strengthening the capabilities of clients` companies

STRENGTHENING
THE CAPABILITIES OF
CLIENTS' COMPANIES
PROVIDING COMPANIES WITH LONG-RANGE,
END-TO-END SUPPORT
In Africa and the Middle East, in Asia and Latin
America, companies and financial institutions
not only need financing; they also need
assistance with implementing their projects
and improving their practices, particularly
environmental, social and governance
practices.
In response, Proparco offers technical
assistance to its clients in addition to the
funding it provides. These services aim
to support the responsible practices and
innovative initiatives of the private sector, and
thereby strengthen the impact of Proparco’s
investments on local development.
Through these services, Proparco supports
the financing of studies (feasibility studies,
for example) and audits, as well as the
implementation of its clients’ in-house
projects, for which one or several consultants
can be seconded.
This assistance is designed
primarily to achieve the
following:
n Enhance the capabilities of financial
institutions (banks, investment funds,
microfinance institutions) and help
them comply with the E&S management
requirements of their partners by training
experts, promoting performance standards,
assisting them with obtaining certification
(ISO 14 001, OHSAS 18 001, SA 8 000), etc.
n Heighten their ability to manage human
resources, manage their finances, control
risk, combat money laundering and terrorism
financing, and improve their management
information systems.
n Strengthen governance at companies
in which Proparco invests (functioning
of decision-making bodies, financial
transparency, etc.).
n Perform energy diagnostics to develop
energy management solutions (energy
efficiency/renewable energies).
n Facilitate diversification through the launch
of new products and services to address the
needs of the most vulnerable (low-income
groups, women, young people, etc.), as well as
of micro-enterprises, small and medium-sized
enterprises, cooperatives and small farmers.
The aim of these technical assistance services
is to help companies in the South adapt to a
changing, increasingly competitive local and
international environment.
Proparco finances them
by drawing on:
n The technical assistance facility of the
Investment and Support Fund for Businesses
in Africa (FISEA), held by AFD and advised by
Proparco, which is primarily intended to build
the capabilities of small and medium-sized
enterprises in Sub-Saharan Africa;
n The Governance Capacity Building Facility
(FRCG), which finances projects to improve
environmental, social and governance (ESG)
performance;
n Its own resources.
80 COMPANIES
have benefited directly or indirectly
from Proparco’s technical assistance
since 2014.
1
This notion of corporate “performance” covers the objectives of efficiency (production),
effectiveness (productivity), viability (profitability) and relevance (economic, social and environmental impacts).
TECHNICAL ASSISTANCE SOLUTIONS
GEARED TO A WIDE VARIETY OF NEEDS AND SETTINGS
CAMBODIA
GOLDEN RICE
OBTAINING CERTIFICATION
ISO 14 001 AND SA 8 000
THE CLIENT COMPANY
THE TECHNICAL ASSISTANCE PROVIDED
Golden Rice (GR) is a company that
processes, mills and sells prime-quality
jasmine rice, much of it for export. It was
founded in 2008 with the aim of adding value
to the production and distribution of quality
rice inside the country and positioning
Cambodia in a market dominated until then
by Thailand.
In 2014, Proparco and GR signed a technical
assistance agreement to put in place an
environmental and social management
system (in accordance with ISO 14 001 and SA
8 000, respectively). The aim is to enable GR
to comply with international E&S standards
– a springboard for breaking into additional
markets.
GR has received two loans from Proparco
(USD 7m in 2009 and USD 10m in 2013) for
the development of its milling capacity and
its international expansion. The company’s
success has had a positive impact on the
entire rice sector in Cambodia.
Following a thorough review of company
practices, a detailed plan of action was
drawn up. A single technical service provider,
TÜV Rheinland, has been assisting Golden
Rice staff with implementation ever since.
Designing environmental policies, drafting an
E&S management programme, spelling out
responsibilities, training managers, building
employee awareness and creating an internal
audit unit are all part of the joint effort.
SUB-SAHARAN AFRICA
I&P AFRIQUE
ENTREPRENEURS [IPAE]
THE CLIENT COMPANY
The I&P (Investisseurs & Partenaires)
impact investing group manages several
investment vehicles, among them I&P Afrique
Entrepreneurs (IPAE). The purpose of this
€54m investment fund is to promote the
development of SMEs in Sub-Saharan Africa,
including microfinance institutions (MFIs).
IPAE views technical assistance as critical
to small business success. Through expert
missions, the fund helps boost the capabilities
of staff at the beneficiary companies and
facilitates the transfer of knowledge. In this
way, IPAE contributes to the emergence of
socially responsible businesses that add real
value to the local economy, businesses with
KEY POINTS
Direct technical assistance
Proparco financing: €80,000
w Total project value: €160,000
w Date: 2014
w
w
BOOSTING CAPABILITIES
AT COMPANIES IN THE IPAE PORTFOLIO
bright prospects for profitable, sustainable
growth.
THE TECHNICAL ASSISTANCE PROVIDED
Through the Investment and Support Fund
for Business in Africa (FISEA), Proparco
has mobilised €250,000 together with the
European Investment Bank (EIB) to support
IPAE’s technical assistance facility. Between
2012 and 2015, the facility funded 46 technical
assistance assignments at 14 IPAE portfolio
companies spanning 10 countries.
A wide variety of needs specific to the
individual SMEs or MFIs were met in this
way. For example, management information
systems (MISs) were put in place or
strengthened, the management of human
resources or sales and marketing was
improved, technical and operational issues
were addressed and company premises were
made more energy-efficient.
KEY POINTS
Delegated technical
assistance (FISEA)
w FISEA financing: €250,000
w Financing by IPAE portfolio
companies: 15 % minimum
w Date: 2010
w
TANZANIA
EXIM BANK
ESTABLISHING AN ENVIRONMENTAL
AND SOCIAL MANAGEMENT SYSTEM
THE CLIENT COMPANY
THE TECHNICAL ASSISTANCE PROVIDED
Established in 1997, Exim Bank of Tanzania
(EBT) ranks fifth in the country in terms of
total assets, and provides banking services to
both retail and business customers, including
SMEs. The bank has a particularly strong
presence in import/export and agricultural
value-chain financing.
In response, Proparco has drawn on resources
from the AFD Group-financed Capacity
Building Governance Facility (FRCG). That
funding has been used to provide Exim Bank
with a specialist consultant to help enhance
its E&S policies and procedures, as well as to
establish a system for assessing and monitoring
any E&S risks associated with its investments,
in accordance with the performance standards
set by the International Finance Corporation
(IFC). Proparco’s technical assistance also
includes training for Exim Bank staff in how to
Since 2007, EBT possesses an E&S risk
management system, but it needs to be
strengthened if the bank is to keep pace with
constantly changing international regulations.
TUNISIA
UNIMED
operate the bank’s E&S management system.
At the same, EBT customers now have greater
appreciation for EBT’s adoption of E&S best
practices.
KEY POINTS
Direct technical assistance (FRCG)
FRCG financing: €30,000
w Total project value: €60,000
w Date: 2012
w
w
INSTALLING A TRIGENERATION
SYSTEM
THE CLIENT COMPANY
Unimed is a Tunisian pharmaceuticals lab that
manufactures and markets two main types
of generic drugs: eye drops and injectable
antibiotics. Founded in 1989, it has gained
benchmark status in North Africa and West
Africa. To support its growth, Proparco
acquired a USD 5m holding in the company.
Drug production at Unimed requires
sophisticated, energy-intensive equipment.
To keep costs down, achieve energy selfsufficiency and reduce its carbon footprint,
the company set its sights on trigeneration,
a high-efficiency power production process.
THE TECHNICAL ASSISTANCE PROVIDED
To make that goal a reality, Unimed entered
into a technical assistance agreement with
Proparco in 2013. On this basis, Proparco
has assisted Unimed with its request for
tenders and with finding experts to conduct
a feasibility study. It has also provided project
development support for installation of the
trigeneration unit – writing specifications,
choosing the best trigeneration solution,
selecting a supplier, negotiating the contract
and more.
Proparco’s role will also include training in the
new technology for Unimed maintenance staff
and initial performance measurement once
the system is up and running.
KEY POINTS
Direct technical assistance
Proparco financing: €75,000
w Total project value: €150,000
w Date: 2013
w
w
In addition to providing financing, its role is to promote the emergence of responsible and innovative
economic and financial actors in developing and emerging countries. It also assists its clients in improving
their environmental, social and governance performance.
Technical Assistance Unit
151, rue Saint-Honoré – 75001 Paris
Tel.: +33 1 53 44 31 08 – Fax: +33 1 53 44 38 38
www.proparco.fr
01 53 17 30 40
advitam.org
2016 – agence de communication
Proparco focuses on the key development areas, such as renewable energy-based infrastructure,
agribusiness, financial sector, health and education. Through its work, Proparco has a powerful impact
on job creation, access to essential goods and services and, more broadly, on poverty reduction and
fighting climate change.
Copyright : J. Bardeletti (couverture), Pockafwye/Flickr (p.2), D. Gentilhomme (p.3), D. Degnan/Corbis (p.5)
Proparco – a subsidiary of the Agence Française de Développement (AFD) devoted to private sector
funding – has been supporting sustainable development for almost 40 years. It operates in 73 countries
in Africa, Asia, Latin America and the Middle East and helps finance and support financial institutions
and corporate private-sector projects. Today it has almost 400 clients worldwide. Proparco is one of
the leading European Development Finance Institutions, which together spearhead a large number of
joint programmes.