DEMAIN | Law Firm contributed, alongside PROPARCO, to the negotiation and signing of this senior loan under the "Fragile Countries" facility developed by PROPARCO, as part of a financing syndicated by IFC, the International Finance Corporation, a member of the World Bank Group.

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Express Union Tchad, a subsidiary of Express Union Group, is one of the country's leading microfinance institutions (MFIs), whose business promotes access to finance for women and rural populations. The MFI has signed a senior loan with PROPARCO of XAF 630 million (over 3 years), equivalent to approximately EUR 1 million. The loan forms part of a financing syndicated by IFC, a member of the World Bank Group.

Express Union Group is a group specialising in money transfers and microfinance, headquartered in Cameroon and operating across Central and West Africa. Its subsidiary, Express Union Tchad, has secured a loan of XAF 630 million, equivalent to approximately EUR 1 million, from PROPARCO under the "Fragile Countries" facility, which aims to strengthen access to finance for entrepreneurs in remote regions, particularly in Chad.

In 2022, only 24% of adults in Chad had access to a bank account (Banque de France data); PROPARCO's support for Express Union Tchad therefore contributes to the financial inclusion of the most vulnerable populations and to the roll-out of credit solutions for small entrepreneurs. The breadth of services offered by the institution and the scale of its branch network ensure close coverage across the whole of Chad, an essential asset in supporting the entrepreneurial fabric, particularly in rural areas in the country's interior.

Until now, the microfinance institution had relied solely on its deposits to fund its operations and had never borrowed from a financial institution. PROPARCO's loan will therefore also have a catalytic effect on future debt-raising, amplifying its impact on the reduction of territorial and socio-economic inequalities. At Express Union Tchad's request, and drawing on the experience of IFC and PROPARCO, particular attention will be paid to supporting the institution in developing its client protection framework.

"For Express Union Tchad, this loan will strengthen our financial capacity to meet the financing needs of micro, small and medium-sized enterprises (MSMEs) and low-income households, in order to boost job creation and accelerate financial inclusion. One of the priority pillars of Express Union Tchad's 2024-2028 strategic development plan is unquestionably the development of financial intermediation. PROPARCO is thereby giving concrete form to its support for the private sector in developing countries, and in Chad in particular. Express Union Tchad hopes to see this collaboration extend to other areas, supporting the company in its vision for growth" said Ebenezer Dongmo, Managing Director of Express Union's Chadian subsidiary.

Mehdi Tanani, Regional Director for Central Africa at PROPARCO, welcomed the transaction: "It is a source of great pride to be able to finance Express Union Tchad and to enable this microfinance institution to multiply its impact on Chadian micro-entrepreneurs, who are striving in a challenging economic environment. Reducing social and territorial inequalities in fragile countries is a collective commitment at the heart of PROPARCO's 2023-2027 strategy." The project will contribute to three Sustainable Development Goals (SDGs): SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities).

Photo credit: PROPARCO Regional Office: https://www.proparco.fr/fr/actualites/express-union-tchad-developpe-son-activite-de-microfinance-avec-le-soutien-de-proparco-0