Dakar, Senegal, March 21, 2022 — To support the growth of the private sector, entrepreneurship and small and medium-sized enterprises across Africa, African, European, multilateral and bilateral partners today launched the African Alliance for Entrepreneurship (AforE).
The Alliance combines and focuses the technical and financial strengths of its members to improve Africa’s business environment and support the growth and success of small and medium-sized enterprises (SMEs), businesswomen and young entrepreneurs. In addition to its core members, the Alliance aims to bring together multilateral and bilateral development banks, bilateral donors, and the African National Development Bank.
The alliance was first announced at the African Economic Financing Summit in Paris in May 2021.
Core members of the Alliance include the African Development Bank (AfDB). European Bank for Reconstruction and Development (EBRD). European Investment Bank (EIB); European Development Finance Institution (EDFI); French Ministry of Finance. Proparco is the private sector lending arm of the International Finance Corporation (IFC) and the French Development Agency Group (AFD Group).
The launch of the Alliance comes as African economies recover and rebuild from the impact of the COVID-19 pandemic, with small and medium-sized enterprises seen as key drivers of job creation, innovation, and delivery of essential goods and services.
The establishment of this Alliance reflects the strong commitment of African, European, multilateral and bilateral institutions, in partnership with the African Union, the European Commission and others, to strengthen Africa’s private sector amidst continuing economic challenges in Africa and the world.
Alliance members today signed the Alliance Working Agreement. IFC will coordinate activities as the Alliance Secretariat and support the operation of the initiative in collaboration with the French Ministry of Finance.
“Africa’s small and medium-sized enterprises and entrepreneurs are the engines of inclusive growth, economic stability and resilience. Supporting their growth is critical to creating jobs and helping Africa recover from the COVID-19 crisis. IFC is proud to join this effort, deepening our partnership among our international partners to provide small and medium-sized businesses with the support they need and deserve.
Solomon Quayner, Vice President for Private Sector, Infrastructure and Industrialization at the African Development Bank, said: “Small, medium and micro enterprises are essential to Africa’s prosperity. They make up 90% of all businesses and generate more than half of all jobs. “Supporting existing businesses and ecosystems to generate business is at the heart of our private sector development strategy. The African Development Bank is committed to the African Entrepreneurship Alliance. We want to ensure this.” This means African entrepreneurs have the means to succeed and can play a key role in solving Africa’s development challenges. ”
EBRD Chairman Odile Renaud-Basso said: “The EBRD is committed to supporting SMEs financially and technically in the North African countries in which it invests, Egypt, Morocco, Tunisia and soon in Algeria. We offer a wide range of financial tools and advisory programs to serve SMEs, and by working with our Alliance partners we can have a better impact on the economic growth of these countries.”
“Ensuring African entrepreneurs and businesses have access to finance is critical to fostering growth and creating jobs. Over the past two years, the EIB has been very active in supporting financial institutions to support small and medium-sized enterprises, particularly those hit hard by the COVID-19 pandemic. We are delighted to be a core member of the Entrepreneurship Alliance. This initiative combines the financial strength, technical strength and local insight of our African and international partners, and together we can secure a better future for business in Africa,” said Ambroise Fayol, Vice President of the European Investment Bank. president.
“European DFI welcomes the opportunity to join forces with international and African partners to foster the growth of entrepreneurship in Africa. EDFI member institutions will be able to increase lending to SMEs across Africa and support our commitment to this important priority. Deepening our collaboration through this new partnership could help mobilize even more investment for inclusive development of the private sector in Africa,” said Soren Peter Andreasen, CEO of EDFI.
Gregory Clemente, CEO of Proparco, said: “Proparco is proud to be among the founding members of the African Entrepreneurship Alliance. Proparco has been committed to supporting African entrepreneurs for many years and will build on the expertise gained through the French initiative Choose Africa to contribute to this new global alliance.”
“Last May, the international community gathered in Paris for the Africa Economic Finance Summit and was proud to formally launch the Alliance for African Entrepreneurship, to devise collective action to foster a strong and inclusive recovery in Africa, based on a dynamic private sector.We are proud to have formally launched the Alliance for African Entrepreneurship, a partnership of prominent development partners to support the development of Africa’s private sector as a key driver of growth and job creation. In the implementation phase, we remain committed to achieving results on the ground, mobilizing additional resources, and driving tangible economic growth. “This is a high-value project developed by core members of the Alliance that aims to effectively transform small and medium-sized enterprises in Africa through innovative financial products,” said Treasurer Emmanuel Moulin.
Through a collaborative platform focused on the private sector, the Alliance will support the development of new initiatives to expand financing options for small and medium-sized enterprises in Africa, where lack of financial access is a major constraint to growth. According to the World Bank, small and medium-sized enterprises account for up to 90 percent of all businesses in sub-Saharan Africa and account for 38 percent of the region’s GDP. Before the coronavirus outbreak, IFC estimated the funding gap facing small and medium-sized businesses in the region at $331 billion.
In addition to funding projects, the Alliance will support reforms aimed at strengthening the business and investment climate across Africa and foster the growth of private sector initiatives in more sustainable green and digital sectors.
Banks and non-bank financial institutions, other public and private sector organizations (such as foundations, charities and venture capital firms), and business and innovation training providers (including incubators, accelerators and universities) may also join the Alliance.
About IFC
IFC, a member of the World Bank Group, is the largest global development agency focused on the private sector in emerging markets. We operate in more than 100 countries, leveraging our capital, expertise and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private businesses and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and foster shared prosperity as economies grapple with the effects of the COVID-19 pandemic. For more information, please visit www.ifc.org.
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About African Development Bank (AfDB)
The African Development Bank (AfDB) Group is Africa’s leading development finance institution with a mission to promote sustainable economic development and social progress on the continent, thereby contributing to poverty reduction. The World Bank Group achieves this objective by mobilizing and allocating resources for investment on the continent and by providing policy advice and technical assistance to support development efforts. The African Development Bank’s authorized capital of approximately $208 billion is contributed by 81 member states, comprising 54 African and 27 non-African countries. For more information, please visit www.afdb.org.
About EBRD
The EBRD is a multilateral bank that promotes private sector development and entrepreneurial initiatives in 38 economies on three continents. The bank is owned by 71 countries, as well as the EU and the EIB. Investments in the EBRD aim to make the region’s economy competitive, inclusive, well-governed, green, resilient and integrated. Follow us on the web, Facebook, LinkedIn, Instagram, Twitter, and YouTube.
About EIB
The European Investment Bank (“EIB”) Group is the lending arm of the European Union. EIB Global is a new specialized division of the EIB Group dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong and focused partnerships within Team Europe, together with other development finance institutions and civil society. EIB Global closely connects the Group with local people, businesses and institutions through its offices around the world.
EDFI
EDFI – European Association of Development Finance Institutions – was established in 1992 to support and promote the activities of bilateral development finance institutions (DFIs). With a combined portfolio of €44 billion, including more than €10 billion in climate finance, EDFI’s 15 member institutions share a vision of a world where the private sector provides decent work and improved livelihood opportunities for people in low- and middle-income countries, and where private investment flows are aligned with the Sustainable Development Goals and the Paris Climate Agreement. EDFI’s mission is to advance the collective interests of its members, inform policy, and promote innovation in industry standards. EDFI members include BIO (Belgium), CDC Group (UK), Cofides (Spain), DEG (Germany), Finnfund (Finland), FMO (Netherlands), IFU (Denmark), Norfund (Norway), OeEB (Austria), Proparco (France), SIFEM (Switzerland), Simest, and CDP Development Finance. (Italy), SOFID (Portugal), Swedfund (Sweden). www.edfi.eu
About Proparco
Proparco is the private sector lending arm of the French Development Agency Group (AFD Group). For more than 40 years, we have been driving sustainable economic, social and environmental development. Proparco provides financing and support to both companies and financial institutions in Africa, Asia, Latin America and the Middle East. Its activities mainly focus on key development areas such as infrastructure for renewable energy, agribusiness, financial institutions, healthcare and education. The purpose of its operations is to strengthen the contribution of private companies to the achievement of the Sustainable Development Goals (SDGs) adopted by the international community in 2015. To this end, Proparco funds companies whose activities contribute to the creation of jobs and decent incomes, the provision of essential goods and services, and the fight against climate change. For a common world. For more information, please visit www.proparco.fr and @Proparco.
Directorate General of Finance
The Directorate General of Finance is one of the main directorates of the French Ministry of Economy, Finance and Reconstruction, and is responsible for advising the French government on domestic and international economic, commercial and financial policy.
