French development finance institution Proparco has announced a $2 million investment in African cross-border payments startup Cauridor and unveiled new financing initiatives worth up to €90 million with CRDB Bank Plc, as European-backed institutions intensify efforts to accelerate financial inclusion, digital payments and SME financing across Africa.
The announcements were made during the Africa Forward Summit, co-organised by France and Kenya in Nairobi on May 11–12, where policymakers, financiers and technology leaders gathered to deepen economic cooperation and private-sector investment between Africa and Europe.
The twin transactions underscore growing international confidence in Africa’s fintech and small-business ecosystems at a time when the continent is experiencing a surge in digital payments adoption, mobile money expansion and demand for alternative financing models.
Proparco Invests in African Cross-Border Payments Infrastructure
Proparco said its $2 million investment in Cauridor forms part of the fintech company’s ongoing Series A funding round, alongside participation from Flourish Ventures and LoftyInc Capital.
The investment takes Cauridor’s total funding to $13 million as the company works toward closing its Series A round by the end of 2026.
Founded in 2022 by Guinean entrepreneurs Oumar Barry and Abdoulaye Bah, Cauridor is building cross-border payment infrastructure aimed at making African remittance transactions cheaper, faster and more reliable by connecting global money transfer operators with local payout networks across the continent.
The company integrates international remittance providers including Western Union, RIA, Taptap Send, Sendwave and MoneyGram with African mobile money platforms, banks and cash-agent networks to improve what industry executives describe as the “last-mile” delivery challenge in African payments.
Remittances remain one of Africa’s most important external financing sources. According to World Bank estimates, remittance flows into Sub-Saharan Africa exceeded $50 billion annually in recent years, often surpassing foreign direct investment and development aid in several economies. However, Africa also remains the world’s most expensive remittance corridor, with average transfer costs significantly above the United Nations Sustainable Development Goal target of 3%.
By improving interoperability between payment operators, fintech firms and financial institutions, Cauridor is targeting inefficiencies that continue to drive up transaction costs for African consumers and businesses.
“This investment reflects Proparco’s commitment to supporting the development of efficient, inclusive and interoperable financial infrastructure in Africa,” the institution said, adding that the objective is to improve access to affordable cross-border payment services for both individuals and businesses.
“Proparco is pleased to support this transaction, which is fully aligned with its mandate to promote financial inclusion, digital transformation and private sector development in emerging economies, and to foster the emergence of scalable digital infrastructure serving underserved populations,” said Djalal Khimdjee, Deputy Chief Executive Officer of Proparco.
For Cauridor, the deal marks a major strategic endorsement from one of Europe’s leading development finance institutions.
“The support of Proparco marks a significant milestone for Cauridor,” said Dr Oumar Rafiou Barry, Chief Executive Officer and Co-Founder of Cauridor.
“Their backing brings not just capital, but the networks, expertise, and long term conviction that will be instrumental as we deepen our infrastructure and expand into new markets,” he added.
The financing will be used to strengthen Cauridor’s engineering, operational and commercial capabilities while accelerating the company’s expansion into West and Central Africa, regions where mobile money adoption and cross-border trade are rising rapidly.
The investment was made under the European Union-backed Choose Africa VC programme, supported through the European Union and the European Fund for Sustainable Development Plus (EFSD+), part of the EU’s broader Global Gateway strategy aimed at mobilising sustainable investment across emerging markets.
Proparco and CRDB Launch New MSME Financing Push in Tanzania
In a parallel announcement at the summit, Proparco and CRDB Bank Plc unveiled plans for new guarantee facilities worth up to €90 million to expand financing access for micro, small and medium-sized enterprises (MSMEs) in Tanzania and across East Africa.
The institutions signed two letters of intent covering two €25 million portfolio guarantee facilities developed with the European Union, alongside a €40 million trade finance guarantee aimed at strengthening Tanzania’s entrepreneurial ecosystem and regional trade flows.
The move deepens a long-running partnership between the French development lender and one of Tanzania’s largest financial institutions.
CRDB Bank Plc, which has operated for 30 years, has grown into a major regional banking player with operations in Tanzania, Burundi and the Democratic Republic of Congo, while pursuing broader East African expansion.
Initially focused on large corporate clients, CRDB has increasingly repositioned itself toward MSME financing, a critical but underfunded segment of the Tanzanian economy.
According to the institutions, fewer than half of Tanzania’s MSMEs currently have access to formal financing despite the sector accounting for nearly 50% of national employment.
The first planned guarantee facility will support SME lending across multiple sectors, while the second will focus on businesses operating in high-impact sectors and underserved segments, including women-led and youth-led enterprises.
The €40 million trade finance guarantee will also make CRDB the first East African bank to join Proparco’s Trade Finance Program as an issuing bank.
Under the arrangement, CRDB will receive trade finance backing to support imports and international trade transactions for Tanzanian businesses while also acting as a confirming bank supporting transactions conducted by African financial institutions participating in the programme.
The guarantees are expected to strengthen financing access for businesses operating in agriculture, healthcare and other sectors typically considered high-risk by commercial lenders.
“This renewal of guarantees is part of the trust-based relationship established with CRDB Bank Plc and reflects our shared commitment to supporting, over the long term, entrepreneurs and small and medium-sized enterprises that remain underfinanced,” said Françoise Lombard, Chief Executive Officer of Proparco.
“We are proud to deepen our partnership with Proparco and the European Union through these transformative guarantee schemes, which will unlock greater access to finance for MSMEs across Tanzania and the wider East Africa region,” said Abdulmajid Mussa Nsekela, Group Chief Executive Officer and Managing Director of CRDB Bank Plc.
“At CRDB Bank Plc, we firmly believe that MSMEs are the engine of inclusive economic growth, job creation, and innovation, and empowering them is central to our vision for sustainable development,” he added.
“These facilities will significantly strengthen our ability to support women and youth-led enterprises, as well as businesses operating in high-impact sectors such as agriculture, healthcare, and trade. Beyond expanding financial inclusion, this collaboration reflects our shared ambition to accelerate regional trade, strengthen resilient businesses, and drive sustainable prosperity across East Africa.”
The transactions come as African startups and SMEs face tightening global venture capital markets and rising financing costs, prompting development finance institutions and multilateral lenders to step up support for businesses driving employment, trade and digital transformation.
Under the EU’s EFSD+ instrument, the IMPACT+ programme implemented by Proparco aims to unlock financing for underserved businesses across Africa, Asia and the Middle East while supporting sustainable and low-carbon economic growth.
For African economies seeking to boost industrialisation, regional integration and digital commerce, the deals announced in Nairobi highlight how development finance is increasingly being deployed to build the infrastructure underpinning the continent’s next phase of economic expansion.
