Senegal’s Teranga Capital Secures EUR 1.5 M Proparco Guarantee To Boost SME Financing

Senegal’s Teranga Capital has secured a EUR 1.5 M portfolio guarantee from Proparco to support its EUR 3 M SME investment portfolio, using the ARIZ PRIME risk-sharing mechanism.

The guarantee cushions potential losses, enabling Teranga to fund higher-risk sectors such as agribusiness, renewable energy and tech services—areas typically overlooked by commercial banks.

The partnership targets the “missing middle,” where SMEs needing EUR 100 K–EUR 2 M struggle to access financing. Proparco says the move reflects its commitment to expanding capital access, while Teranga notes the guarantee also strengthens its appeal to future investors.

The deal follows Teranga’s recent CFA 2 B fund first close and comes as the firm prepares to expand beyond Senegal into frontier West African markets like The Gambia, Mauritania, Guinea-Bissau and Cape Verde. With a higher investment cap of EUR 1.5 M, Teranga is positioning itself as a key growth-stage investor in underserved Francophone markets.