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ARIZ and EURIZ guarantees to Standard Bank South Africa to support high-impact SMEs
Project
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Signature date
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Location
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South Africa
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Financing tool
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Financing amount (Euro)
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28500000
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Financing details
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A EURIZ guarantee for ZAR 165,947,400 and an ARIZ guarantee for ZAR 359,552,700.
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Customer
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STANDARD BANK SOUTH AFRICA
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Type of customer
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Financial institution
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Project number
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CZA1219 / CZA1224
This project is carried out with the support of the European Union and Organization of African, Caribbean and Pacific States (OACPS).
The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union and the ACP Group. This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco and Standard Bank have partnered to increase access to financing for small and medium-sized enterprises (SMEs) and support entrepreneurship in Africa.
Client presentation
Standard Bank is one of South Africa's major banks and financial services group, and Africa's largest lender, in terms of assets. Standard Bank's strategic vision is to drive Africa's growth and through its Social Economic and Environmental (SEE) strategy aims to embed social, economic and environmental considerations into its lending decisions and business practices in order to continue to supporting its clients, whilst producing value for society at large.
Project description
Proparco, on behalf of AFD, is proud to partner with STANDARD BANK SOUTH AFRICA, through the signing of two guarantee agreements (ARIZ and EURIZ) for a total amount of 28.5 million EUR. A EURIZ guarantee has been signed for ZAR 165,947,400 and an ARIZ guarantee for ZAR 359,552,700.
The two guarantees are in line with France's initiative, Choose Africa, to accelerate the growth of micro, small and medium enterprises (MSMEs) and entrepreneurship in Africa, in addition to being made possible thanks to the involvement of the European Commission.
Project impact
Through this partnership, Proparco seeks to support Standard Bank in its SEE purpose and to expand access to finance to South African MSMEs operating in sectors that hold the potential to address socio-economic inequalities and grow the South African economy, including financial inclusion, health, education, agriculture and the green economy.
The EURIZ program is implemented with resources from the European Union and the Organization of African, Caribbean and Pacific States (OACPS). It specifically aims to enable financial institutions to encourage the financing of SMEs operating in a high-impact sector.
AFD Group’s ARIZ risk-sharing program was launched in 2008 and aims to reduce the financing gaps faced by small and medium-sized enterprises, in particular due to the lack of collateral guarantees or difficulties in preparing financial statements.