Ecobank DRC Gets $10M Proparco and EU Guarantee

In Short

Ecobank DRC is getting support from Proparco and the European Union to expand lending to micro, small and medium-sized enterprises (MSMEs) in the Democratic Republic of the Congo.

The support comes through a $10 million Impact+ portfolio guarantee, a risk-sharing tool that can help a bank lend more by reducing potential losses.

What Happened: Impact+ Guarantees For Ecobank DRC

At the Africa Financial Summit (AFIS) held on November 3 to 4 in Luanda, Proparco and the European Union announced their support for Ecobank DRC.

After the panel “Risk Sharing in Practice: What It Takes to Finance More African SMEs,” Ecobank Transnational Incorporated (ETI) and Proparco signed a new guarantee agreement for the benefit of Ecobank DRC.

ETI operates in 34 African countries, including the Democratic Republic of the Congo through its subsidiary Ecobank DRC. Proparco and the banking group said they have built a partnership through “numerous financing, trade finance and portfolio guarantee transactions across the continent.”

Proparco will put in place two portfolio guarantees in the DRC totaling USD 10 million. One guarantee is aimed at supporting growth of the bank’s MSME financing portfolio. The second targets “high-impact segments,” including businesses led by women and young people, startups, and activity in agriculture, health, education, and green activities.

Proparco said the transaction aims to improve access to credit for MSMEs in the DRC, with a particular focus on businesses owned by women and young entrepreneurs, as well as the education, health, and agriculture sectors.

Why It Matters: Easier Access To Credit For DRC MSMEs

Proparco said one of the main barriers to MSME financing is access to guarantees and collateral (assets pledged to secure a loan). It said using guarantee mechanisms can ease that constraint, helping more entrepreneurs, particularly those with “strong growth potential but limited assets,” access financing.

The partnership is part of the IMPACT+ program, jointly structured with the European Union, which aims to facilitate access to finance for MSMEs in Africa.

Emmanuel Haye, Director of the Financial Institutions Department at Proparco, said the collaboration reflects a shared ambition to increase financing for MSMEs and channel more resources toward women and young entrepreneurs, as well as underserved sectors with “a strong development impact.” He added that the financing benefits from EU support and “demonstrates the strong commitment of the European Commission and France to financial inclusion.”