The Union of Mutual Savings and Credit Unions of Mali (Africa) “Kafo Jiginew” and the European Investment Bank signed, a loan agreement estimated at $10.8 billion (CFA6.5 billion), on Monday, February 24th, 2020 at the headquarters of the financial institution. Through this signature, more than 60,000 microcredits should be granted to small farmers. It is expected to finance nearly 15,000 people. This is a logical continuation of the growth in microfinance activities carried out by Kafo Jiginew, thanks to the first European Investment Bank financing that was received in 2001.
According to the Delegate Minister to the Minister of Economy and Finance, in charge of the Budget, Barry Aoua Sylla “It should be recognized that these micro and small family-type enterprises are real driving forces of socio-economic activities in Mali and can be a powerful sighthound for development and sustainable growth,” she acknowledged. The signing of the agreement took place in the presence of the head of the European Union cooperation in Mali, Géza Strammer, the PCA of Kafo Jiginew, Karim dit Karamoko Konaté, and other government ministers. This was followed by a press conference.
All the latest breaking business news with the Born2Invest mobile app. Browse the Born2Invest’s complete collection of articles and commentary on Africa. Find breaking news, top stories and features from Africa.
The loan to help transform access to financing
Worth $10.8 billion (CFA6.5 billion), this loan will help transform the access to financing provided by Kafo Jiginew, according to the EIB’s regional representative in West Africa. “Kafo Jiginew has long maintained the trust of its clients and they have also earned and maintained our confidence with the partnership we are renewing today.”
Thus, the European Investment Bank will provide the savings and loan bank with long-term resources to support the development of its financing activities. Through this signature, more than 60,000 micro-credits should be granted to small farmers. Almost 15,000 people are expected to be financed.
The European Investment Bank will provide long-term funding to Kafo Jiginew in local currency, CFA Francs. Because of this, costs and uncertainties of managing a foreign currency loan for local currency lending will be avoided.
Cafo Jiginew congratulate the technical and financial partners
For his part, the director of CAFO JIGINEW did not fail to congratulate the technical and financial partners for their sense of responsibility but also for their relevance in the implementation of this convention signature. “This deserves to be commended as we know how great the challenge is for micro-finance to access quality financing to allow finance inclusive and sustainable growth. This financing is granted at 6%. The duration is seven years, with a two-year grace period,” he said.
In his speech, the Minister Delegate to the Minister of Economy and Finance, in charge of the Budget, Barry Aoua Sylla said that “the relevance of this agreement and its timeliness lies in its contribution to promoting income-generating activities through credits granted to micro, small and medium-sized individual, formal and even non-formal collective enterprises.”
The contract to supporting financing and economically profitable investments
It should be noted that the contract will be committed to supporting financing, economically profitable investments, investments that create added value and jobs in sectors with difficult access to bank credit in rural areas. These are essentially micro, small and medium-sized enterprises in semi-urban and urban areas, and women and young people. The agreement will support above all the economic development of Mali’s rural areas.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Financial Afrik, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
French Biotech SparingVision Raises a Large Sum of Money
Initial trial results for SPVN06 are expected in 2023, with first efficacy data expected in 2025. SparingVision is also developing...
The Hurricane in the Stock Markets Is Real, Only it Is Slow Moving
Three quarters through the year and the bear market continues. Third consecutive negative quarter. The bond market is suffering its...
Why Bond Yields Continue Rising
Markets don’t like being oversold. So, I expect we may see a bounce in the Dow Jones in the coming weeks. But,...
The Real Estate Market in Italian Small Municipalities Increases by 33%
According to data from Crowdfunding Buzz's observatory on real estate crowdfunding, in 2022, to date, real estate crowdfunding has raised...
CaixaResearch Promotes Cutting-Edge Health and Biomedical Research
CaixaResearch promotes cutting-edge research in health and biomedicine. The "la Caixa" Foundation's call for health research supports 33 projects of...
Business1 week ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 38]
Business1 week ago
World Football Summit: FIFA World Cup Business Opportunities and Beyond
Featured2 weeks ago
Dow Jones and Other Major Market Indexes Were Down this Past Week
Featured2 weeks ago
Solarisbank Wins Bid for ADAC Credit Card Portfolio