Proparco, the private sector arm of French State-owned development finance institution Agence Française de Développement (AFD), has acquired a 10% equity stake in emerging markets focused Global Credit Ratings (GCR) to help improve the provision of financial information and contribute to improved efficiency of financial markets in Africa.

GCR, led by CEO Dave King, was currently responsible for more than 60% of all ratings accorded in Africa, a market it believed has great potential.

King noted that the transaction with Proparco was in line with its strategy to further expand into French-speaking Africa, saying the tie-up was an essential pre-requisite for the establishment of a vibrant ratings system in the West and Central African Economic and Monetary Unions, comprising 14 francophone countries.

"The partnership with Proparco will not only enable GCR to significantly expand its ratings coverage and market share in Africa, but will also enhance GCR's credibility in global capital markets," he added.

AFD group CEO and Proparco chairperson Jean-Michel Severino commented that the partnership with GCR would play an important role for Proparco, but also for AFD, in promoting investment in Africa.

"This project falls within a category of operations targeting the enhancement of investments in Africa. Proparco has completed various projects of this nature in Africa including liquidity guarantees for listed vehicles in West Africa as well as guarantees of mutual funds in North Africa, allowing investor to recover their capital while investing on local stock exchanges," he said.

Severino was currently in South Africa as a signatory for three significant financial agreements, as well as to strengthen the AFD group's commitment to development in Southern Africa.

On Wednesday, AFD concluded a €200-milion loan agreement with freight logistics group Transnet and signed a €100-million deal with the Development Bank of Southern Africa.

On Thursday, it will also conclude a €20-million deal with the National Housing Finance Corporation for affordable housing and on Friday an agreement with the Central Energy Fund.