Wema Bank secures $5.9 million Proparco guarantee for MSME loans

French development finance institution Proparco has partnered with Wema Bank to deploy a $5.9 million (N9 billion) portfolio guarantee, aimed at expanding access to credit for micro, small, and medium-sized enterprises (MSMEs) across Nigeria.

The guarantee covers 50% of final loss risk and will enable Wema Bank to develop, over two years, a loan portfolio totaling $11.8 million (N18 billion) dedicated to MSMEs, which are key drivers of employment, innovation, and economic growth in the country.

Targeting high-impact sectors
The facility will focus on sectors critical to the real economy, including agriculture, healthcare, education, pharmaceuticals, and green finance, alongside short-term credit lines to support companies’ working capital needs.

“This first collaboration with Wema Bank allows us to share risk while increasing financing volumes for Nigerian MSMEs,” said Xavier Echasseriau, Proparco Regional Director for Nigeria. “Our partnership reinforces Proparco’s commitment to sustainable, inclusive growth by supporting local financial institutions and energizing the entrepreneurial ecosystem.”

By mitigating structural barriers to financing, the initiative seeks to unlock growth potential for early-stage and scaling entrepreneurs.

Supporting Nigeria’s economic resilience
With a population exceeding 220 million and projected to become the world’s third largest by 2050, Nigeria faces significant challenges in employment and financial inclusion.

By backing Wema Bank, Proparco aims to strengthen the capacity of a locally active bank to serve MSMEs, supporting job creation and financial inclusion in a challenging macroeconomic environment.

The transaction marks the beginning of a long-term partnership between Proparco and Wema Bank, positioning the bank to expand its MSME-focused portfolio while promoting financial inclusion and strengthening Nigeria’s economic resilience.