TechPression

Tag: Proparco

  • Proparco supports Equity Group with €1 million to enhance climate-smart agriculture in Kenya

    Proparco supports Equity Group with €1 million to enhance climate-smart agriculture in Kenya

    On Tuesday, Proparco and Equity Group announced a deal that will provide the Equity Group Foundation (EGF) with €1 million in technical assistance for the execution of its high-impact project, “Climate Resilient Agri-Food Systems” (CRAFS).

    The goal of this collaboration with Equity Group, a long-time client, is to assist small Kenyan farmers in implementing sustainable farming methods.

    The signing ceremony was held in Nairobi on Tuesday, with Dr. James Mwangi, CEO of Equity Group, Proparco’s Regional Director for East Africa Jean Guyonnet-Dupérat, and Arnaud Suquet, French Ambassador to Kenya, in attendance.

    Read also: Adeniyi and Gloria Abiodun launch $1.3 million fund to train aspiring software engineers in Africa

    Agriculture: backbone of Kenya’s economy 

    Kenya’s economy is mostly driven by agriculture, which contributes roughly 30 percent of GDP and 45 percent of export revenue.

    It supports 75 percent of rural communities and employs more than 70 percent of the rural workforce, 60 percent of whom are women and young people, making it the foundation of rural livelihoods.

    About Equity Group Foundation 

    Founded in 2008 as the social arm of Equity Group Holdings, the Equity Group Foundation (EGF) is a non-profit organisation with its headquarters in Kenya. It aims to improve Africans’ lives and means of subsistence.

    High-impact development initiatives are carried out by EGF, such as the “Climate Resilient Agri-Food Systems” (CRAFS) project, which will assist smallholder farmers in Kenya in implementing Climate-Smart Agriculture (CSA).

    By using sustainable methods, this strategy lowers agriculture emissions, increases resilience to climatic shocks, and increases production.

    Benefits for Kenyan farmers 

    Small-scale producers will benefit from training, financial access, and information sharing through the CRAFS initiative, which is being coordinated by EGF in partnership with Equity Group.

    A committed field team will guarantee implementation on the ground, and value chain participants and suppliers are crucial in enabling farmers and microbusinesses.

    With an annual target of 15,000 farmers involved in livestock or agricultural value chains, the initiative will offer education, awareness-raising, financial access, connections, and knowledge sharing about sustainable production methods, waste-to-energy, water harvesting and management, and efficient energy use.

    Read also: KOKO secures Mirova funding to scale clean cooking in Kenya, Rwanda

    Comments from stakeholders 

    French Ambassador to Kenya, Arnaud Suquet emphasised that the collaboration between France, Proparco, and Equity Group will support SMEs and entrepreneurship,

    “In a country where agriculture is critical for employment, food security, environment and foreign currency earning, the collaboration between France through Proparco and EGF will be key to support SMEs and entrepreneurship,” said Suquet.

    Jean Guyonnet-Dupérat, Proparco’s Regional Director for East Africa, said: “Proparco is very pleased to strengthen its partnership with a long-standing client and leading player on the African continent, Equity Group. Through its Foundation, Equity participates in concrete change by supporting Kenyan actors in agriculture, from small farmers to innovators. Our technical support backs this approach, and we thank EGF for its trust!”

    Equity Group Managing Director and CEO, Dr. James Mwangi, said: “This partnership with Proparco is another milestone in a journey of people and nations. It’s about farmers, families, communities and nations gaining the knowledge and support to thrive in a changing world. By embracing Climate-Smart Agriculture, we will empower farmers to increase their productivity, build resilience against climate shocks, and contribute to a more sustainable future. Smallholder farmers need support to mitigate agricultural risks, and we are committed to helping them navigate these challenges.”

  • AfricInvest secures $10.7 million from Proparco for African startups

    AfricInvest secures $10.7 million from Proparco for African startups

    AfricInvest has received a €10 million ($10.7 million) investment from Proparco, the private sector investment division of Agence Française de Développement (AFD), for its new Small Cap fund, strengthening their ongoing collaboration.

    This investment, announced on Monday, aligns with Proparco’s Choose Africa initiative, which aims to support small and medium-sized enterprises (SMEs) across the continent.

    “This investment is part of the Choose Africa initiative, which Proparco launched to support SMEs and startups across Africa,” said Jérémie Ceyrac, Proparco’s Investment Director. 

    Read also: African Investment Platforms Close Venture Fund at $112 million

    “The fund reflects our ambition to strengthen the capacity of African entrepreneurs while addressing economic, social, and environmental challenges sustainably. Our partnership with AfricInvest spans more than 25 years, and we are proud to continue supporting the continent’s economic fabric together.”

    Investment strategy and impact

    The AfricInvest Small Cap fund, which received this investment, focuses on supporting SMEs in North, East, and West Africa, particularly in sectors such as education, healthcare, and agribusiness. The fund supports enterprises in scaling, improving productivity, and adopting sustainability, prioritising gender equity and climate action alongside financial returns.

    Brahim El Jai, Senior Partner at AfricInvest, emphasised the fund’s mission, “This fund builds on our longstanding commitment to empowering African SMEs with strong growth and impact potential. By combining financial investment with our regional expertise, we aim to foster innovation, create jobs, and support climate-aligned strategies in line with the Paris Agreement.”

    Read also: Kenyan startup Turaco raises $10 million, aims for 1 billion users

    Partnership and broader context

    AfricInvest and Proparco have a deep-rooted partnership, with Proparco investing in 15 of AfricInvest’s 19 funds since 1997. This enduring alliance highlights their joint dedication to supporting Africa’s SME sector and tackling global issues like gender inequality and climate change.

    Proparco’s commitment to AfricInvest’s funds aligns with its mission to drive sustainable development and empower African businesses with customised financial support.

    Another notable development is that AfricInvest has also been involved in the Transform Health Fund, which recently surpassed its target by raising $111 million to support healthcare systems in Africa. This fund, managed by AfricInvest in collaboration with the Health Finance Coalition, aims to scale proven and innovative healthcare models across the continent.

  • Proparco fuels African climate innovation with $5M fund investment

    Proparco fuels African climate innovation with $5M fund investment

    Proparco announced a significant $5 million investment in the Equator Africa Fund on Monday, aimed at enhancing climate innovation across Sub-Saharan Africa.

    Equator Africa Fund, founded by Nijhad Jamal, focuses on early-stage startups addressing urgent climate challenges through renewable energy, sustainable agriculture, and green mobility solutions.

    Read also: Namibian minister calls for urgent investment in Africa’s energy sector

    Investment impact

    This funding is crucial for building climate resilience in a region that is particularly vulnerable to the impacts of climate change.

    Proparco’s Fabrice Perez stated, “Through this investment, we aim to support ventures addressing the urgent climate challenges in sub-Saharan Africa”.

    The Equator Africa Fund has previously backed innovative companies like Kenya’s SunCulture and electric mobility firm Roam, which exemplify the potential for sustainable growth in the continent’s climate tech sector.

    Nijhad Jamal expressed pride in Proparco’s involvement, emphasising the importance of providing capital and support to startups at crucial stages of their development. 

    He noted, “We are extremely proud to have Proparco participate in our fund…to provide much-needed capital and active hands-on support”.

    This partnership aims to bridge the funding gap and catalyse further investments in climate tech initiatives, unlocking economic potential while addressing environmental challenges.

    Read also: Osinbajo advocates for human investment over technology in Africa’s climate crisis

    Broader context

    The investment aligns with a growing trend of increased financial backing for African climate startups. In 2024 alone, these startups have attracted $325 million, reflecting a significant rise from previous years.

    However, experts warn that this amount still falls short of the estimated $300 billion needed annually to meet Africa’s climate adaptation and mitigation goals by 2030.

    Proparco’s engagement with the Equator Africa Fund highlights a commitment to sustainable development that balances economic growth with environmental stewardship. 

    As Perez remarked, “We believe these ventures hold promise for a sustainable future”. The fund’s strategic focus on innovative solutions is essential for enhancing energy access and promoting sustainable agricultural practices across the continent.

  • Proparco invests $5 million in Egypt’s fintech sector

    Proparco invests $5 million in Egypt’s fintech sector

    An investment was made by Proparco in an early-stage venture capital fund controlled by DisrupTech Ventures. This investment is intended to assist the growth of Egypt’s fintech sector and contribute to the expansion of access to financial services throughout the country.

    DisrupTech is an initiative that aims to provide start-up funding to up to 28 companies that are primarily focused on providing financial technology services. Proparco has invested $5 million in this endeavour. 

    The investment vehicle was able to secure $36 million in capital from a variety of backers, which included family offices, funds-of-funds, and development finance institutions. Egyptian IT companies, which frequently have trouble raising funds to put their discoveries to market, will find this to be a significant source of finance and use it to their advantage.

    It is imperative that Egypt speed up its digital transition and increase the number of people who have access to financial services such as depositing money and paying their bills. 

    In the meantime, the quantity of venture capital that is available in Egypt is just a fraction of what is usual for emerging markets, despite the fact that it has increased significantly over the course of the last few years.

    In addition to providing financial backing, DisrupTech will also offer guidance and assistance in the form of mentoring to the companies that it backs.

    Read also: Acasia ventures leads Balad’s seven-figure pre-seed round

    Remarks From Chief Executive Officer at Proparco

    “Egypt is full of bright, talented founders but too often, they cannot secure the capital they need to expand their businesses; we are always excited about supporting entrepreneurs, increasing access to financial services and contributing to Egypt’s growth,” said Mohamed Okasha, Managing Partner from DisrupTech Ventures.

    “We are pleased to partner with DisrupTech Ventures, which has already become one of the leading early-stage investors in Egypt. Thanks to its company-building track record and domain-specific expertise, DisrupTech is bringing much needed support to young companies in the region. This is in line with Proparco’s strategy to maximize impacts and to finance innovation, by fostering the emergence of a dynamic venture capital industry to back African entrepreneurs” added Françoise Lombard, Chief Executive Officer at Proparco.

    The goal in establishing DisrupTech was to provide early-stage Fintech and Fintech-enabled digital services entrepreneurs with support, with a particular emphasis on Egypt. The team takes a hands-on approach from the very beginning, teaming with outstanding businesspeople to make their vision a reality and adopting a hands-on strategy. One of its primary goals is to play a catalytic role in bringing about a larger-scale transformation of the ecosystem of financial services in Egypt.

    DisrupTech was established twenty-four months ago, and it has already put forty percent of its total fund size into early-stage technological companies. DisrupTech was established by an eclectic group of seasoned individuals in the fields of financial technology and entrepreneurial investment who have experience working both domestically and internationally.

    The investment that Proparco has made in DisrupTech is a part of its Venture Capital programme. Since the year 2020, the company has used this programme to invest over €120 million in African early-stage firms and venture capital funds.

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    Why DisrupTech Was Established

    The goal in establishing DisrupTech was to provide early-stage Fintech and Fintech-enabled digital services entrepreneurs with support, with a particular emphasis on Egypt. The team takes a hands-on approach from the very beginning, teaming with outstanding businesspeople to make their vision a reality and adopting a hands-on strategy. One of its primary goals is to play a catalytic role in bringing about a larger-scale transformation of the ecosystem of financial services in Egypt.

    DisrupTech was established twenty-four months ago, and it has already put forty percent of its total fund size into early-stage technological companies. DisrupTech was established by an eclectic group of seasoned individuals in the fields of financial technology and entrepreneurial investment who have experience working both domestically and internationally.

    The investment that Proparco has made in DisrupTech is a part of its Venture Capital programme. Since the year 2020, the company has used this programme to invest over €120 million in African early-stage firms and venture capital funds.