Teranga Capital, the Dakar-based impact investment firm co-founded by prominent Senegalese entrepreneur Omar Cissé and Olivier Furdelle in 2016, has secured a crucial $1.8 million (€1.5 million) ARIZ PRIME portfolio guarantee from Proparco. This strategic financial mechanism is key to unlocking a €3 million ($3.5 million) investment portfolio dedicated to supporting high-impact local businesses. The guarantee directly addresses the structural financing challenge facing growth-stage SMEs in Senegal and the broader francophone West Africa region.
De-Risking the “Missing Middle”
The ARIZ PRIME guarantee is a highly targeted financial tool, part of Proparco’s “Investing in a Sustainable and Resilient Economy” strategy, designed to share the credit risk associated with lending or investing in businesses perceived as too risky by commercial banks. By mitigating potential losses for Teranga Capital, the guarantee empowers the firm to channel essential, patient, long-term capital into the region’s “missing middle”—companies too large for microfinance but too small for large corporate banks.
Deputy CEO Mohamed Ngom highlighted that this partnership is instrumental in strengthening their ability to mobilize additional capital from other investors, which ultimately reinforces their mission to cultivate a more robust entrepreneurial ecosystem. This risk-sharing arrangement is fully aligned with the French Choose Africa initiative, aiming to broaden financial access across the continent’s small and medium-sized industries.
Portfolio Focus and Regional Growth
Over the past decade, Teranga Capital has established a reputation for providing both equity financing and hands-on strategic support to firms that anchor local economic activity. The new investment portfolio is strategically focused on critical sectors including:
-
Agribusiness: Supporting food security and value chain efficiency.
-
Energy Access and Renewable Energy: Crucial for overcoming power constraints.
-
Technology and Essential Services: Enabling digital transformation and local service provision.
While the firm’s roots are deep in Senegal, the ARIZ PRIME structure enhances its confidence to extend its footprint into neighboring frontier markets such as Gambia, Guinea-Bissau, and Cape Verde. This expansion capitalizes on Omar Cissé’s vision: that West Africa’s most sustainable growth will come from empowering homegrown entrepreneurs who deeply understand local realities, rather than relying solely on external, large corporates. The Proparco guarantee is a pivotal sign that global partners are increasingly willing to share risk to fuel Senegal’s private sector growth.
