Citi and Microcred Senegal sign a FCFA 1.45 billion financing agreement to support the growth of microenterprises in Senegal
April 13, 2015
(OPIC)
With this transaction, Microcred Senegal will
be able to finance over two thousand
micro-entrepreneurs across Senegal.
Dakar – Citi Senegal granted Microcred Senegal,
a regulated deposit–taking microfinance
institution in Senegal, a loan of FCFA
1,450,000,000 / US $2.5 million to drive and
promote the development of the microfinance
sector in Senegal. This loan will fund
Microcred Senegal’s microcredit portfolio
supporting the development of approximately two
thousand micro and small enterprises in the
country.
Supporting the financial inclusion of micro and
small enterprises which typically have limited
access to credit, savings or insurance products
in Senegal, are important objectives of the
“Plan Senegal Emergent” (PSE) developed by the
Government for the structural transformation of
the Senegalese economy”, stated Mr Amadou Ba,
Minister of Economy, Finance and Planning.
Whilst the microfinance sector in Senegal is
growing, only a small percentage of the adult
population has an account or uses a formal
financial institution.
“Microcred Senegal, which was created in 2007,
provides financial products and services to
micro and small enterprises to support the
growth and economic development of Senegalese
entrepreneurs”, said Ruben Dieudonne, CEO of
Microcred Senegal. Today Microcred Senegal
reaches more than 135,000 clients (41% are
women), across its 32 branches, providing FCFA
38.5 billion / US $ 66 million in microloans
(average loan size of 1 million FCFA/ US $
2,010 per micro enterprise) and mobilises FCFA
18.5 billion / US $ 32 million of savings with
an average balance of FCFA 135,775 / US $261
per depositor. Microcred Senegal is one of the
eight operating microfinance institutions
developed by the French network Microcred Group
across Africa and China.
This loan is part of a long term business
partnership between Citi Inclusive Finance,
Citi’s specialized unit for microfinance and
inclusive finance transactions, and the
Overseas Private Investment Corporation (OPIC),
the U.S. government’s development finance
institution, to provide financing in local
currencies to leading microfinance institutions
operating in frontier and emerging markets
around the world. OPIC’s mission is to mobilize
private capital that achieves development
through high social and environmental impact
sectors. This strategic alliance that aligns
OPIC and Citi has financed a total of 44
entities in 24 countries globally, reaching
over a million micro-entrepreneurs.
“OPIC’s partnership with Citi in this endeavour
shows our organizations’ mutual dedication to
bold expansion into markets in need of better
access to inclusive finance. Alongside this
shared intent is also a record of results in
these financing efforts. This new transaction
is a milestone for OPIC for it brings Senegal
into our active loan portfolio, and more
importantly is a landmark of new growth
potential for over a thousand Senegalese micro,
small and medium enterprises as a result of
OPIC support,” said Elizabeth Littlefield,
President and CEO of OPIC.
Citi has been present in Senegal for 39 years
and provides a wide range of banking services,
including fund transfers, lending, foreign
exchange, and trade and treasury solutions, to
the government, public sector entities,
multinationals and top tier local corporations,
as well as non-governmental organizations.
Through its global network, Citi is well
positioned to help its clients in Senegal tap
international capital markets, which is of
strategic importance to the government as it
seeks financing for economic and infrastructure
development. Citi also provides its client base
with electronic banking solutions including the
Citi Direct Online Banking platform for cash
management and Citi FX Pulse for clients
trading FX. From Senegal, Citi operates an
important correspondent banking business that
covers banking relationships across the West
Africa Economic & Monetary Union (WAEMU)
and beyond.
“For the first time in Senegal, we have
entered into a commercial financing agreement
to strengthen a microfinance institution in the
country. Our goal is to help local financial
institutions such as Microcred Senegal to
support micro and small enterprises and
contribute to the economic development of
Senegal via each and every entrepreneur,” said
Khady Ndiaye, Citi Country Officer for
Senegal.
This year Citi will also be one of the sponsors
of the African Microfinance Week taking place
in Dakar from 29th June to 3rd July 2015.
Organised by 4 of the largest African
microfinance networks and supported by the
Luxembourg NGO ADA, the Government of Senegal
and the Government of the Grand Duchy of
Luxembourg, the second edition of the African
Microfinance Week will convene microfinance
institutions from all over Africa to support
financial inclusion and the growth of the
sector. The focus this year will be on
solutions to accelerate innovative financing in
rural Africa and include an Investors and
Innovation Fair open to all African
microfinance practitioners.
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