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Teranga Capital, the Dakar-based investment firm co-founded by Senegalese entrepreneur Omar Cissé, has secured a $1.8 million ARIZ PRIME portfolio guarantee from Proparco to strengthen financing for high-impact local businesses.
The €1.5 million ($1.8 million) guarantee, which marks one of Proparco’s most targeted interventions in francophone West Africa, will back a €3 million ($3.5 million) investment portfolio aimed at growth-stage Senegalese SMEs in agribusiness, energy access, technology and essential services, sectors that anchor employment and everyday economic activity.
Backing the firms that hold communities together
Senegal’s SME sector has long faced a structural financing gap where lenders cautiously require heavy collateral, and equity funds often prefer larger deals. Teranga Capital sits in the middle of that gap, backing businesses that have proven demand but lack the capital and strategic support needed to expand.
The ARIZ PRIME, under Proparco’s “Investing in a Sustainable and Resilient Economy” strategy, guarantees to reduce early-stage risk and help Teranga attract additional investors, a crucial step toward mobilizing more local and regional capital into companies that create jobs, build supply chains and stabilize domestic markets.
“This partnership strengthens our ability to mobilize capital for high-impact SMEs and deepen the entrepreneurial ecosystem,” said Mohamed Ngom, deputy CEO of Teranga Capital.
For Proparco, the guarantee is part of the French Choose Africa initiative, which aims to broaden access to finance and improve resilience across small and medium-sized industries.
A platform shaped by local experience
SMEs across francophone West Africa are dealing with rising input costs, currency pressures and tighter credit conditions. Growth-stage companies, too large for microfinance, too small for corporate banks, often stall at the moment they need capital the most.
Over nearly a decade, Teranga Capital has built a reputation for backing Senegalese and sub-regional companies that have strong roots but limited institutional support. The ARIZ PRIME structure gives Teranga room to take calculated risks without carrying the full burden of potential losses. Its pipeline stretches across Senegal, Gambia, Guinea-Bissau and Cape Verde.
Championing homegrown entrepreneurship
Teranga Capital, a Senegalese impact investment fund for SMEs, was founded by Olivier Furdelle and Omar Cissé on March 15, 2016. Cissé, who built his name in Senegal’s tech and investment circles, has long argued that West Africa’s growth depends on empowering small and mid-sized firms rather than waiting for large corporates to lead the way.
Teranga Capital was created on the conviction that local investors who understand local realities can shift outcomes more effectively than remote capital. With Proparco’s guarantee in place, the firm is preparing to deploy capital into a new round of businesses over the next two years.
For Senegal, it is another sign that the country’s private sector is steadily attracting global partners willing to share risk. For Teranga Capital, it is a chance to widen its footprint and reaffirm its role as one of the region’s most active champions of homegrown entrepreneurship.
