Proparco has provided a €20 million ($23.6 million) portfolio guarantee to NSIA Bank Bénin to support small and medium-sized enterprises (SMEs) in Benin. The agreement was signed on Wednesday, February 25, under the ARIZ risk-sharing mechanism.
The guarantee will cover up to 50 per cent of the credit risk on loans extended to SMEs, helping firms that face structural constraints such as limited collateral access.
“Thanks to this guarantee, NSIA Bank Bénin will be able to offer better tailored and more competitive financing solutions to support growth, innovation and job creation,” said Anicet Okoma.
SMEs play a critical role in Benin’s economy, accounting for 40 per cent of economic output and 67 per cent of GDP in 2021. Access to finance has historically been limited by stringent collateral requirements, despite the viability of many entrepreneurial projects.
The initiative aligns with broader national efforts, including the 2022–2029 Entrepreneurship Support Project (PAEB), which invests about $36 million to promote inclusive and sustainable MSMEs that generate green jobs with digitalisation as a strategic lever. Additionally, the 2024–2029 strategic plan of the Small and Medium Enterprises Development Agency (ADPME) aims to strengthen the MSME sector to support structural economic transformation by 2029.
