Proparco has provided a NGN 9 billion (around €5 million) portfolio guarantee to Wema Bank in Nigeria, marking the first collaboration between the two institutions. The guarantee, covering 50% of potential losses, will allow Wema Bank to develop a loan portfolio of NGN 18 billion (approximately €10 million) over two years to support micro, small, and medium-sized enterprises (MSMEs), which are crucial for job creation and economic growth.
The financing will focus on sectors with significant impact on the real economy, including agriculture, healthcare, education, pharmaceuticals, and green finance, as well as short-term loans to help businesses manage working capital. The initiative aims to address structural barriers to credit faced by many MSMEs and strengthen their growth potential in Nigeria’s challenging macroeconomic environment.
Nigeria, Africa’s most populous country with over 220 million people, faces major challenges in employment and financial inclusion. Supporting MSMEs is a key strategy to promote sustainable economic and social development. Through this partnership, Proparco reinforces Wema Bank’s role as an active lender to entrepreneurs, particularly those at early growth stages, while aligning with its 2023–2027 strategy to foster a resilient economy, expand financial services, and create local jobs.
The collaboration establishes a long-term partnership with Wema Bank, recognized for advancing digital banking for MSMEs and enhancing financial inclusion. By sharing risk, Proparco helps increase lending volumes for Nigerian MSMEs, directly supporting entrepreneurship, employment, and economic development in a country with significant demographic growth and financing needs.
