Proparco backs €5m Bridge Fund for African companies
Promoted by Digital Africa and deployed by Proparco, the Bridge Fund is intended to be an appropriate response to the challenges confronting young innovative African companies, whose development is harmed by the economic impact of the Covid-19 pandemic.
The fund will offer a bridging loan, over a maximum period of 24 months, to companies whose fundraising process has been cancelled or delayed due to the global economic crisis and the contraction of the investment market.
The mechanism provides that the proposed packages – between €200,000 and €600,000 – have to be co-financed by institutional investors who have already deployed investments in Africa. This approach should trigger a leverage effect able to potentially multiply the €5 million allocation.
The amounts will be released in the form of loans, on attractive terms.
To qualify, companies must generate 75% of their turnover of at least €200,000 in Africa or have at least half of their teams working on the continent.
The sectors targeted are all strategic for the African economy: agriculture, energy, education, health, financial inclusion, logistics and green mobility.
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