan, Syria, Iraq and the Palestinian territories.

120 African, European and French financiers entrepreneurs, bankers, lawyers, gathered in Paris for the 2nd Edition of the Investment Club organised by PROPARCO on the theme of “Africa, a mar-ket at the door of Europe”. Speakers discussed the emergence of the domestic African market, the role to play and the opportunities especially in the con-sumer goods and agro-industrial area. PROPARCO is encouraged both by the success of this event and the interest shown by participants.

On June 25, the Board of Directors nomi-nated Dov Zerah as President of PROPARCO. Former Deputy Chief Executive Officer of the AFD from 1993 à 1995, then Director General of Dagris, Dov Zerah was nominated Director General of the AFD by the Council of Ministers on June 2.On December 1, Etienne Viard was nominated Chief Executive Officer of PROPARCO by the Board of Directors and thereby succeeds Luc Rigouzzo. Etienne Viard joined the AFD group in 1988, became Deputy Chief Executive Officer in charge of operations of PROPARCO in 2003 before acting as Director of the AFD Mediter-ranean and Middle East department in 2008.

“What investment strategy for Morocco in a changing world?”This was the question 150 Moroccan deci-sion makers asked themselves during a conference in Casablanca organised by PROPARCO and the Moroccan Investment Promotion Agency (AMDI). In the context of rapid industrialisation in Morocco, these exchanges underlined the importance of operating a “mind shift in order to success-fully develop”.

StrAtEgy And nEw FinAnciAl toolS fOR MAShREq

An ExPAndIng ProPArco nEtwork

2nd Edition oF thE invEStmEnt club: AfricA, A mArket At the door of europe

A nEw PrESidEnt And A nEw CEOfOR PROPARCO

imProvEd mAnAgEmEnt oF thE hydro-ElEctricAl PotEntiAl fOR thE MEkOng BASIn

invEStmEnt In MOROCCO

MOROCCO

BEIRUT

Casablanca / October 1

Paris / November 30

ABIDJAn

CAIRO

in southeast Asia, electrical consumption has grown considerably and the numbers of dam projects have multiplied. To raise aware-ness amongst all stakeholders regarding the environmental and social impacts of these projects, PROPARCO organised, in partner-ship with WWF, a conference on responsible financing practices for such projects for the Mekong Basin.

Development0 8

Accountable2 0

Emerging markets2 6

Growth3 4

Long term4 0

Profitability4 6

Appendices5 4

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the financing and co-financing by proparco in 2010 contributed to

2010 key figures

reduce greenhouse gas emissions

by 1.7 million teq co2per year.

and

create or maintain

170,000 indirect jobs.115,000 direct jobs

give 300,000 people access to microcredit.

improve the environmentaland social performance

of 20 projects.

1.7 million people to a telecommunications network.

connect

contribute €210m per annum to fiscal revenue.

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commitments (deals signed) per product 2006-2010 (€M) net banking income and financial results 2006-2010 (€M)in 2006 in 2007 in 2008 in 2009 in 2010

15.421.1

25.228.9

40.7

66.8

51.6

42.1

34.7

26.8

10.3

23.7

20.823.6

18.4

balance sheet 2006-2010 (€M)

950in 2006

987in 2007

1,984in 2009

2,538in 2010

1,629in 2008

€M %

bad debts 2006-2010

4.5% 4.5% 3.9%

2.6%

1.6%

32.3in 2006

33.3in 2007

37.1in 2008

30.7in 2009

24.6in 2010

PROPARCO LOAnSAnD GUARAnTEES (FOREIGn STATES)

FREnCh OVERSEAS TERRITORIES

OThERS

EqUITY

AFD SUB-PARTICIPATIOnS

ThIRD-PARTY LOAnS

FISEA

nET BAnkInG InCOME nET InCOME

GROSS OPERATInG PROFIT

commitments per geographical zone 2010 (€M and %)

LATIn AMERICA AnD CARIBBEAn SUB-SAhARAn AFRICAMEDITERRAnEAn AnD MIDDLE EAST ASIA

commitments per sector 2010(€M and %)

InVESTMEnT FUnDSCORPORATE

InFRASTRUCTUREFInAnCIAL SECTOR

€153m€149m€120m

16%13% 16%

€521m

55% 13% 15% 45% 27%

€123m €137m €423m €256m

27

54

135

97

4029

4176

5532

24

252 244

48

263

893in 2009

944in 2010

467in 2008

357in 2007

261in 2006 60

202

586

156

5

125

570

3010

24

Development

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2 0 1 0 a n n ua l r e p o rt p ro pa rco D eV e LO P M e N T

The President’s message

Dov ZerahPresident of ProParco and chief Executive officer of the aFD

The resilience with which the Southern countries have faced these last two years of global economic and financial crisis is certainly proof of the emergence and strength of development in this part of the world. Sub-Saharan africa in particular has weathered the storm. Whilst building upon sound macro-economic principles, the uninterrupted growth of the african continent for almost a decade is also the result of a dynamic and innovative private sector.

Indeed, private sector initiatives multiply the potential for growth. In times of public sector spending reductions, these initiatives can help achieve development objectives and respond to the needs of the population, notably through job creation and the provision of services to the most needy.

More broadly, by placing greater emphasis on social and environ-mental policy, private entreprise can become a driving force behind improvements in the living and working conditions of local com-munities. countries have everything to gain from a prosperous and well-structured private sector due to both jobs and services to the population as well as additional, stable tax revenues. Year after year, private sector support, firmly enhanced by high standards of social and environmental responsibility, continues to form an integral part of public development aid strategies.

proparco continues to offer a complete range of long term finan-cial products to Southern entrepreneurs – loans, guarantees, local currency financing, equity financing, partners’ current accounts - and thus wholeheartedly fulfils its role as a private investment cata-lyst in developing countries.

2010 has again been a record year for our institution with nearly one billion euros of new commitments. this financing will stimulate pri-vate initiative, consolidate sound economic projects and contribute to economic growth. proparco’s particularly low bad debt ratio, shows that investing in Southern countries is not only beneficial but also profitable.

this success bears witness to the soundness of our business model made possible through the backing of our activities by the agence

Française de Développement, the governance and strategic manage-ment support from our north and South shareholders, a solid financial structure and a large network of european and global partners.

this positive outcome should not however blind us to the challenges ahead. Firstly, we must consolidate our business model by containing our operating costs, by reinforcing our procedures and our organisa-tion whilst at the same time maintaining our privileged position in Sub-Saharan africa where we have become the preeminent bilateral partner.

With the number of people globally suffering from hunger surpass-ing the one billion mark in 2009, we must now concentrate our ef-forts on agriculture and the agro-food industry which have largely been overlooked by public development aid during past decades. Financial partnerships between investors and entrepreneurs may prove useful in ensuring the feeding of the estimated nine billion world population in 2050.

I am aware of the difficulties surrounding the support given to small and medium enterprises, in particular in this domain where activity is largely based on small family farms. However, as developers, we have a powerful tool which will certainly prove decisive in our mission to reduce poverty.

through its countercyclical role and principal of additionality which guide its financing projects, proparco has shown its capacity to support developing countries throughout this economic and finan-cial crisis. Determined to accompany the Mediterranean countries in their transition, we shall pursue an upbeat rhythm of investment, thereby also re-affirming our role as a major investor in this region. authorised since 2009 to operate in all countries outside of the oecD, we will continue our efforts in emerging markets in support of green and inclusive growth.

Behind these issues are not only the lives of men and women but also the future of their children. to meet these challenges, I know that I can count on the expertise of all of proparco’s employees that I here wish to thank for their professionalism, enthusiasm and drive to develop our business.

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Interview with the Chief Executive Officer

What has been noteworthy in 2010? For proparco, 2010 has been an african year. With more than 420 million euros in new commitments (almost 45% of annual financing), we have become sub-Saharan africa’s leading bilateral partner. this region has always been one of our priorities; our legitimacy depends on it. credit for these unprecedented results belongs to my predecessor, luc rigouzzo, as does our presence in latin america and the caribbean. proparco has considerable aspirations for these regions with the opening this year of an office in Mexico city. Just one year after placing all developing countries within our approved geographical scope, this zone now represent 27% of annual commitments. In regions still considered too risky by investors, we have yet again successfully countered the trends. 2010 has also been marked by an exceptional level of equity investments. With an historic 200 million euros – a 123% rise compared to 2009 – proparco has returned to its founding principles established 33 years ago, that of providing long-term, ongoing development assistance to Southern entrepreneurs.

In addition to financing commitments, what have been the sectors and types of projects financed by PROPARCO in 2010?every project that is financed must meet three requirements that are at the heart of our corporate mission: stimulate job creation, provide basic services to the most needy, and promote sustainable development. thus, in africa, we have supported various projects, be they related to transport, telecommunica-tions or microfinance. For example, we financed the port of Dakar expansion in Senegal, improvements to and the extension of the mobile phone network in chad, the development of local and regional agricultural sectors, and also several investment funds specializing in SMe financing and infrastructure. In line with our mandate in latin america and the caribbean and in asia, we have focused efforts on promoting green and inclusive growth.In particular, we have supported renewable energy production by financing a wind farm in Mexico and the extension of a geothermal power station in nicaragua. Finally, in an effort to enhance its reach and influence, proparco has actively supported banks and investment funds.

What has been the main impact of these projects?the projects financed and cofinanced by proparco in 2010 will enable the creation or maintaining of 285,000 direct or indirect jobs, access to microcredit for more than 300,000 people, and the connection of more than 1.7 million people to a telecommunications network. they will also enable the produc-tion of 367 MW of renewable energy and the reduction of greenhouse gas

emissions by 1.7 million teq co2 per year. projects financed by proparco will also generate 210 million euros per annum in fiscal revenues, which is far from negligible.

PROPARCO has enjoyed sustained growth of its business in the past 5 years. What are the challenges that lie ahead?two key words sum up the challenges that lie ahead: confirmation and con-solidation. With more than a billion euros committed in 2010, proparco has consolidated its position acquired over the past five years as one of the leading bilateral development finance institutions in the world. against the backdrop of the financial crisis, we have been regularly called upon to counter the reduction in resources allocated to the Southern countries, and we must now strive to maintain this current level of activity.exceptional growth requires us to meet a second challenge: management of a 2.1 billion euros portfolio. We must remain attentive to the ongoing management of projects financed by our loans and more particularly by our equity investments. We must maintain the high standard set by the men and women of proparco who ensure the success of the business. It is important to highlight that the rate of bad debt has dropped to a record low of 1.6% at the end of 2010.Yet another challenge appeared at the end of last year. the situation created in the Mediterranean zone as a result of the arab Spring will force proparco to rethink its business strategy in order to better assist the development of coun-ties in this region, which remains one of our priorities.

As one of the world’s leading bilateral development finance insti-tutions, what are PROPARCO’s prospects for 2011?2011 will be marked by the consolidation of our partnerships with both euro-pean and global development finance institutions. We must remain focused on our mission to catalyse private investment in support of developing nations.Increasing alignment of financial procedures will generate new co-financing op-portunities with partners in the Southern countries and enable us to maintain the current level of financial commitments. Moreover, in 2011 we shall begin to assess sectors previously overlooked by investors and thus expand and rein-force our scope of activity based on the principle of additionality.I am confident in the ability of proparco’s teams to constantly look for new markets and to continue to support the private sector in the Southern coun-tries, therefore proving that long term investment in sustainable development in developing countries can be both beneficial and financially rewarding.

Etienne Viardchief Executive officer of ProParco

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12 3 4

56 7 8 9 10 11 12 13 14 15 16 17

Dov ZERAH President (10)

Didier MERCIER Vice-President Jean-Jacques MOINEVILLE (16)

Pierre JACQUET (11)

Gilles BERGIN (13)

Rémi GENEVEY (3)

Statutory Observers Ministry of the economy, Finance and Industry

Thomas GROH (5)

Ministry of Foreign and european affairs Cyrille PIERRE (15)

Non-statutory Observers aga Khan Fund for economic Development

Lutaf KASSAM

West african Development Bank Oumar DIARRA (1)

Bpce Josiane LANCELLE

coface Maëlia DUFOUR

GDF Suez Micheline BOSSAERT (6)

Veolia eau Patrice FONLLADOSA (9)

Claude WARNET

Tanguy DENIEUL (2)

MaZarS Odile COULAUD Guillaume POTEL

KpMG auDIt Arnaud BOURDEILLE M. Malcom MC LARTY

agence Française de Développement Stéphane FOUCAULT (17)

natixis Jean-Claude GARDETTE (4)

crédit agricole Sa Eric HOTELLART

Development Bank of Southern africa Admassu TADESSE

Bnp paribas Philippe SECHAUD (8)

cDc entreprises elan pMe Pascal LAGARDE (14)

DeG Winfried NAU (7)

Bpce International et outre-mer Philippe GARSUAULT

BMce Bank Brahim BENJELLOUN-TOUIMI

president Dov ZERAH (10)

Vice-president Didier MERCIER

chief executive officer Etienne VIARD (12)

Deputy ceos Philippe BASSERY Laurent DEMEY

DIRECTORS OBSERVERS AND ADVISORS

GOVERNMENT COMMISSIONER

AFD WORK’S COUNCIL REPRESENTATIVE

AUDITORS

PERMANENT REPRESENTATIVES

CORPORATE OFFICERS

Board of Directors

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A North – South Investment community

In a MultI-polar anD MultI-StaKeHolDer WorlD, tHe nortH-SoutH, puBlIc-prIVate GoVernance oF proparco IS Well aDapteD to aSSISt

prIVate InVeStMent aS a Vector For DeVelopMent.

PROPARCO differs from its European counterparts through its governance. It resembles a north-South investment community made up of thirty public and private shareholders who are com-mitted long term to development.

the agence Française de Développement, a public institution implementing French development and cooperation policy is the main shareholder (59% of capital). proparco benefits from its supports in terms of human resources, financial backing , commer-cial network and geographical presence. external shareholders, businesses, banks and european and african financial institutions bring to the table a decisive expertise in the domain of strategic management and governance (41% of capital). this enlarged community has been meeting for the past two years at proparco’s Investment club, a crossroads for meeting , exchanging and reflecting on tomorrow’s challenges for the private sector in the Southern economies. A unique

mode ofgovernance.

Capital breakdown: €420m

59% AGENCE FRANçAISEDE DéVELOPPEMENT

26% FRENCH FINANCIAL ORGANISATIONS BNP ParibasBPCE IOM CDC Entreprises Elan PME Coface Crédit Agricole SA Natixis Société Générale

11% INTERNATIONAL FINANCIAL ORGANISATIONS Aga Khan Fund for Economic DevelopmentBMCE Bank Banque de Tunisie BOA BOAD Development Bank of Southern Africa DEG

3% FRENCH COMPANIES BouyguesBouygues Construction DMC GDF Suez Saga Saur International SES SA SIPH Socotec international SOMDIAA Veolia

1% FUNDS AND ETHICALFOUNDATIONS M. Xavier de Bayser IDEAM Natixis Solidaire

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Management devotedto growthand development

Know-how and experience:

1 5


Executive team

Management team

Head of Banking and capital Markets Division

Head of Finance andadministration Division

Etienne Viard

Jean-Pierre Barral

Hélène Templier

Stéphanie Lanfranchi

Laurent Demey

Amélie July

Marie Sennequier

Marie-Hélène Loison

Marianne Sivignon-Lecourt

Jérôme Bertrand-Hardy

Philippe Bassery

chief Executive officer

Head of Infrastructure& Mining Division

Head of credit andPortfolio Division

Head of corporate Division

Deputy chief Executive officerin charge of operations

Head of Private EquityDivision

Head of Legal Division

Deputy chief operating officer

Deputy chief Executive officerin charge of the General Secretariat

Operational teams

General Secretariat

+33 1 53 44 47 [email protected]








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proparco InVeStS anD catalYSeS prIVate InVeStMent In eMerGInGanD DeVelopInG countrIeS In FaVour oF GroWtH, SuStaInaBle DeVelopMent

anD tHe MIllennIuM DeVelopMent GoalS.

A stable and committed investor in the South

More than thirty years ago, proparco was born out of the belief that the private sector is a major player in development. as a driver for growth and job creation, said sector can generate resources the-reby enabling States to play their role of regulation and redistribution of wealth. complimentary to the public sector, it also assists in the provision of essential services. Finally, the private sector is at the heart of social and environmental issues and thus becomes itself the object of global public policy. proparco encourages private sector invest-ment in emerging and developing countries along three guidelines: stimulate and sustain job creation; provide viable access to basic services such as energy, water, trans-port, health, education, microfinance or telecommunications;

inspire the highest social and environmental standards.

as a development finance institution dedicated to the private sector and subsidiary of the agence Française de Développement, proparco enjoys unique governance within its field, bringing together thirty or so shareholders, both private and public from north and South.projects financed by proparco are first and foremost selected for

their impact on development. to this prerequisite is added a posi-tive constraint to ensure their sustainability: the project’s economic viability and profitability. the projects are concentrated in four main sectors: development of businesses, banks, sustainable infrastructure and the fight against global warming.proparco invests in four continents ranging from large emerging countries to the poorest countries, in regions, sectors or entrepre-neurial projects deemed too risky by commercial banks. It therefore fully plays out its role of countering the trends within the subsidiarity principles that guide its finances. proparco sustainably accompa-nies its clients by proposing a full range of long term financial tools best adapted to the specific needs of investors in these regions (loans, guarantees and equity investments).2010 has been another growth year for proparco. Its investments have reached a record level of €950M with a net result of €18M. It is also an historic year which confirms the priority given to sub-Saharan africa where proparco has provided a without precedent level of support of €420M in investment which makes it the leading bilateral financial partner in the region.

are concentrated onProjects

four prioritysectors.

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2 0 1 0 a n n ua l r e p o rt p ro pa rco D eV e LO P M e N Tr a p p o rt a n n u e l 2 0 1 0 p ro pa rco D É V e LO P P e -

a puBlIc InStItutIon, aGence FranÇaISe De DÉVeloppeMentHaS Been InStruMental For tHe paSt SeVentY YearS In tHe FIGHt aGaInSt poVertY anD tHe proMotIon oF DeVelopMent In SoutHern countrIeS

anD tHe oVerSeaS terrItorIeS.

AFD: Promote development

The Agence Française de Développement (AFD) imple-ments French government policy.Present on the ground in more than 50 countries and 9 Overseas territories, the AFD finances and supports projects which improve local population living conditions, encourage economic growth and protect the planet. These include schooling , maternal health, agriculture and local businesses, water supply, infrastructure development, bio-diversity conservation, the fight against global warming...In addition to an impressive range of financial products, the AFD also proposes training materials, analysis and evalua-tion methods to its partners. Sub-Saharan Africa is the Agency’s main area of presence. It is also strongly present in the Mediterranean and the Middle East, in Asia and the Pacific Rim, Latin America and the Caribbean. Fragile States each benefit from a specific action plan.

In 2010, the AFD spent more than €6.8 billion in specific actions in developing countries and in the Overseas territo-ries. Projects financed notably contributed to the primary schooling of 13.4 million children, the improvement in water supply for 33 million people and the granting of microcredit to just over 700,000 people. Energy efficiency projects in the same year will enable the reduction of nearly 5 million tons of CO2 per annum.

more than €6.8 billionin favour of development.

the AFD spentIn 2010,

1 8


proparco IS preSent In Four contInentS.

An international presence

LAGOS NEW DELHI

Mexico Office(Central America and Caribbean)

São Paulo Office(South America)

Latin America and Caribbean

45COMMITMENTS

€423M

Casablanca Office

Tunis Office

Cairo Office (Middle East)

Mediterranean and Middle East

Sub-Saharan AfricaAbidjan Office(West Africa)

Johannesburg Office(Southern Africa and Madagascar)

Lagos Office (Central Africa)

Nairobi Office (East Africa)

% OF TOTAL ACTIvITy

15COMMITMENTS

€137M

ABIDJAN

NAIROBI

MEXICO CITy

SÃO PAULO

JOHANNESBURG

CASABLANCA

PARIS

CAIRO

TUNIS

BANGKOK

BEIJING

27COMMITMENTS

€256M

Bangkok Office(Southeast Asia)

New Delhi Office(South Asia)

Beijing Office

Asia

COMMITMENTS

€123M

13

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

Headquarters – Paris

% OF TOTAL ACTIvITy

% OF TOTAL ACTIvITy

% OF TOTAL ACTIvITy


1 9

Maria Peña, Investment officer specialized in banks and capital markets at ProParco“The IDB has invited us to participate in the setting up of a long-term local currency credit line to support Mibanco development activity, flag-ship institution of microcredit in the region. Thus through the syndicated loan by the IDB (US$36M) from Dexia Micro-Credit Fund, Calvert Foundation and Oikocredit, which was added to PROPARCO’s funding has enabled Mibanco to successfully raise the equivalent of US$45M in local currency. In 10 years, Mibanco has become the leading institution

for microfinance in Peru with a business model closely followed by com-petition. Besides its profitability and prudent management, Mibanco is a responsible lender that contributes to the development of productive forces in Peru. It was therefore in our interest to support its growth. This operation was also an opportunity to strengthen ties between PROPARCO and the IDB Group in cooperation activities in Latin America."

READ MORE ABOUT THIS PROJECT AT www.PrOPArcO.Fr

The resilience of the Peruvian economy was made possible by a strong macroeconomic position, based upon buoyant domestic demand and sustained investments in key sectors. peru's growth is largely dependent on the health of small and medium enterprises (SMes). they alone account for 85% of the workforce and contribute 42% of GDp.Mibanco is the first peruvian commercial bank specializing in microfinance. Small and micro-entrepreneurs account for 64% of its portfolio. about a quarter of the loans granted by the bank are for an amount less than uS$330.proparco was requested by the Inter-american Development Bank (IDB) to finance

a long-term loan of uS$20 million dedicated to the development of Mibanco’s microcredit portfolio. proparco’s funds will thus be used to finance the growth of all products dedicated to the segment of Very Small enterprises (VSe) and unit amounts below uS$30,000.through this first partnership with the intermediary Mibanco, proparco manages to meet the needs of small businesses in the country, true foundation of the peruvian economy.

proparco SpoKeSperSon

Finance the development of Peruvian very small businessesperu HaS WeatHereD tHe 2009 econoMIc anD FInancIal crISIS.

Peru / Mibanco

"Supporting a responsible lender."

"The intervention of PROPARCO alongside the Inter-American Development Bank, has enabled us to con-tinue to strengthen our policy of banking services and to include new customers in the Peruvian financial system, through responsible lending to microentrepre-neurs and small businesses. The loan denominated in national currency, the first of its kind for a Peruvian microfinance institution, has allowed us to eliminate exchange rate risk because most microcredit are in turn lent in local currency. In addition, funds received will support the establishment of a national train-ing programme for women entrepreneurs. This pro-gramme is unique in the region and will create more than 100,000 micro-entrepreneurs by 2014."

cFo of Mibanco

“We will build more than 100,000 micro-entrepreneurs by 2014.”

MIBanco SpoKeSperSon

Ramiro Postigo Castro

T e L L i N g O u r STO ry

+ Turn To page 23

to public finances in the countries

of intervention.

€210M per annum will contribute

Projects financed by PROPARCO

+ Turn To page 22

have received financial assistanceMore than 20 projects

environmentalperformance.

regarding the improvementof their social and

+ Turn To page 22

PROPARCO signed

common among European DevelopmentFinance Institutions.

In May 2009,

the“Principles forResponsible Financing”

+ Turn To page 24

€5M in subsidies

for technical assistance

to African SMEs.

FISEA provides

Accountable

2 2

a n n ua l r e p o rt 2 0 1 0 p ro pa rco ac co u n ta b l e

In May 2009, ProPArCo signed the "Principles for responsible Financing” common among european Development Finance Institutions. these principles state that the investment should have a positive impact on local communities, including respect for human rights and the environment and that these financial institutions shall: ensure compliance with local regulations of any operations

financed and encourage the application of international norms and standards in their investments and also in those of their sub-contractors;

ensure that clients mitigate and compensate any negative social and environmental impact;

encourage clients and their stakeholders to engage in dialogue to improve the management of their social and environmental investments;

provide transparent and accountable information on all activi-ties funded.

In 2010 proparco created its own environmental and Social Impacts unit - eSIu. It is responsible for meeting the objectives mentioned above, through: the definition of environmental and social due diligence to be

undertaken in the projects; the support given to project teams to achieve this throughout

the project life cycle; the development of partnerships with other donors.

thus for example, proparco will assist some bank customers in the implementation of management systems for social and environmental risks within their portfolios or help companies in certification processes (ISo 14001, FSc) for the financing of their forest plantations.

Manage tHe rISKS anD IMproVe tHe SocIal anD enVIronMental perForMance oF proparco’S corporate clIentS.

Social and Environmentalresponsability

a positive impact

on all communities involved.

Investments must have

Project life cycle - PROPARCO

StEPS Identification Evaluation Decision Supervision /Post-evaluation

E&S1

Exclusion list

E&S rating:A, B, C, IF

Identification of E&S due diligence to be carried out

E&S due diligence

ESIS2 / ESMP3

E&S audit

Validation of evaluation

results

ESA4 clauses

Action plan

Action Plan Monitoring

technical support

1 Environmental and Social / 2 Environmental and Social Impact Studies / 3 Environmental and Social Management Plans4 Environmental and Social Accountability

2 3


FInd These FIgures on www.proparco.fr

the financing and co-financing by PROPARCO in 2010 contributed to

Connect 1.7 million people to a telecommunications network.

Give 300,000 people access to microcredit.

Improve the environmentaland social performance of 20 projects.

Contribute €210M per annumto fiscal revenue.

Reduce greenhouse gas emissionsby 1.7 million teq CO2 per year.

Create or maintain 115,000 direct jobsand 170,000 indirect jobs.

ProPArCo attempts to measure the expected impacts of projects prior to the funding decision. this approach is based on a tool com-mon to several european Development Finance Institutions. Included in these evaluation criteria are the current government revenue, the net inflow of foreign exchange, job creation, technology transfer and know-how, social effects and compliance with norms and standards on environmental matters.to develop a global vision of the impact of its financing, proparco publishes a series of indicators per sector, in common with the agence Française de Développement (aFD).they show the expected development results of projects authorized in the year. today proparco wishes to extend this principle of evalu-ation to each stage of the project life-cycle from the project appraisal to the evaluation of results of operations financed. this involves set-ting up the monitoring of projects within the portfolio by extending the use of these tools and also conducting specific studies in the field several years after the implementation of the project. these ex post studies will build on experience and actions taken in order to improve practice.

Methodological Footnote Impact indicators reflect the outcome of each project. Assessed ex ante, during project's appraisal and based on the results it should generate, these indicators are part of an overall contribution to development. Thus, the resources made available by PROPARCO which lead to the anticipated impacts are not the only ones to be taken into account: the possible involvement of other financiers and funding companies also contribute to the results presented.

Measuring impactSelectIng proJectS, eValuatIon tHrougHout tHeIr lIFe cYcle anD

IMproVIng tHe eFFectIVeneSS oF proparco'S actIonS.

FInd The IMPACTs on www.proparco.fr

PROPARCO publishesa series

in common with the AFD.of sectoral indicators

2 4


The Investment and support Fund for Businesses in Africa (FIseA) managed by proparco, earmarks €5M in grants to supplement funding provided through technical assistance to Small and Medium enterprises (SMes). In 2010, these additional resources have ena-bled african SMes to increase their performance while developing innovative solutions that foster development. this complementary support has for example enabled the establishment of a system for recovering rainwater in a flower farm in Kenya, developing a mar-keting plan for a microinsurance company for people living with HIV in South africa and improving information systems for a com-pany providing financing and support services to small businesses in seven african countries.proparco also assists the private sector in compliance with international standards to combat money laundering. Mobilizing resources from the agence Française de Développement (Fund for capacity building of governance of a total of €1.5M), proparco has enabled improvement in procedures for three financial institu-tions in africa.

Finally, proparco’s technical assistance staff provide financial sup-port in the complex area of the fight against climate change. In par-ticular, solutions are brought to the operational teams to assist the success of carbon finance projects.

unIte FunDIng anD tecHnIcal aSSIStance to concIlIate return on InVeStMent anD tHe MIllennIuM DeVelopMent goalS.

Building capacity

To date, only 5% of low-income persons in developing countries enjoy social security coverage or health insurance. And yet, health insurance needs are considerable.LeapFrog Financial Inclusion Fund is the only investment fund specialised in microinsurance in sub-Saharan Africa. FISEA contributes up to €5M to this fund to enable it to increase its range.

In addition to this equity stake, FISEA technical assistance has granted LeapFrog Labs an additional €250,000 subsidy. This support has in turn enabled it to further underwrite the capacity of companies within its port-folio and to provide more efficient support to its microinsurance activities (create, extend, diversify).

Encourage the development of microinsurance offer

reAd More ABouT ThIs ProjeCT AT www.proparco.fr

these resources have enabled African SMEs to increase productivity.

“This activity supporting capacity development was begun at PROPARCO in 2008 within the FISEA framework and in support of its growth strategy and the Millennium Development Goals in Africa. The provision of subsi-dies coupled with accompanying investment makes it possible to encourage private operators to sustain accountable business models and strong de-velopmental impact. This resulted in initial operations back in 2009 being so successful that PROPARCO continues to expand its activities in 2011, particularly in the areas of the fight against poverty, access to energy and preservation of the environment.”

“Sustain accountable business models.”Cyril Renault

in charge of Technical assistance



2 5

Jean-Philippe Bigot, Director, Bigot Fleurs Groupe

“All of our rose production is now in Kenya and there, our profit has mul-tiplied by four. Our cultivation in Le Mans is now specialised in tulip production and there, our turnover has multiplied by 2.5. Prior to 2000, we used to employ 30 workers. We now employ 100 people in France and 1,000 people in Kenya. Going international enabled us to save our French business.

We rigorously respect our workers’ rights both in France and in Kenya: health care and access to drinking water is free and the rose workers are paid twice as much as the minimum wage in their country. The Max Havelaar Fair Trade label allowed all workers to enjoy a 10% bonus. In Kenya this amount has enabled the construction of a village. I know no NGO able to offer similar conditions to 1,000 Kenyans.”

reAd More ABouT ThIs ProjeCT AT www.proparco.fr

Among the leading job creators, the cut flower sector plays a key role in the economic development of this country.groupe Bigot is a French family business with a long standing experience in the cut flower sector, particularly roses and tulips. Facing increased competition from east africa roses, the group decided to create a rose farm in Kenya and to maintain tulip production in France. Since then, Bigot Flowers has developed an exemplary business in Kenya both in environmental and social development and recently obtained the Max Havelaar Fair trade label. greenhouse gas emissions related to the production and import of Kenyan roses

are six times less than equivalent emissions in european production.FISea’s €2.5M equity stake in groupe Bigot is intended to accompany this innovative approach via an investment programme. Bigot Flowers has thus been able to purchase land and to replace 27 hectares of obsolete greenhouses with optimum production equipment thereby enabling a 20% increase in productivity. a complimentary subsidy has provided technical support for a rainwater collecting system.

“This project, identified by our Nairobi office, was considered too risky for traditional investors given its positioning in a market highly sensitive to both price variants and sales volumes. In fact, this investment cor-responded to several of FISEA’s key priorities for its long term economic fabric development strategy towards SME/VSEs in sub-Saharan Africa. For this complex project, in addition to the financial solutions brought by FISEA, PROPARCO provided both legal and techni-cal assistance. This project is exemplary both in social added value and development."

Lawyer at PROPARCO

BIgot FleurS SpoKeSperSon

Sustain production of Fair trade labelled rosescut FlowerS are tHe MoSt DYnaMIc agrIcultural Sector In tHe countrY.

KENYA / Bigot Flower s

“An exemplary project.”


David Fardel

“Today we employ 1,000 people in Kenya.”

t e l l i n g o u r Sto ry

+ TURN TO page 30 + TURN TO page 31 + TURN TO page 28 + TURN TO page 32

PROPARCO’s activityin sub-Saharan Africa

has grown by 60% since 2009.

In 2010, PROPARCO became

for largeMediterranean operators.

a stablecapital

partner

PROPARCO has invested

in Latin America and the Caribbean.

€87M in 2010

in the energysector

Since early 2011,water & sanitation,

financing in Asia.

sustainable tourism are available for PROPARCO

Emerging Markets

A N N UA L R E P O RT 2 0 1 0 P RO PA RcO e m e rg i n g m a r k ets

2 8

After a slowing down due to the global economic crisis, Africa in 2010 once again showed a high growth rate of nearly 5%. This dynamic structural rebound is due to the exceptional population growth, accel-erated urbanisation and a tremendous demographic dividend. The emergence of an internal market is driving for development on the continent. Nevertheless, there are risks and challenges to sustainable and well balanced growth. The global crisis has delayed reaching the Millennium Development Goals, poor infrastructure limits the impact of growth and almost 245 millions young people will arrive on the job market in 2025.

PROPARcO cONcENTRATES ITS EFFORTS IN SUB-SAHARAN AFRIcA IN ORDER TO ENcOURAGE STRONG, LASTING AND JOB cREATING GROWTH.

A priority: accompany the emergence

of sub-Saharan Africa

In 2025, almost

245 millionsyoung Africans

will arriveon the job market.


2 9

Sub-Saharan Africa is PROPARCO’s key priority and it continues to support economic growth. In the region, PROPARcO underwrites key activities which support lasting growth: supply of basic services, access to energy, telecommunications,

transport, business funding , support to local entrepreneurs, support for banking and financial intermediation, promotion of norms meeting international social and environmen-

tal standards.In 2010, PROPARcO provided unprecedented support to the private sector in sub-Saharan Africa by investing €420M, that is 45% of its annual funding. Since 2009, PROPARcO’s activity has seen a 60% increase in this region.In 2010 these funds have provided support to various projects in the transport, telecommunications, agro-industry, banking and micro-finance sectors. This year was particularly notable for the re-launch of activities in Western Africa and the re-opening of an office in Abidjan covering the whole of the region.

ReAd mORe AbOUT ThiS PROjeCT AT www.proparco.fr

FISEA, truly involvedand investing side by sidewith African businessesCreated in Paris in April 2009, FISEA is an investment fund owned by AFD and managed by PROPARCO. This fund makes equity investments in businesses, banks, microfinance institutions and investment funds in sub-Saharan Africa. Having invested €48M in 2010, the fund is one of the major elements of French initiative to support economic growth and job creation in Africa.This year, FISEA is concentrating its efforts on SMEs (29%), agro-industry (29%), microfinance (21%) and health care (7%). Indeed, FISEA has invested in 6 Invest-ment Funds in 2010. This funding has enabled these Funds to invest in 60 businesses and thus to contribute to the development of 18,000 jobs.

In 2010, PROPARCO invested

€66M in WestAfrica.


Contribute to the funding of infrastructure in sub-Saharan Africain sub-Saharan Africa, infrastructure providing access to basic services is estimated to have a deficit of US$35 billion. The African infrastructure investment Fund ii (AiiF) is one of the rare investment funds specialising in infrastructure projet financing on the continent. its vocation is to concentrate on the construction of roads, airports, ports, railways as well as on the production and distribution of electricity.PROPARCO and the AFd have provided US$30m in the first round of this fund, along with the international Finance Corporation, the African development bank, macquarie Group, Old mutual and other investors. between ten and fifteen projects will be financed for an amount of up to US$65m to enable energy and transport access to both the population and businesses.

SUb-SAhARANAFRiCA


3 0

historically, PROPARCO concentrated its efforts on the maghreb region but in recent years it has extended its activity and today covers a broad area from Mauritania to Yemen. The main challenge in this region is to stimulate growth and create jobs to meet the rapid increase of a very young popula-tion. More than 100 million jobs need to be created in the next twenty years. In this context, PROPARO’s first objec-tive is to provide support for the devel-opment of SMEs and to large industrial

groups in sectors which create jobs. To facilitate both development and access to credit, PROPARcO directly invests capital in businesses, financial institu-tions and investment funds managed by local teams. In 2010, out of its portfolio of €137M, €88M were invested to sup-port financial institutions in the region and €32M in investment funds.

In 2010, PROPARcO became an established capital partner for large Mediterranean operators such as Byblos Bank, BMcE or the Tunisian pharmaceutical laboratory Unimed. Its support for capital investment has a double benefit: PROPARcO sup-ports a large number of businesses in a wider and more risky range of indus-tries, while also providing support for governance. PROPARcO also supports large banks and their subsidiaries by proposing longer maturities and a wide range of credit lines. The launch of the Averroès II investment fund in 2010 and its equity in several funds will develop sustained capital investment activity.

THE MEDITERRANEAN AND MIDDLE EAST REGION IS THE SEcOND GEOGRAPHIcAL PRIORITY FOR PROPARcO. ALL EFFORTS AIM TO cONVERGE NORTH

AND SOUTH EcONOMIES AND SUPPORT JOB cREATION.

A challenge: job creation in the Mediterranean

of growth and job creation.

The region’s main challengeremains the stimulation

TURkey

Favour renewable energy development


in Turkey, increase in energy demand is one of the greatest in the world. The energy deficit today menaces the growth perspectives of this country and accentuates the need to reinforce actual production capacity. The potential for renewable energy is high yet barely exploited. PROPARCO supports belen elektrik Üretim A.S in the construction and running of a wind farm with a capacity of 30 mW. A senior loan of €11.5m from PROPARCO along with funds from other banks will enable the financing of increased energy production in Turkey, reduce hydrocarbon imports and avoid emissions estimated at 60,000 teq CO

2 per annum.


3 1

in a region still deemed too risky by investors, where funding tenors in certain countries do not exceed one year, PROPARcO provides long term resources to private partners. As in Asia, PROPARcO’s funding in Latin America and the caribbean aims for green and inclusive growth balance by combining environmental balance and reducing inequalities.With €256M invested, the year 2010 symbolises of PROPARcO’s strong commitment to Latin America and the caribbean. More than a year after extending its area of intervention to all developing and emerging countries, PROPARcO has most notably financed projects in Nicaragua, Peru, Jamaica and Mexico. The opening of an office in Mexico city in 2011 covering central America and Mexico continues PROPARcO’s strategy of staying close to its clients.PROPARcO funding has focused on the energy sector with the aim of supporting broad and sustainable access to energy as well as the development of renewable energy production. For exam-ple, PROPARcO has financed the extension of a geothermal plant in Nicaragua, the construction of a wind farm in Mexico and the development of an electricity company in Jamaica.

In addition, by providing long term resources to banks, PROPARcO supports their development and enables access to credit and therefore funding of innovative projects, for example in the fight against climate change.

2010 SEES THE INAUGURATION OF PROPARcO’S STRONG cOMMITMENT TO ALL LATIN AMERIcAN AND cARIBBEAN cOUNTRIES.

Working for greenand inclusive growth in

Latin America and the Caribbean


brazil is a leading player in the sugar cane industry. Retained by the French group of farmers Tereos internacional, the brazilian company Guarani each year transforms 20 million tons of sugar cane into sugar, electricity and ethanol. more than half goes into the production of ethanol. ethanol produced from brazilian sugar cane

production obtains by far the best yield and enables up to 80 to 90% reduction in greenhouse gas emissions from vehicles. PROPARCO financed via a US$50m senior loan the necessary investments enabling Guarani to improve its agricultural performance for the whole of its brazilian production units.

will enable PROPARCOto be nearer to its clients.

office in Mexicoin 2011 covering Central America

The opening of an

bRAziL

Develop sugar, ethanoland electricity production


3 2

in Asia, 2009 saw the withdrawal of banks and subsequent re-financing difficulties. In contrast, in 2010 china and India have led the way out of the crisis followed by most of the Asian countries. The return of liquidity has enabled the large local banks to once again play their role as economic financier.In this context PROPARcO, which countered the trend back in 2009, has been less in demand and has therefore been able to concen-trate on its core mission in the region by investing almost €123M. In the other large emerging nations, as in the rest of the continent, PROPARcO’s funding aims to encourage green and inclusive growth and is concentrated on: the fight against climate change, social sectors: higher education and health, agro-industry, microfinance.

In priority Asian countries, ie, Vietnam, Laos and cambodia, PROPARcO supports growth and employment. In particular, PROPARcO has provided US$15M funding to the development of a container terminus and has provided several credit lines to financial institutions for the development and financing of investment in the clean energy sector in Vietnam.In the context of a post-conflict mandate and via a credit line, PROPARcO has also participated in the reconstruction effort and economic recovery in Sri Lanka.As of 2011, two new sectors are eligible for PROPARcO funding in Asia: water & sanitation and sustainable tourism.

Improvingenergy efficiency in Asia

IN ASIA, PROPARcO cONcENTRATES ITS EFFORTS ON FOUR PRIORITY SEcTORS: cLIMATE cHANGE, EDUcATION AND HEALTHcARE, AGRO-INDUSTRY AND MIcROFINANcE.

As of 2011, two new sectorsare eligible for PROPARCO

and sustainable tourism.

funding in Asia:water & sanitation


SRi LANkA

The reconstruction effort and economic recovery in areas of Sri Lanka affected by the 2004 tsunami and long term armed conflict is a long process. Local businesses which have often had to redesign their activities play an essential part in this recovery. Their development to a large extent depends on their access to long-term financial resources. Lanka Orix Leasing

Company is the first leasing company present since 1980 and specializing in the offer of financial products to Sri Lankan Smes, specifically in reconstruction zones after the tsunami. PROPARCO’s €10m credit line will allow it to have long-term resources at its disposal and thus perpetuate its leasing activities in this region.

Participate in reconstruction efforts and economic recovery


3 33 3

Imane Akalay, Investment Officer specialized in infrastructure at PROPARCO“This project came about in the context of the global crisis of 2008-2009 which had a heavy impact on maritime companies. Given the contraction of trade, commercial banks had little appetite for finan-cing projects associated with transport of commodities. By deciding to participate in this project, PROPARCO played out our countercyclical role to the full by deciding to support major infrastructure development projects in such a context. Whilst at the same time enabling relief from

the balance constraints of commercial banks, PROPARCO’s commit-ment gives a strong signal regarding the economic growth potential in the region and responds to the growth of economic activity in Senegal as well as Mali where trade transits via its coastal border countries.Finally, this project will have a major impact on the Senegalese eco-nomy because it will increase trade, create jobs and generate important fiscal revenue.”

The Port of dakar is both the entry and exit point for the country’s trade and is a potential contact point with the major shipping routes of the Atlantic. Dakar is the third largest port in West Africa behind Abidjan and Lagos and plays an important regional role, particularly for Mali. Modernisation and development of the Port of Dakar began back in 2006 with the concession, rehabilitation, extension and operation of the container terminal. The operation and the investments needed were consigned by contract to Dubaï Port World Dakar, a subsidiary of Dubaï Port World (DPW), the fourth global operator of container terminals. The project consisted of developing traffic capacity and the storage of containers for import/export but also to increase transhipment activities.PROPARcO was contacted to finance the

extension of the container terminal for the North zone of the Port of Dakar in collaboration with other financial institutions and commercial banks. PROPARcO thus granted a direct loan of more than €16M to DPW for a total project cost estimated at €200M, of which nearly half was debt.This project will have a major impact on the country’s economy and trade. The private concession for such a project will enable the Senegalese authorities to concentrate their budgetary efforts on areas most in need, such as primary education and health.

“The Port of Dakar development project consists of increasing the reception capacity for large ves-sels and the storage of their containers. In reality, this means lengthening the quaysides, deepening channels, filling one of the docks to increase storage space and renforcing their equipment to accommo-date third generation vessels with a transport ca-pacity of 3,000 twenty foot equivalent unit (TEU). The increase in reception capacity and expected productivity gains will significantly augment the port’s traffic. The finance offered by PROPARCO to DPW Dakar, our operator, will reinforce the im-port/export and transhipment activities of the Port of Dakar.”

Chief Executive Officerof the Dakar Port Authority

PROPARcO SPOKESPERSON

Participate in the developmentof the Port of DakarDAKAR IS THE THIRD LARGEST PORT IN WEST AFRIcA.

Senegal / Dakar Por t authorit y

“Strengthen our activity.”

PORT OF DAKARSPOKESPERSON

Bara Sady

“Playing out our countercyclical role to the full.”


t e l l i n g o u r sto ry


€521Minvested in favour

of financial institutions. reached

Corporateinvestments

€149M.Renewable energy projects financed in 2010 will save

1.5M tons of CO2 emissionsevery year.

financés

Growth

90,000 jobswill be created

Nearly

due to PROPARCO financed investment fund activity.

3 6

A N N UA L R E P O RT 2 0 1 0 P RO PA RcO g ROW T H

Although liquidity has returned to the markets, especially in Asia, long term finance, often essential for infrastructure projects, remains inaccessible. PROPARcO’s activity in the infrastruc-ture sector remained constant in 2010 given that the company invested €153M, of which half was in energy related projects.In Africa and the Mediterranean region, PROPARcO provided finance for the energy, telecommunication and transport sec-tors. In Latin America, the caribbean and Asia, PROPARcO chose to concentrate its efforts on the development of renewable energy. In 2010, this was demonstrated by financing wind farms in Mexico and Turkey and the extension of a geothermal station in Nicaragua. Regarding energy access, PROPARcO, followed by other donors, initiated a substantial financing effort in favour of an electricity company in Jamaica.

Having for several years assisted mobile phone development, PROPARcO continues to support Internet development and financed a satellite project facilitating connections in remote areas of Africa.Finally, in the transport sector, to stimulate investment brought to the region by increased maritime transport, PROPARcO partici-pated in the Port of Dakar expansion.

SUSTAINAbLE AccESS TO INFRASTRUcTURE IS A KEY FAcTOR IN GROWTHAND THE FIGHT AGAINST POVERTY. ENERGY IS THE MAIN cHALLENGE TODAY,

ESPEcIALLY IN SUb-SAHARAN AFRIcA.

Connect and Provide Access

ReAd mORe AbOUT This pROjecT AT WWW.pROpaRcO.fR

PROPARCO financed

a satellite projectfacilitating connections

in remote areas

of Africa.

jAmAicA

household electricity bills in jamaica are one of the highest in Latin America and the caribbean. To face current and future demands, the electricity transport and distribution company jps has put into place a vast investment plan with the aim of diversifying the

energy mix, renewing infrastructure and improving energy efficiency assets. by supporting jps (through a Us$60.5m loan) at a time of grave economic crisis in jamaica, pROpARcO fully played out its countercyclical role leading other investors.

Improve electricity services

37


in Africa, pROpARcO seeks to provide more depth to the financial markets and the banking sector in order to develop the financial sector via equity stakes in local banks, long-term re-financing lines, the development of leasing , equity stakes in rating agencies, guarantees in the con-text of market transactions by private issuers, etc.In emerging countries where the develop-ment of financial markets is already a real-ity, PROPARcO uses the banks as a vector for funding in order to obtain more overall objectives such as the fight against pov-erty, climate change or food safety.

In 2010, PROPARcO signed 35 projects for a total of €521M in favour of financial institutions (banks and microfinance insti-tutions), in the form of loans and equity stakes.

In particular in African markets, PROPARcO’s support is crucial because it represents almost 40% of its activity. This year, PROPARcO has notably financed four projects in West Africa, including a leasing institution in Mauritania, increased capital participation in a pan-African bank-ing group and one of its subsidiaries in congo and also a loan to one of the leading Nigerian banks.This year confirms the growth in equity activity with nearly €45M of equity or rein-forcement of financial institutions’ capital. Regarding its equity in one of the leading Lebanese banks, the aim is to forge strategic partnerships with leading regional actors.

ENcOURAGING bANKS TO MAKE LONG-TERM INVESTMENTSFOR bUSINESS IS A PRIORITY.

THIS ObJEcTIVE IS AT THE HEART OF PROPARcO’S MISSION.

No developmentwithout banks

ReAd mORe AbOUT This pROjecTAT WWW.pROpaRcO.fR

Give womenthe means to succeedin Kenya, women are excluded from the financial running of the household even though the majority of Kenyans still do not have access to any formal financial system. KWFT, the largest microfinance institution in Kenya, has been created by women for women - 100% of its clients. it covers large rural areas in remote regions. To support the development of this key player and to protect it from exchange rate risks, pROpARcO, alongside the agricultural Fondation Grameen bank crédit Agricole, has awarded it a loan in local currency amounting to Kenyan shillings 626m (€5m equivalent).

Support to microfinance institutions will enable almost

access300,000

peopleto microcredit.

KeNyA

3 8


pROpARcO finances business projects which have a significant and long lasting effect on the development of countries where they take place. PROPARcO assists all players, be they local entrepreneurs contributing to job creation or the sharing of know-how and tech-nology, regional groups wishing to improve their governance and expand their activity or large international industrial groups keen to locate in a risky region.In 2010, corporate funding reached €149M. Said funding was char-acterised by the support given to a new South-South deal-flow which reflects the interest of entrepreneurs for the African market and by the establishment of long term capitalistic partnerships with large French or international industrial groups.Food safety and the growth of consumer markets (particularly in Africa) make support for the agro-industrial sector a priority.

Thus in 2010, PROPARcO financed a sugar producing company in brazil and a French company engaged in the fight against child mal-nutrition in the world.In 2010, PROPARcO also confirmed its position as a leader in the development of sustainable tourism. To incite tour operators to propose entreprising projects, PROPARcO has elaborated an inno-vative social and environmental strategy which applies to all projects financed in this sector.Finally, PROPARcO has supported the development of the social sector ranging from the forestry and building materials industries in India and sub-Saharan Africa (by investing in two cement groups for example) to the modernisation of a hospital in brazil.

bUSINESSES PLAY AN ESSENTIAL ROLE IN DEVELOPING EcONOMIES AND YET THEY HAVE LIMITED AccESS TO FINANcIAL RESOURcES.

Southern Entrepreneurs

Entrepreneurs au Sud

Child malnutrition affects 195 million children and causes the death of 3 million under five year olds every year. Nutriset, a French SME based in Normandy founded in 1986 has developed a range of innovative therapeutic foods such as Plumpy’ Nut.To promote access to vulnerable populations, PROPARCO has assisted Nutriset in the trans-

ferral of its production to Southern countries through a network of franchised businesses. In addition to increased local production, this transfer is also intended to increase local agro-industrial (peanuts, sugar, oil etc.). In terms of impact, it will enable the treatment of almost 5 million children, create 750 jobs in 5 years and open three new production units per year.

Malnutrition: progress and innovation


a year to be treated.

Plumpy' Nutwill allow

5 millionchildren


3 9

H i sTO i R e d e p RO j eT

3 9

Denis Sireyjol, Investment Officer specialized in corporate funding at PROPARCO“The cement industry, highly capitalistic, requires important finan-cial sums. The International Finance Corporation (IFC) requested our participation in the total capital increase of US$180M in the African subsidiary of HeidelbergCement. The majority of cement markets in sub-Saharan Africa suffer from limited local production which in turn requires a high level of imports, causes low competition and rising prices.

This situation restrains the development of small infrastructure and building programmes, vital to the high population growth of this region. This funding follows our intention to support the cement industry so long as it in turn contributes to the development of the local economy whilst respecting strict environmental standards. ”

The building of infrastructure and housing is crucial to the economic and social development of sub-saharan Africa. heidelbergcement is one of the best established cement manufacturers in Africa: Togo, benin, Ghana, sierra Leone, Liberia, Tanzania, Gabon and the democratic Republic of congo. This German company listed on the Frankfurt stock exchange has committed itself to a social and environmental management strategy which respects the highest environmental standards in this sector.in order to continue to develop its African activities, to finance the extension and construction of new or existing cement factories and to improve the environmental impact of these, heidelbergcement has increased the share capital of its

holding which regroups its African subsidiary, scancem international ANs.This project is in line with pROpARcO’s strategy of supporting the cement industry so long as it in turn contributes to the development of infrastructure and housing programmes and respects strict environmental standards. pROpARcO subscribed to the capital increase of scancem international ANs for an amount of Us$35m as long term support for its activity in Africa.

“Thanks to this partnership, HeidelbergCement has secured funding for the development of its local ce-ment capacity in Africa. We bring to the table our long experience in the building materials industry but also our governance and policy towards ethi-cal environmental management. The funding pro-gramme will encourage infrastructure and housing development, job creation and improvements in environmental standards."

General Director of HeidelbergCement

PROPARcO SPOKESPERSON

Finance the development of an accountable cement manufacturerRESPOND TO DEMOGRAPHIc, cLIMATIc AND GROWTH cHALLENGES.

Sub -Saharan afric a / heidelbergcement

“Develop infrastructures".

HEIDELbERGcEMENT SPOKESPERSON

Dr Bernd Scheifele

“Support an industry which contributes to the development of the local economy.”

T e l l i n g O u R sTO Ry



PROPARCO has invested

which have in turn financedthe development of 248 businesses.

€120Min 19 funds,

PROPARCO only offers

for a duration of 5 to 20 years.

long-term loans

A range of

diverse loans:senior, junior, subordinated,

participative.

PROPARCO was oneof the pioneers of

denominatedsolutions.

local currency

Long-term

4 2

A N N UA L R E P O RT 2 0 1 0 P RO PA RcO LO N g -T e R M

PROPARCO’s direct and indirect equity investments reached an historic level of €204M in 2010, a 129% increase since 2009. Sixteen direct investments occurred this year of which two were of significant value (US$30 and 35M), one in a lead-ing Lebanese bank and the other in the African holding of an international cement manufacturer. Both these investments reflect PROPARcO’s strategy in this area: support large groups by forging capital-based alliances in local subsidiaries or holdings in order to contribute to economic development whilst at the same time promoting strict environmental, social and govern-ance standards.

PROPARcO also supports capital-investment, in particular in the Mediterranean region. This activity enables it to enhance the impact of its funding by supporting a large number of com-panies in various sectors and by creating management teams trained to the highest level of governance. In 2010, PROPARcO invested €120M in 19 funds which have in turn financed the development of 248 businesses.In 2010, 60% of direct and indirect equity investments took place in sub-Saharan Africa thereby supporting key sectors for this region’s development: small and medium entreprises (SMEs), agro-industry, basic infrastructure and microfinance.For its second year of operation, FISEA - the Investment and Support Fund for Businesses in Africa managed by PROPARcO - has supported 14 high impact projects in risky regions or sectors. These investments will, for example, improve health care serv-ices in Africa, access to microinsurance for low-income families and SME development. Throughout the past two years, FISEA has assisted 78 businesses and created or maintained 4,658 jobs.

FAcING REDUcED RESOURcES, BUSINESSES AND BANKS ARE LOOKINGFOR ALTERNATIVE FUNDING. PROPARcO MAKES DIREcT EqUITy INVESTMENTS

AS wELL AS INDIREcT INVESTMENTS ThROUGh FUNDS.

Equity stakes

took placein sub-Saharan Africa.

60% of equity investments

LebANON

Equity and regional integrationLebanon today is considered as a financial platform for the region. Lebanese banks, which enjoy both depositors’ confidence and a rapidly growing marketplace, are expanding more and more, specifically in the Mediterranean zone and Africa. PROPARCO wishes to accompany this development as

a factor in regional integration by providing both alternative and long-term resources.In 2010, PROPARCO thus invested US$30M as capitalin byblos bank.Such an investment helps to attract other private international players and thereby mobilise necessary capital for byblos bank.

ReAd MORe AbOUT ThIS PROjeCT AT www.pROpaRcO.fR

4 3


PROPARCO’s activity is comple-mentary to that of local and inter-national commercial banks. Thus, PROPARcO occupies niche funding otherwise abandoned by the local banking system and adapts its offer to each market.

PROPARcO only offers long-term loans, rarely offered by local banking systems. These loans can range from €5M to €100M for a duration of 5 to 20 years.Since 2007, PROPARcO benefits from a sub-participation agreement with the AFD, enabling it to signifi-cantly increase the amount of the loans it offers. In 2010, 10 projects benefitted from AFD participation. Two projects also benefitted from a co-funding or a shared-risk strategy with other European or international financial development institutions.PROPARcO has thus been able to develop over the past few years a range of diverse loans - senior, junior, subordinated, participative - denominated either in foreign or local currency.

PROPARcO IS A LONG-TERM INVESTOR. IT ADAPTS ITS LOAN OFFERTO EAch MARKET IN ORDER TO PROVIDE LONG-TERM SUPPORT

TO AccOUNTABLE PARTNERS.

Long-term loans

The development of renewable energy is a priority in the fight against climate change, specifically in large emerging countries such as India. This development requires long-term resources which are rarely accessible to banks and entrepreneurs. ICICI bank, the first private Indian bank, founded as a result of a joint World bank, Indian government and Indian industrialists initiative, owns an impressive portfolio of energy efficiency and renewable energy projects. To finance these projects in the long termand in foreign currency, ICICI turned to PROPARCO who provided a dedicated credit line of €36.5M. Other than financing exemplary environmental projects, this loan will increase energy supplies and diversify the energy mixaccording to the Indian government objectives.

PROPARCO’s loansrange from

for a durationof 5 to 20 years.

€5 to 100M


INdIA

Long-term resourcesfor renewable energy

4 4


FOR SEVERAL yEARS, PROPARcO hAS DEVELOPED LOcAL cURRENcy OFFERSTO AVOID EXchANGE RATE RISK FOR ITS cLIENTS.

Reduce exchange rate risk

Providing local currency loans enables clients to avoid exchange rate risk, sometimes impossible to manage.PROPARcO, one of the pioneers of local currency denominated solutions in its countries of intervention, works in collaboration with other donors to deepen local currency markets. Over and above its guarantee operations, since 2007 PROPARcO has used a device

called TcX which facilitates its local currency loan offers. TcX is a multi-donor fund allowing investors to hedge the exchange rate risk instead of people on the ground. This device is heavily oriented towards activities which generate local currency revenue, notably microfinance. In 2010, thanks to TcX, PROPARcO was therefore able to make an offer in shillings to the largest microfinance institution in Kenya and in pesos to a microfinance institution in the Dominican Republic. PROPARcO also has at its disposal resources in local cur-rency which it borrows directly from commercial banks and via the intermediary of the AFD.In 2010, PROPARcO was therefore able to offer its clients funding in cFA Francs (XAF), in Kenyan shillings (KES), in Dominican pesos (DOP), in South African Rand (ZAR) and in Peruvian nuevos soles (PEN).

Mobile phone development in Chad is one of the fastest growing in Africa. With only 19,000 land lines in Chad, 2.2 million people have chosen the mobile phone, both for its price and ease of use. In order to assist Millicom Tchad, the leading phone operator in the country, to meet the increasing client demand, PROPARCO has participated in the financing of the extension and densification of the existing network. This CFA Francs 6 billion loan (€9M equivalent), the first of its kind in the region, will enable Millicom to carry out the necessary investments without the risk of exchange rate fluctuation. between now and the end of 2011, Millicom should double the number of its subscribers and cover 30% of the country.

In 2010, PROPARCO offeredits clients funding

in 8 different local currencies.

ChAd


A loan in CFA Francsto extend mobile phone coverage


4 5

h i sTO i R e d e p RO j eT

4 5

Emmanuel Haye, PROPARCO’s representative in Tunisia“The Kantara Fund, managed by the Amundi group, made us an of-fer to take an equity stake in Unimed. We responded positively to this request as this operation fell in line with PROPARCO’s strategy for the Mediterranean zone: to support the pharmaceutical industry, one of the main growth sectors in Tunisia with high development impact, that is financial access to medicines and the structuring of a key sector for qualified job creation. Supporting this medium sized family business should help it to overcome several challenges: structure its governance

and reinforce its management teams, pursue the development of its production unit, develop the regional market. In accompanying an en-trepreneur who has develop an attractive business models, PROPARCO wishes to assist him to continue the structuring of his company to en-sure its sustainability and its entry onto the stock exchange. Alongside Kantara, we wish to put our commercial network to Unimed’s benefit so that it may seize all regional growth opportunities.”

Tunisia is one of the only Maghreb countries to have developed a successfull pharmaceutical industry; today, it provides more than 50% of medecines to the domestic market. This industry must now continue its development by modernising , increasing its production capacity, broadening its range, innovating and seizing international opportunities. Unimed is seen as a reference in the region both for the production and commercialisation of generic medicines to international standards. It has achieved this position by constantly improving its production capacity and product quality, whilst also putting into place production processes which meet international standards, notably regarding the environment.To assist in its development, PROPARcO

took a 34% equity stake alongside the investment fund Kantara, managed by the Amundi group. with this investment, PROPARcO has chosen to support the growth of a company developing its domestic and regional market, a company which is both innovative and environmentally conscious. This project contributes to the structuring of a strategic sector for Tunisia and also facilitates financial access to medicines.

“PROPARCO’s equity stake alongside Kantara in Unimed is aimed at our next stage of growth, twenty years after our creation. Whilst continuing to consoli-date our gains, we intend to seize all external growth opportunities in export markets and thereby apply our strategy for international development. For us, this means reinforcing our presence in North and West Af-rica, both of which today represent significant shares of our activity. This will enable us to position ourselves as a reference in the Maghreb region, either as a labo-ratory manufacturing generics under our own trade mark or as a subcontractor for large international groups. PROPARCO and Kantara’s joint interven-tion will consolidate our competitive advantage and specifically reinforce our policy of innovation through research and development.”

President and CEO of Unimed

PROPARcO’S SPOKESPERSON

Facilitate access to generic medicinesSUPPORT ThE PhARMAcEUTIcAL INDUSTRy TO SUSTAINITS INTERNATIONAL cOMPETITIVITy.

TUNISIA / Unimed

“Consolidate our gains."

UNIMED SPOKESPERSON

Ridha Charfeddine

“Support a sector ripe for development.”

T e L L i N g O u R sTO Ry


Profitability

4 8

a n n ua l r e p o rt 2 0 1 0 p ro pa rco P ro f i ta b i l i t y

For the 2010 fiscal year, the total amount of commitments (deals signed) for PROPARCO either through loans, equity and other securities reached €943.5M or 6% more than in 2009 (€894M). this includes €47.6M in equity commitments for the Investment and Support Fund for Businesses in africa (FISea), held by aFD and managed by proparco. Building on the constant increase in activ-ity in past years, proparco continued to grow in 2010, specifically due to dynamic equity activity.

proparco’s portfolio stands at 2.1 billion euros as of December 31, 2010, that is 31% more than on December 31, 2009. this growth chiefly benefitted sub-Saharan africa which remains the main inter-vention zone for proparco and concentrates 34.6% of the com-pany’s total loans and equity portfolio.

2010 Operating results

Portfolio per geographical zone - loans and equity (as % of total portfolio) as of December 31, 2010

34.6%Sub-SAhARAn AFRiCA

23%MediteRRAneAnAnd Middle eASt

16%ASiA

13.2%lAtin AMeRiCAAnd CARibbeAn

9.7%OveRSeAS teRRitORieS

3.5%Multi-COuntRieS

Commitments (deals signed) per product 2006-2010 (in €M)

PROPARCO lOAnS And GuARAnteeS (FOReiGn StAteS)

FRenCh OveRSeAS teRRitORieS

FiSeA

AFd Sub-PARtiCiPAtiOnS

thiRd-PARty lOAnS

equity

OtheRS27

54

135

97

4029

4176

5532

24

252 244

48

263

893in 2009

944in 2010

467in 2008

357in 2007

261in 2006 60

202

586

156

5

125

570

3010

24

4 9


FiSeA’s fund which operates exclusively in sub-Saharan Africa underwrote fourteen projects in 2010 for a total of €47.6M.Here is the breakdown of these investments: Six investments in pan-african investment funds for a total of €40.4M

in the micro-insurance, microfinance, health care and SMe sectors.

Four direct investments for a total of €6.7M in the agro-industrial industry (Kenya, Madagascar) and in microfinance (Ivory coast, Multi-countries).

Four technical assistance projects for a total of €0.5M.

in 2010, PROPARCO signed up twenty-one investment projects for a total investment volume of €156.3M (versus €53.9M in 2009); an average of €7.4M per investment.Here is the breakdown of 2010’s activity: ten direct investments (versus eight in 2009) for a total of €76.5M;

an average of €7.6M per project. Sub-Saharan africa benefit-ted from eight projects: one multi-sector/multi-country and seven others in the banking sector (tanzania, Djibouti, Mauritius, Democratic republic of congo, Multi-countries) and in tourism (Kenya). the Mediterranean and the Middle east zone benefitted

from two projects, one in the banking sector (lebanon) and one in health care (tunisia).

eleven investments in investment funds (versus five in 2009) for a total of €79.8M; an average of €7.3M per project. nine of these were in generalised investment funds operating in sub-Saharan africa, the Mediterranean and the Middle east, asia and latin america. the remaining ones concerned two funds specialised in the Infrastructure sector operating in the Mediterranean and the Middle east zone.

the gross value of PROPARCO’s equity portfolio (including third-party transactions) stands at €405.3M as of December 31, 2010. this portfolio regroups one hundred and five bonds in fourteen credit institutions, fifty-four investment funds, eighteen financial institutions and insurance companies, nine industrial and commercial companies, four hotels, five infrastructure and mining companies and one cement manufacturer.

the total provisions for these investments stands at €12.2M, or 3% gross of the portfolio and 5% of paid subscriptions (excluding shares held on behalf of third-party).the paid subscriptions (including third-party) reached €247.9M as of December 31, 2010 compared to €185.7M as of December 31, 2009.the charts below demonstrate the breakdown per geographical zone and sector of paid subscriptions.

Furthermore, in 2010 two transactions in other securities (including convertible bonds) were commited for a total of €5.5M.

Equity investments

Equity portfolio per sector (in % terms of paid subscriptions) as of December 31, 2010

Equity portfolio per geographical zone(in % terms of paid subscriptions) as of December 31, 2010

44.2%inveStMent FundS


24.6%MediteRRAneAnAnd Middle eASt

18.5%ASiA

1.3%lAtin AMeRiCA And CARibbeAn2.2 %OveRSeAS teRRitORieS

27.7%Multi-COuntRieS

35.5%FinAnCiAl SeCtOR

13.3%CORPORAte

7%inFRAStRuCtuRe

FISEA’s investment lines in 2010

PROPARCO’s equity investment lines in 2010

PROPARCO’s equity portfolio as of December 31, 2010

Miscellaneous

5 0


throughout 2010, forty one loans have been authorised for a total volume of €734.1M (versus €801.8M in 2009), that is an average of €17.9M per facility. this amount includes

€124.5M in sub-participations for aFD and €23.9M for external third-party. Furthermore, total loan disbursements reached €553.1M (versus €500.4M in 2009).

Breakdown by sectorin 2010, loans signed with credit institutions reached €458.1M (versus €337.8M in 2009) and represent 63% of total loan com-mitments (versus 42% in 2009).loans commitments in the infrastructure and mining sector reached €149.8M (versus €255.7M in 2009) and represent 20%

of total commitments (versus 32% in 2009).loans commitments in the corporate sector reached €126.1M (versus €208.3M in 2009) and represent 17% of total loan signa-tures (versus 26% in 2009).

Geographical breakdownloans have been granted to twenty-two foreign countries, where India is the leader (€64M), followed by turkey (€61.5M), Mauritius (€50M), Brazil (€48.6M), South africa (€48.5M) and Jamaica (€46.4M). these figures do not include multi-country signatures.

In 2010, sub-Saharan africa remains the leading deployment area with 41% of all loan commitments. the most significant opera-tions concern banks in South africa, nigeria and Mauritius.

15.2%ASiA

10.5%MediteRRAneAn And Middle eASt

41%Sub-SAhARAn AFRiCA


Loan Activity

Commitments and disbursements in 2010

Find theSe FiGuReS On www.ProParco.fr


17% CORPORAte

20%inFRAStRuCtuRe

63%FinAnCiAl SeCtOR

Loan commitments per sector (in % terms of loan signatures) in 2010

Loan commitments per geographical zone (in % of total loan signatures) in 2010

5 1


Geographical breakdownSub-Saharan Africa and the Mediterranean and Middle east zone remain the main beneficiary areas of lending activity, with 35.8% and 22.8% respectively of total outstanding loans.the main beneficiary countries of outstanding loans (exclud-ing overseas territories) are, in decreasing order: turkey, Brazil, South africa, Vietnam and Kenya. these five countries alone reach approximately 30% of outstanding foreign country loans.

Breakdown by sector Gross outstanding loans (including third-party loans) total €1,856.4M as of December 31, 2010 (versus €1,419.9M as of December 31, 2009). outstanding loans to credit institutions represent 53.1% of

total outstanding loans as of December 31, 2010. this con-sists of one hundred and fifty two loans awarded to seventy clients for a total sum of €986.3M (versus €774.9M as of December 31, 2009).

outstanding loans to non-financial institutions represent 46.9% of total outstanding loans as of December 31, 2010. this consists of one hundred and eighteen loans to eighty three clients for a total sum of €870.1M (versus €645M as of December 31, 2009). these loans are divided between the infrastructure and mining sector (€551.6M) and the corporate sector (€318.5M).

29.7%inFRAStRuCtuRe

53.1%FinAnCiAl SeCtOR

17.2%CORPORAte

Outstanding loans portfolio as of December 31, 2010



22.8%MediteRRAneAnAnd Middle eASt

15.7%ASiA


10.7%OveRSeAS teRRitORieS

0.2%Multi-COuntRieS

Outstanding loans per geographical zone(in % total) as of December 31, 2010

Outstanding loans per sector (in % total) as of December 31, 2010Find theSe FiGuReS On www.ProParco.fr

5 2


2010 Financial statements

FINANCIAL INSTITUTIONS 1 0

RECEIVABLES FROM FINANCIAL INSTITUTIONS 1 252 572 1 076 150

SHORT-TERM 60 282 47 368

Related parties 59 290 46 439

On behalf of third parties 993 929

LONG-TERM 1 192 290 1 028 782


LOANS TO NON-FINANCIAL INSTITUTIONS 866 025 637 306

On behalf of third parties 34 596 34 138

BONDS AND OTHER FIXED INCOME SECURITIES 14 734 10 364

INVESTMENTS AND OTHER LONG-TERM SECURITIES 393 136 253 432

On behalf of third parties 15 491 470

INTANGIBLE ASSETS 4 4

PROPERTY, PLANT AND EQUIPMENT 1 671 1 909

OTHER ASSETS 2 009 1 305

PREPAYMENTS AND ACCRUED INCOME 7 613 4 156

Related parties 1 861 405

TOTAL ASSETS 2 537 765 1 984 626

ASSETS 31 dec. 2010 31 dec. 2009

BORROWINGS OWED TO FINANCIAL INSTITUTIONS 1 743 671 1 296 355

SHORT-TERM 11 445 462

Related parties 11 445 462

LONG-TERM 1 732 226 1 295 893

Related parties 1 730 596 1 292 093

OTHER LIABILITIES 202 729 119 676

On behalf of third parties 41 225 35 369

PREPAYMENTS AND ACCRUED INCOME 11 708 11 370


PROVISIONS 44 782 32 529

EQUITY 534 875 524 696

CAPITAL SUBSCRIBED 485 330 485 330

including issuance premium 65 281 65 281

LEGAL RESERVE 4 170 2 990

RETAINED EARNINGS 26 939 12 783

INCOME FOR THE YEAR 18 436 23 593

TOTAL LIABILITIES 2 537 765 1 984 626

LIABILITIES 31 dec. 2010 31 dec. 2009

Balance sheet as at 31 December 2010 (thousands of euros)

5 3


INTEREST AND SIMILAR PRODUCTS 85 496 73 769

ON OPERATIONS WITH FINANCIAL INSTITUTIONS 45 566 44 515


ON OPERATIONS WITH NON-FINANCIAL INSTITUTIONS 38 811 29 255

ON BONDS AND OTHER FIXED INCOME SECURITIES 1 119 -1

INTEREST AND SIMILAR CHARGES -42 303 -39 308

ON OPERATIONS WITH FINANCIAL INSTITUTIONS -42 303 -39 308

Related parties -42 072 -39 174

INCOME FROM VARIABLE INCOME SECURITIES 7 886 6 435

FEE INCOME 15 832 11 566

FEE EXPENSE -618 -466

OTHER BANKING OPERATING INCOME ITEMS 519 0

OTHER BANKING OPERATING EXPENSE ITEMS -8 -440

NET BANKING INCOME 66 804 51 556

OTHER ADMINISTRATIVE EXPENSES -25 710 -22 353

Related parties -17 366 -15 490

ALLOCATION TO DEPRECIATION & AMORTISATION -412 -326

GROSS OPERATING INCOME 40 682 28 877

COST OF RISK -11 073 -3 551

OPERATING INCOME 29 609 25 326

GAINS OR LOSSES ON PROPERTY AND EQUIPMENT 2 000 7 350

INCOME FROM ORDINARY ACTIVITIES BEFORE TAX 31 609 32 676

EXCEPTIONAL ITEMS 192 -256

CORPORATE INCOME TAX -13 364 -8 827

NET INCOME 18 436 23 593

INCOME STATEMENT 31 dec. 2010 31 dec. 2009

Income statement as 31 December 2010 (thousands of euros)

w

Appendices

Amélie JULY Marie-Hélène LOISONDeputy: Christophe SCALBERT

Jean-Pierre BARRALDeputy: Emmanuelle MATZ

Hélène TEMPLIERDeputy: Jean-Baptiste SABATIE

Marianne SIVIGNON-LECOURT

Deputy: Chrystelle GUERIN

Marie SENNEQUIERDeputy: Cécile COUPRIE

AssistantSofia BASHIR

Stéphanie LANFRANCHIDeputy: Guillaume BARBEROUSSE

Investment Officers

Bérengère BASSETJean-Nicolas BEASSE

Jean-Sébastien BERGASSEMyriam BOUSLAMA

Laurent FARGEDelphine FRENOUX

Rahim HARISLaureen-Astrid KOUASSI

Elodie PARENTEmilie PASCALMaria PENANahed SAAB

Administrative Officer

Nouara CHADER

Investment Officers

Jérémy CEYRACKamal DADI

Isabelle LAURENCINMathieu LEBEGUEAdeline LEMAIRE

Guillaume MORTELIERAnne-Sophie RAKOUTZ

Pierre ROUSSEAUMatthew SAVILLE

Aglaé TOUCHARD


Sandra GIRARDPhilippe HUMBERT-DROZ

Investment Officers

Xavier DARRIEUTORTCharlotte DURAND

Alan FOLLMARJérôme GASTAUD

Nataliya KLYMENKOAlice LUCAS

Véronique PESCATORIGregor QUINIOUNathalie YANNIC

Imane AKALAY (détachée SFI)

Investment Officers

Marie-Violaine BIANCARELLIDorothée DECKERT

Jean-Benoît DU CHALARDIskander EZZERELLI

Alexandra GEORGANDASReza HASSAM DAYAAstrid JARROUSSEManuel MARTINSOlivia REVEILLIEZDidier ROUSSEL

Mathieu SOLONELDanièle THEZE

Administrative Officers

Annie DESCOINSDiane NGO

Corporate Lawyers

Antoine ALISONChristine AVRIL POTTIER

Christel BOURBON-SECLETEmilie CANAVESEMarianne CESSAC

Fariza CHALALDavid FARDEL

Olivier FOURCADESandrine GAUPeter GLAUSE

Marie MOULINSophie VERMOREL


Pascale DENISEValérie MARCUS

Delphine QUEFFELEC

Investment Officers

Amélie BINETJérémy BRAULT

Mathieu BRELETCédric MARTIN


Didier AMIOTNicole ARTICO

Maïté CHAPRONEvelyne WAGNER

Communication

Benjamin NEUMANN Fanette BARDIN

Catherine LEPERE

Technical assistance

Cyril RENAULT

Carbon Finance

Loïc BATEL

Environment , Social & Impact

Odile CONCHOUJeanne HENIN

Justine PLOURDE- DEHAUMONT

Organisation & IT support

Marie-Paule SIMONNET

Investment Officers

Guédi AINACHEMyriam BRIGUI

Nicolas CEZARDCaroline POUJOL

Anne RORETThomas SKURTISDenis SIREYJOL

Guillaume THOME


Thi Kim HOANG TRONG

Étienne VIARDAssistant

Ia GEBAROWSKI

CHIEF ExECUTIVE OFFICER

Laurent DEMEYDeputy: Jérôme BERTRAND-HARDY

Assistant: Flora TOTA

DEPUTY CHIEF ExECUTIVE OFFICER

BangkokPierre-Alain PACAUD

BeijingArianne DUCREUX

CairoThomas ELOY

São PauloChristophe BLANCHOT

Mexico CityMatthew SAVILLE

CasablancaAmaury MULLIEZ

NairobiGhislain de VALON

TunisEmmanuel HAYE

JohannesburgSophie LE ROY

AbidjanJulien LEFILLEUR

New DelhiEmmanuelle RIEDEL DROUIN

LagosINTERNATIONAL NETwORk

Banks & Capital Markets Private Equity

Infrastructure & Mining

Credit & PortfolioDivision Legal Division

Finance &Administration

DivisionCross-Functions Cross-FunctionsCorporate

Philippe BASSERY

Assistant: Flora TOTA

DEPUTY CHIEF ExECUTIVE OFFICER

AssistantMarie-Thérèse ROCHE

AssistantSarah EON

AssistantElisabeth NGUYEN

AssistantBetty LHOMMEE

AssistantAnita PEREZ

Assistant Catherine MURE

AssistantSophia BASHIR

AssistantIsabelle GILLET

A professional and committed teamMay 1, 2011

Project commitments in 2010Brazil Agro-industry

Health CareInvestment program funding for sugar and ethanol producing companyLoan awarded to assist finance for hospital expansion and modernising

BusinessBusiness

US$50MUS$15M

Chad Telecommunications Loan to finance the extension of network coverage for a mobile phone operator Business FCFA 6Bn

China Finance Investment fund participation in clean energy and health care sectors Investment fund US$8M

Comores Islands Banking Credit line awarded for long-term refinancing activities Banking institution $4M

Djibouti Banking A stake in the takeover of a local bank by an African banking group Banking institution US$6.6M

Dominican Republic

BankingBanking

Credit line intended to finance the credit activity for exporting companiesCredit line intended to finance the credit activity for exporting companies

Financial institutionBanking institution

US$25MDOP175M

DRC Banking Participation in the setting up of a banking group subsidiary Financial institution US$2M

France Telecommunications Financing cash flow needs for a telecommunications company in overseas territories Business $3.46M

IndiaBankingFinanceIndustry

Loan awarded to finance the expansion and operation of a cement factoryParticipation in a fund dedicated to microfinanceLoan awarded to finance the expansion and operation of a cement factory

Financial institutionInvestment fundBusiness

$36.5MUS$7M$27.5M

Ivory Coast Microfinance Equity participation in a microfinance institution developping microcredit for urban SMEs Financial institution $0.8M

Jamaica Energy Funding for investment of a production company, transport and distribution of electricity Business U$60.5M

Kenya

Agro-industryBankingMicrofinanceTourisme

Loan and equity to sustain a Fair Trade labelled horticultural business Credit line and subordinated debt for bank's expansionLoan to support portfolio development of loans to microentreprisesStake in a company in a growing hotel group

BusinessBanking institutionFinancial institutionBusiness

$2.5MUS$15MKES626MKES638M

Lebanon BankingBanking

Tier II subordinated loan dedicated to building long-term ressources of a bankParticipation in the increase of bank capital

Financial institutionBanking institution

US$21.1MUS$30M

Madagascar Agro-industry Equity investment designed to support high quality production of a fish farm Business $1.5M

Mauritania Finance Dedicated credit line to re-finance the loan portfolio of a leasing company Financial institution $2M

Mauritius BankingBanking

Credit line awarded for long-term refinancing activitiesStake in expansion phase

Banking institution Banking institution

$50MMUR157M

Mexico Energy Funding for construction and expansion of a wind farm Business US$35M

Mozambique Banking Credit line awarded to support bank's growth Banking institution US$20M

Nicaragua Energy Loan awarded to finance the expansion of a geothermal station Business US$18.9M

Nigeria Banking Credit line awarded for long-term financing activities Banking institution US$50M

Peru BankingBanking

Loan awarded to finance the activity of a microcredit bankCredit line dedicated to funding agricultural and agro-industrial activities

Banking institutionBanking institution

PEN26MUS$15M

Senegal Transports Funding the improvement and expansion of a container port Business $16.25M

South Africa BankingFinance

Balance sheet line enabling bank's portoflio expansionCredit line awarded to microlending institution

Banking institutionFinancial institution

$40MZAR75M

Sri Lanka Banking Credit line to finance the economy in post-conflict regions Banking institution $10M

Tanzania Banking Participation in a bank takeover to strengthen an East African banking group Financial institution US$5.3M

Tunisia Health Care Equity investment in a pharmaceutical industry to finance its investments Business $5M

Turkey BankingEnergy

Credit line destined to finance renewable energy and energy efficiency projectsLoan for wind farm funding

Banking institutionBusiness

$50M$11.5M

Uganda BankingBanking

Credit line awarded for long-term refinancing activitiesCredit line awarded for long-term refinancing activities

Financial institutionFinancial institution

US$30MUS$15M

VietnamBankingBankingTransports

Credit line awarded to support bank's growthCredit line to finance SME's credit activityLoan to finance the construction of a container terminal

Banking institutionBanking institutionBusiness

US$15MUS$20MUS$15M

Multi-countries

Agro-industryBankingBankingBankingBankingFinanceFinanceFinanceFinanceFinanceFinanceFinanceFinanceFinanceFinanceFinanceIndustryInfrastructureMicroinsuranceMicrofinanceMicrofinancePMEPMEHealth CareHealth CareTelecomunications

Equity investment designed to enhance African farming communities' equityParticipation in capital increase of African banking groupCredit line dedicated to funding projects fighting global warmingLoan to finance the expansion of a bank's portfolioCredit line used to refinance the portfolio of a private sector bank in Central AmericaLoan awarded to a finance company for capital finance of professional equipment in AfricaContribution to project funding techniques with European Development InstitutionsParticipation in funding techniques for projects dedicated to the fight against climate changeParticipation in an investment fund in North and West AfricaParticipation in a fund specialising in infrastructure in North and West AfricaParticipation in a general fund investing in West African SMEsEquity investment in a fund investing in North Africa and Middle EastEquity investment in a fund investing in North and East AfricaEquity investment in a fund investing in North Africa and Middle East SME'sEquity investment in a fund investing in Latin AmericaCreation of a regional fund dedicated to the MediterraneanParticipation in capital increase of a cement group in sub-Saharan Africa Equity investment in a fund specialising in infrastructure in AfricaEquity investment in a fund destined to improve the supply of microinsurance in AfricaEquity investment in a fund developing a network of microfinance institutions in sub-Saharan AfricaEquity investment in a fund supporting local financial systems in sub-Saharan AfricaEquity investment in a fund favouring SME funding for crisis emerging countriesEquity investment in a fund financing SMEs in the environmental, health care and education sectors in AfricaFinancing a company developping products to fight against child malnutritionEquity investment in a fund investing in the health care sector in AfricaLoan to finance satellite construction providing broadband access to Internet

Investment fundBanking institutionFinancial institutionFinancial institutionBanking institutionFinancial institutionFinancial institutionFinancial institutionInvestment fundInvestment fundInvestment fund Investment fundInvestment fundInvestment fundInvestment fundInvestment fundBusinessInvestment fundInvestment fundInvestment fundInvestment fundInvestment fundInvestment fundBusinessInvestment fundBusiness

$7.2M$2.9MUS$10MUS$15M$67.1MUS$3.7M$20M$30M$2M$8M$10MUS$2.5MUS$7.5MUS$7.5MUS$15M$15MUS$35MUS$10M$3.7M$2M$11.6M$2.8M$8M$2M$7.5MUS$20M

Country Sector PROPARCO Projects (including FISEA) Beneficiary Amount

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A N N UA L R E P O RT 2 0 1 0 P RO PA RCO A p p e n d i c e s

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

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

AccraGHANATel.: (233) 302 77 87 55Fax: (233) 302 77 87 [email protected]

Addis AbabaETHIOPIA, ERITREA,SUDAN, SOMALIATel.: (251) 11 442 59 01/02/03Fax: (251) 11 442 59 [email protected]

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

AmmanJORDANTel.: (962) 6 46 04 703Fax: (962) 6 46 04 [email protected]

AntananarivoMADAGASCARTel.: (261) 20 22 200 46Fax: (261) 20 22 347 [email protected]

Baghdad IRAQTel.: (964) 781 703 88 [email protected]

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

Bangkok THAILANDTel.: (66) 2663 6090Fax: (66) 2663 [email protected]

BanguiCENTRAL AFRICAN REPUBLICTel.: (236) 21 61 03 06Fax: (236) 21 61 45 [email protected]

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

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

BogotáCOLOMBIATel.: (57) 1 621 [email protected]

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

BrazzavilleREPUBLIC OF CONGOTel.: (242) 281 53 30Fax: (242) 281 29 [email protected]

BujumburaBURUNDITel.: (257) 22 25 59 31Fax: (257) 22 25 59 [email protected]

Cairo EGYPTTel.: (20) 2 2735 17 88Fax: (20) 2 2735 17 [email protected]

Casablanca MOROCCOTel.: (212) 522 29 53 97Fax: (212) 522 29 53 [email protected]

CayenneFRENCH GUIANA, GUYANA, SURINAMETel.: (33) 5 94 29 90 90Fax: (33) 5 94 30 63 [email protected]

ColomboSRI LANkA, MALDIVESTel.: (94) 11 250 23 20Fax: (94) 11 250 52 [email protected]

ConakryGUINEA, SIERRA LEONETel.: (224) 30 41 25 [email protected]

CotonouBENINTel.: (229) 21 31 34 53Fax: (229) 21 31 20 [email protected]

DakarSENEGAL, CAPE VERDE, GAMBIA, GUINEA-BISSAUTel.: (221) 33 849 19 99Fax: (221) 33 823 40 [email protected]

DamascusSYRIATel.: (963) 113 353 741Fax: (963) 113 313 [email protected]

Dar Es SalaamTANZANIA, UGANDATel.: (255) 22 219 88 [email protected]

DjiboutiDJIBOUTITel.: (253) 35 22 97Fax: (253) 35 48 [email protected]

East JerusalemPALESTINIAN TERRITORIES Tel.: (972) 2 54 00 423Fax: (972) 2 54 00 [email protected]

Fort-de-FranceMARTINIQUE, PETITES ANTILLESTel.: (33) 5 96 59 44 73Fax: (33) 5 96 59 44 [email protected]

HanoiVIETNAMTel.: (84) 4 38 23 67 64 / 65Fax: (84) 4 38 23 63 [email protected]

Ho Chi Minh CityVIETNAMTel.: (84) 8 38 24 72 43 / 44Fax: (84) 8 35 20 69 [email protected]

IslamabadPAkISTANTel.: (92) 51 201 15 17Fax: (92) 51 201 15 [email protected]

IstanbulTURkEYTel.: (90) 212 283 31 11Fax: (90) 212 283 31 [email protected]

JakartaINDONESIATel.: (62) 21 29 92 15 00Fax: (62) 21 29 92 15 [email protected]

Johannesburg SOUTH AFRICA,BOTSwANA, LESOTHO,MALAwI, NAMIBIA,SwAZILAND, ZAMBIA,ZIMBABwETel.: (27) 11 540 71 00Fax: (27) 11 540 71 [email protected]

AFD group network

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kabulAFGHANISTANTel.: 93 797 56 22 [email protected]

kinshasaDEMOCRATIC REPUBLIC OF CONGOTel.: (243) 99 86 82 598Fax: (243) 99 99 75 [email protected]

Lagos NIGERIATel.: (234) 1 271 [email protected]

LibrevilleGABON, SÃO TOMÉ ET PRINCIPETel.: (241) 74 33 74Fax: (241) 74 51 [email protected]

LoméTOGOTel.: (228) 221 04 98Fax: (228) 221 79 [email protected]

LuandaANGOLATel.: (244) 222 333 309Fax: (244) 222 372 [email protected]

MamoudzouMAYOTTETel.: (33) 2 69 64 35 00Fax: (33) 2 69 62 66 [email protected]

MaputoMOZAMBIQUETel.: (258) 21 30 43 00Fax: (258) 21 30 37 [email protected]

Mata-UtuwALLIS ET FUTUNATel.: (681) 72 25 05Fax: (681) 72 20 [email protected]

Mexico City MExICOTel.: (52) 55 52 81 17 [email protected]

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

N’DjamenaCHADTel.: (235) 252 70 71Fax: (235) 252 78 [email protected]

NairobikENYA, BURUNDI, RwANDATel.: (254) 20 271 84 52/7Fax: (254) 20 271 79 [email protected]

New Delhi INDIA, BANGLADESH,MALDIVES, SRI LANkATel.: (91) 11 23 79 37 47Fax: (91) 11 23 79 37 [email protected]

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

NouakchottMAURITANIATel.: (222) 525 25 25Fax: (222) 525 49 [email protected]

NoumeaNEw CALEDONIA,VANUATU, SOUTH PACIFIC INSULAR STATESTel.: (687) 24 26 00Fax: (687) 28 24 [email protected]

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

PapeeteFRENCH POLYNESIATel.: (689) 54 46 00Fax: (689) 54 46 [email protected]

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

Pointe-à-PitreGUADELOUPETel.: (33) 5 90 89 65 65Fax: (33) 5 90 83 03 [email protected]

Port-au-PrinceHAITITel.: (509) 22 45 40 07Fax: (509) 22 45 07 [email protected]

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

RabatMOROCCOTel.: (212) 537 63 23 94Fax: (212) 537 63 23 [email protected]

Saint-DenisREUNION, FRENCH SOUTHERN AND ANTARCTIC LANDSTel.: (33) 2 62 90 00 90Fax: (33) 2 62 21 74 [email protected]

Saint-PierreSAINT-PIERRE ET MIQUELONTel.: (33) 5 08 41 06 00Fax: (33) 5 08 41 25 [email protected]

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

Santo-DomingoDOMINICAN REPUBLIC, BAHAMAS, CUBA, JAMAICATel.: (1) 809 547 12 89Fax: (1) 809 381 05 [email protected]

São Paulo BRAZILTel.: (55) 11 25 32 47 51Fax: (55) 11 31 42 98 [email protected]

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

VientianeLAO PDRTel.: (856) 21 24 32 95Fax: (856) 21 24 32 [email protected]

YaoundéCAMEROUN,CENTRAL AFRICAN REPUBLIC, EQUATORIAL GUINEATel.: (237) 22 22 00 15Fax: (237) 22 23 57 [email protected]

Access our oFFice porTAls AT www.propArco.fr

6 0


PublicationsALL OUR PUBLICATIONS AND vIDEOS

CAN BE DOWNLOADED AT www.propArco.fr.

Geographical and Sectoral Brochures

VideosPROjECTS FINANCED By PROPARCO IN IMAgES (5 MINUTES)

DISCOvER PROPARCO’S ACTIvITIES IN THE vARIOUS REgIONS AND SECTORS

DISCOvER THE FINANCIAL TOOLS OFFERED By PROPARCO

Financial Brochures

PROPARCO in sub-Saharan Africa PROPARCO in the Maghreb and Middle East PROPARCO in China

Commit to Southern countries

Development and the private sector

Private sector support in Tunisia

Rendez-vous in Morocco: Investment capital Microcredit Interview with Fouad Abdelmouni, former Director of Al Amana

(a Moroccan microcredit association)

Rendez-vous in Kenya: “Teatime in Gachege” CHP sustainable energy

Rendez-vous in South Africa: “Black Economic Empowerment”

PROPARCO’s increase in capital

PROPARCO’s financial offer in West Africa PROPARCO’s financial offer in East Africa PROPARCO’s financial offer in South Africa, Mauritius and

Madagascar PROPARCO’s financial offer in the Middle East AFD group and the private sector in Tunisia PROPARCO’s financial offer in Morocco

→ AvAilAble in english

AvAilAble in english

Other partners financed by PROPARCOBank One, Barclays Zambia, BOA Madagascar, Celtel Malawi,FirstRand Bank, Grofin Capital, Industrial Development Corporation,Mozal, Munali, Polana, Real People, Sasol, Zanaco…

Areas of operationPROPARCO’s Johannesburg office covers Angola, Botswana, Lesotho,

Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa,

Swaziland, Zambia and Zimbabwe.

In 2009, PROPARCO allocated more than € 130M of financingin Southern Africa, Mauritius and Madagascar.

bank

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inve

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ent f

unds

corporates

PROPARCO is a Development Finance Institution jointly held by

Agence Française de Développement (AFD) and by public/private

shareholders from the North and South.

PROPARCO’s mission is to catalyze private investment in emerging

and developing countries in support of growth, sustainable deve-

lopment and achieving the Millennium Development Goals (MDGs).

PROPARCO finances operations which are economically viable,

socially equitable, environmentally sustainable and financially

profitable.

PROPARCO offers a wide range of financial products tailored to the specificneeds of private investors in developing countries (loans, equity, quasi-equity,guarantees). In Southern Africa, Mauritius and Madagascar, PROPARCO’s acti-vity is based on 5 types of operations:

Providing long-term and/or subordinatedfinancial resources to banking systems PROPARCO supports the structuring and sustainable development of bankingactivity by providing long-term financial products for equity, quasi-equity anddebt. In 2008 for instance, PROPARCO granted a ZAR 150M credit facility toCapitec Bank.

Supporting the development of companiesand using investment fund leveragePROPARCO provides a range of financial products (debt, equity and quasi-equity) designed to support companies (manufacturing industries, servicesectors, agribusinesses…) in their development. In 2009 indeed, PROPARCOacquired a 10% stake in pan-African rating agency Global Credit Rating, thuspromoting a more accurate assessment of risks and a larger recognition ofinvestment opportunities in African markets. PROPARCO also realises equityinvestments, directly or through regional or pan-African funds.

Financing essential infrastructure for growthIn the framework of infrastructure projects that involve specific financialstructures (PPPs, private electricity producers, concessions) and require long-term foreign currency resources, PROPARCO allocates financing in the form oflong-term and/or structured loans, equity or quasi-equity. For example, in 2004PROPARCO participated in the financing of a gas pipeline through Mozambiquefor Sasol via a $10M senior loan.

Supporting the financing of microfinance institutionsBy supporting microfinance institutions, PROPARCO also contributes to bringingabout profound changes to the economic fabric and to the fight against poverty.All types of financial instruments are also available for MFIs. In 2009, PROPARCOgranted a ZAR100M subordinated loan to African Bank.

Backing technically our partnersBy assisting in the reinforcement of its partners’ capabilities, PROPARCOfavours an increase in companies’ performances and enhances the develop-mental impact of its investments (job creation, economic growth, CSR).

,

ContactSophie Le Roy

Southern Africa Representative for PROPARCO

Tel: (+27) 11 540 7126

Fax: (+27) 11 540 7117

E-mail : [email protected]

Ballywoods Office Park - Ironwood House, 1st Floor

29, Ballyclare Drive, Bryanston - Johannesburg, SOUTH AFRICA

Websitewww.proparco.fr

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PROPARCO’sfinancial products

in Southern AfricaMauritius and

Madagascar

Other partners financed by Proparco

BICIGUI, BOA Group, Cauris Investissement, SOAGA, Finaircraft,

Millicom, Ciment Du Sahel, IPP Kounoune, Palmci, I&P development…

Areas of operationProparco’s Abidjan covers: Bénin, Burkina Faso, Cap-Vert, Côte-d’Ivoire,

Gambie, Ghana, Guinée, Guinée-Bissao, Liberia, Mali, Niger, Sénégal,

Sierra Leone, Togo.

In 2009, Proparco allocated some €50M of financing in West Africa.

bank

s

inve

stm

ent f

unds

corporates

Proparco is a Development Finance Institution jointly held by

Agence Française de Développement (AFD) and by public/private

shareholders from the North and South.

Proparco’s mission is to catalyze private investment in emerging

and developing countries in support of growth, sustainable deve-

lopment and achieving the Millennium Development Goals (MDGs).

Proparco finances operations which are economically viable,

socially equitable, environmentally sustainable and financially

profitable.

Proparco offers a wide range of financial products tailored to the specificneeds of private investors in developing countries (loans, equity, quasi-equity,guarantees).In West Africa, Proparco’s activity is based on 5 types of operations:

Providing long-term and/or subordinatedfinancial resources to banking systems Proparco supports the structuring and sustainable development of bankingactivity by providing long-term financial products for debt, equity and quasiequity. For example, in 2009 Proparco acquired a 7.7% stake in a bank inCôte-d’Ivoire.

Supporting the development of companiesand using investment fund leverageProparco provides a range of financial products (debt, equity and quasi-equity) designed to support companies (manufacturing industries, servicesectors, agribusinesses…) in their development. Indeed in 2009, Proparcoparticipated to the financing of the creation of a pan African airline through aloan of $19.5M. This operation has favoured the development of viable andefficient transport infrastructures and regional integration. Proparco alsofinances investment funds, directly or through some regional or pan Africanfunds of funds.

Financing essential infrastructure for growthIn the framework of infrastructure projects that involve specific financialstructures (PPPs, private electricity producers, concessions) and require longterm foreign currency resources, Proparco allocates financing in the form oflong-term and/or structured loans, equity or quasi-equity. Proparco granted aoan of $15M in order to finance the network expansion of a telecommunicationcompany in Ghana.

Supporting the financing of microfinance institutionsBy supporting microfinance institutions, Proparco also contributes to bringingabout profound changes to the economic fabric and to the fight against poverty.This financing is made via bank guarantees and subordinated financing.

Backing technically our partnersBy assisting the reinforcement of their capabilities, Proparco favours theincrease in companies’ performances and enhances the developmental impactof its investments (job creation, economic growth, CSR).

Proparco’sfinancial products

in West Africa

ContactJulien LefilleurWest Africa representative of Proparco

Tél.: +225 22 40 70 40

E-mail : [email protected]

1, bd François-Mitterand BP 1814, Abidjan 01, Côte-d’Ivoire

Websitewww.proparco.fr

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Support responsible microfinance Financing access to sustainable energy FISEA : Commit and invest side by side with African businesses

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www.proparco.fr

Private Sector & Development magazine

launched in 2011, our new website puts the limelight on both the sense and the end value of PROPARCO’s activities. Presented simply and clearly and easy-to-use, it enables users to discover the whole range of our activities either by geographic zones or by sectors of intervention. The website also offers a vision of projects financed by PROPARCO through photos, videos, testi-monials, documents....visitors can also find full addresses of our offices, now present in four continents, as well as the three regional portals (China, southern Africa & Madagascar and Morocco). Last but not least, one click suffices to have information about the whole range of financial products and services offered by PROPARCO.

A unique publication, Private Sector & Development (PS&D) is a bi-monthly magazine designed to analyse and understand the mechanisms through which the private sector can contribute to the development of Southern countries. In each issue, PS&D confronts opinions and know-how from various hori-zons coming from research, private sector, development institutions and civil society. Edited by PROPARCO, this review includes 6 to 8 articles around a single theme. Available for free in French and English, PS&D is in 1,500 paper copies and on-line. Additional resource materials on both the themes and the authors of the review are also available on the website. After only one and a half years and nine editions, PS&D today enjoys a readership of 10,000, including 3,000 subscribers. Through the diversity of its topics, such as access to water, mobile phones services, tourism or financial markets, PS&D is now becoming a reference publication on the role of the private sector in the development of Southern countries.

Issue 9: What role for the private sector in African railways development?

Issue 8: The mining sector, an opportunity for growth in Africa?

Issue 7: Should tourism be promoted in developing countries?

Issue 6: Private equity and clean energy: how to boost investmentsin emerging markets?

Issue 5: Africa's financial markets: a real development tool?

Issue 4: What are the economic and social impacts of the mobile phone sector in developing countries?

Issue 3: What balance between financial sustainability and social issues in the microfinance sector?

Issue 2: How can the private sector help provide access to drinking water in developing countries?

Issue 1: SME financing in developing countries.

come And discover our new inTerneT siTe And Follow propArco’s news AT www.propArco.fr

downloAd All These issues in French And english And conTAcT The ediToriAl TeAm AT www.propArco.fr

propArco coordinATionFanette Bardin, Raphaëlle de Maisonneuve-Hétier, Benjamin Neumann, Santiago Piza-Cossio and Benoît verdeaux.

GrApHic desiGn And creATion

28, rue du Faubourg Poissonnière 75010 Paris – www.noise.frEditing and coordination: Lionel Bluteau. Assistant: jeanne-Sophie Camuset. Art Direction: Marion Pierrelée. Typographic design: julien Desperiere. Photoengraving: RvB Editions. Printed by: vision Prod’.

pHoTo crediTs COvER: jean-Pierre Barral, Benjamin Neumann, Nicolas Fornage, RR, Mibanco, Olivia Réveilliez, Didier gentilhomme.PAgES 2-3: Benoît verdeaux. PAgE 4: Nicolas Fornage, Laetitia Habchi, Dominique Fradin. PAgE 5: Lola Reboud. PAgE 6: jean-Pierre Barral. PAgES 8-9: Benjamin Neumann. PAgE 10: Dominique Fradin. PAgE 11: Dominique Fradin. PAgE 12: Dominique Fradin. PAgE 13: Benjamin Neumann. PAgE 14:julien Lefilleur. PAgE 15: Dominique Fradin. PAgE 16: Nicolas Fornage. PAgE 17: Danielle Segui, yves Terracol - AFD. PAgE 19: Mibanco, RR. PAgES 20-21: Loïc le Ruyet, Eric Thauvin, Anne-Sophie Rakoutz, Benoît verdeaux, Benjamin Neumann. PAgE 22: Nicolas Fornage, jean-Pierre Barral. PAgE 23: Benoît verdeaux,Nicolas Fornage. PAgE 24: Benoît verdeaux, joan Bardeletti, RR. PAgE 25: Benoît verdeaux, RR. PAgES 26-27: jean-Pierre Barral, joan Bardeletti, Benoît verdeaux, Mibanco. PAgE 28: Benoît verdeaux, Caroline Poujol. PAgE 29: Benoît verdeaux. PAgE 30: Benjamin Neumann, Olivia Réveilliez. PAgE 31: Mibanco,RR. PAgE 32: Arianne Ducreux, RR. PAgE 33: Port Autonome de Dakar, RR. PAgES: 34-35: Olivia Réveilliez, Pierre-Alain Pacaud, Benoît verdeaux,Benjamin Neumann, jean-Pierre Barral. PAgE 36: Amaury Mulliez, Benoît verdeaux. PAgE 37: Benoît verdeaux, Paul Kabré. PAgE 38: Benoît verdeaux, Nutriset. PAgE 39: HeidelbergCement, RR. PAgES 40-41: Eric Beugnot, Paul Kabré, Chantal Regnault, Agence AFD. PAgE 42: Benoît verdeaux, Benjamin Neumann.PAgE 43: Benjamin Neumann, julien Kinic. PAgE 44: Chantal Regnault, Nicolas guyot. PAgE 45: Unimed, RR. PAgES 46-47: Paul Kabré. PAgES 54-55:jean-Pierre Barral.

Legal deposit: june 2011

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Paris151, rue Saint-Honoré75001 Paris, FranceTel.: (33) 1 53 44 31 08Fax: (33) 1 53 44 38 [email protected]

NairobiEast AfricaRoyal Ngao House, Hospital RoadP.O.Box 45955-001000Nairobi, KenyaTel.: (254) 20 271 10 58Fax: (254) 20 271 79 [email protected] Ghislain de Valon

AbidjanWest AfricaBoulevard François Mitterrand01 B.P. 1814 Abidjan 01, Côte d’IvoireTel.: (225) 22 40 70 40Fax: (225) 22 44 21 [email protected] Julien Lefilleur

LagosCentral AfricaPhoenix House Plot 26E Abdulrahman Okene Close Off Ligali AyorindeSt Victoria Island Lagos, Nigeria Tel.: (234) 1270 5740

JohannesburgSouthern Africa and MadagascarBallywoods Office ParkIronwood House 1st Floor29 Ballyclare Drive, BryanstonP.O. Box 130067Bryanston 2021, South AfricaTel.: (27) 11 540 71 00Fax: (27) 11 540 71 [email protected] Sophie Le Roy

TunisImmeuble Miniar, Bloc BRue du Lac d’Ourmia1053 Les Berges du LacTunis, TunisieTel.: (216) 71 861 799Fax: (216) 71 761 [email protected] Emmanuel Haye


522 22 7874Fax: (212) 522 29 [email protected] Amaury Mulliez

CairoMiddle East10 Sri Lanka Street, ZamalekCairo, EgyptTel.: (20) 2 27 35 17 88Fax: (20) 2 27 35 17 [email protected] Eloy

New DelhiSouth Asia1A, JanpathNew Delhi 110 001, IndiaTel.: (91) 11 2379 3747Fax: (91) 11 2379 [email protected] Emmanuelle Riedel Drouin

Bangkok South AsiaExchange Tower35th floor, Unit 3501-02388 Sukhumvit Road, KlongtoeyBangkok 10 110, ThailandTel.: (66) 02 663 60 90Fax: (66) 02 663 60 [email protected] Pacaud

BeijingChina7th Floor, Block C, East Lake Villas35 Dongzhimenwai Avenue, Dongcheng District100027 Beijing, ChinaTel.: (86) 10 84 51 12 00Fax: (86) 10 84 51 13 [email protected] Ariane Ducreux

São PauloSouth AmericaEdificio Çiragan OfficeAlameda Ministro Rochade Azevedo, 3811° andar, conjunto 110401410-000 São Paulo, SP BrasilTel.: (55) 2532 4751Fax: (55) 11 3142 [email protected] Christophe Blanchot

Mexico CityCentral America and CaribbeanTorre OmegaCampos Elíseos n°345piso 5, oficina 501-ACol. Chapultepec – Polanco11560 México D.F. MéxicoTel.: (52) 55 52 81 17 77Fax: (52) 55 52 81 17 [email protected] Saville

Mediterranean and Middle East

Latin America and Caribbean

Sub-Saharan Africa

AsiaHeadquarters


TEL.: (33) 1 53 44 31 08 - FAX: (33) 1 53 44 38 38

www.proparco.fr

PROPARCO 2010 _ CAHIER DE COUV.indd 2 05/07/11 14:44

This report is eco-friendly and has been printed on recycled paper using vegetal and non-mineral inks.

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�Paris151, rue Saint-Honoré75001 Paris, FranceTel.: (33) 1 53 44 31 08Fax: (33) 1 53 44 38 [email protected]

NairobiEast�AfricaRoyal Ngao House, Hospital RoadP.O.Box 45955-001000Nairobi, KenyaTel.: (254) 20 271 10 58Fax: (254) 20 271 79 [email protected] Ghislain�de�Valon

AbidjanWest�AfricaBoulevard François Mitterrand01 B.P. 1814 Abidjan 01, Côte d’IvoireTel.: (225) 22 40 70 40Fax: (225) 22 44 21 [email protected] Julien�Lefilleur

LagosCentral�AfricaPhoenix House Plot 26E Abdulrahman Okene Close Off Ligali AyorindeSt Victoria Island Lagos, Nigeria Tel.: (234) 1270 5740

JohannesburgSouthern�Africa�and�MadagascarBallywoods Office ParkIronwood House 1st Floor29 Ballyclare Drive, BryanstonP.O. Box 130067Bryanston 2021, South AfricaTel.: (27) 11 540 71 00Fax: (27) 11 540 71 [email protected] Sophie�Le�Roy

TunisImmeuble Miniar, Bloc BRue du Lac d’Ourmia1053 Les Berges du LacTunis, TunisieTel.: (216) 71 861 799Fax: (216) 71 761 [email protected] Emmanuel�Haye


522 22 7874Fax: (212) 522 29 [email protected] Amaury�Mulliez

CairoMiddle�East10 Sri Lanka Street, ZamalekCairo, EgyptTel.: (20) 2 27 35 17 88Fax: (20) 2 27 35 17 [email protected]�Eloy

New�DelhiSouth�Asia1A, JanpathNew Delhi 110 001, IndiaTel.: (91) 11 2379 3747Fax: (91) 11 2379 [email protected] Emmanuelle�Riedel�Drouin

Bangkok�South�AsiaExchange Tower35th floor, Unit 3501-02388 Sukhumvit Road, KlongtoeyBangkok 10 110, ThailandTel.: (66) 02 663 60 90Fax: (66) 02 663 60 [email protected]�Pacaud

BeijingChina7th Floor, Block C, East Lake Villas35 Dongzhimenwai Avenue, Dongcheng District100027 Beijing, ChinaTel.: (86) 10 84 51 12 00Fax: (86) 10 84 51 13 [email protected] Ariane�Ducreux

São�PauloSouth�AmericaEdificio Çiragan OfficeAlameda Ministro Rochade Azevedo, 3811° andar, conjunto 110401410-000 São Paulo, SP BrasilTel.: (55) 2532 4751Fax: (55) 11 3142 [email protected] Christophe�Blanchot

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