President of Senegal Macky Sall opens EIB-UN Habitat Africa Day 2020
New EIB support for leading African microfinance and business investment partners confirmed
Expanded activity by Baobab Senegal and Alterfin to enable 28,000 entrepreneurs to expand
New investment with Development Partners International to create economic growth across the continent
President of Senegal Macky Sall and President of the European Investment Bank Werner Hoyer today opened the EIB-UN Habitat Africa Day 2020 conference in Dakar.
More than 400 government ministers, business leaders, academics and civil society representatives, as well as mayors from across Africa are attending the largest ever conference hosted by the EIB focusing on investment in Africa.
A total of EUR 63 million new EIB financing that will enhance access to microfinance, support corporate investment and improve banking skills in Senegal and across Africa was formally agreed at Africa Day 2020.
Three new deals were signed at Africa Day 2020 to support new investment that will enhance access to finance and accelerate infrastructure development.
“The European Investment Bank, the EU Bank, is committed to enabling African entrepreneurs and business to harness new opportunities and expand. EUR 63 million of new cooperation with leading microfinance and development investment partners agreed today in Dakar will transform access to finance, create thousands of jobs and improve specialist banking skills here in Senegal and across the continent. The EIB looks forward to further strengthening cooperation with Baobab Senegal, Alterfin and DPI that reflects our shared commitment to ensuring that African business can flourish, create jobs and contribute to sustainable development. Last year 60% of the European Investment Bank’s EUR 3 billion engagement in Africa supported new business investment” said Werner Hoyer, European Investment Bank President.
Working with Baobab Senegal to ensuring female entrepreneurs can flourish
Under a new EUR 7 million agreement Baobab will provide an estimated 17,200 new loans to small scale entrepreneurs across Senegal.
“Baobab Senegal and the Baobab Group are committed to expanding access to finance and supporting financing inclusion in Africa. We are pleased to work with the European Investment Bank, that has been a strategic investor since 2017, and supported the continued expansion of our services to new customers in rural and urban areas. Baobab Group and the European Investment Bank share the goal of increasing financial inclusion to help small businesses to grow, allow families to invest in school and healthcare and save for emergencies.” said Mamadou Cissé. CEO of Baobab Senegal.
Around 45% of the new business lending activity will support female entrepreneurs. The new EIB financing will support more than 7,500 jobs in a range of sectors including agriculture and agribusiness.
Partnership with Alterfin to supporting 41,000 entrepreneurs
The European Investment Bank will provide EUR 6 million Alterfin to strengthen access to microfinance by rural communities in Senegal and countries across West Africa.
“Access to finance is crucial for farmers and entrepreneurs to expand, create jobs and contribute to sustainable economic and social development. We are pleased to strengthen our long-standing cooperation with the European Investment Bank with this new partnership which will generate new opportunities for communities vulnerable to climate change and economic uncertainties.” said Jean-Marc Debricon, Chief Executive Officer of Alterfin
The average microfinance loan sized is expected to be EUR 440 and more than 41,000 small-scale loans are expected to be provided following under the new EIB support confirmed today.
Scaling up business investment to drive job creation across Africa with DPI
New private equity investment in a fund advised by Development Partners International across Africa, backed by USD 50 million of new EIB financing, will enable companies across the continent to expand and develop new markets.
“DPI has a proven track record of helping companies across Africa expand, while also focusing on high-impact areas such as climate change, gender diversity and job creation.. We continue to seek investment opportunities across the continent in which growth can be generated for businesses and communities alike, while delivering strong returns for our investors.” said Miles Morland, Chairman, DPI.
Building on EUR 3 billion EIB engagement in Africa last year
The European Investment Bank is the world’s largest international public bank and supports investment in more than 160 countries worldwide.
Last year the EIB provided EUR 3 billion for new public and private investment across Africa.
The European Investment Bank has technical and financial teams in nine African cities and provided more than EUR 45 billion for investment across Africa over more than 57 years.
Amadou Hott, Senegalese Minister of the Economy, Planning and Cooperation, and Ambroise Fayolle, EIB Vice-President responsible for Africa, today formally agreed a CFAF 49 billion concessional loan to the Republic of Senegal. It comes on top of a CFAF 200 billion financing mechanism established by Macky Sall, President of the Republic of Senegal, as part of the country’s Economic and Social Resilience Programme.
Through the financing of the construction of two solar power plants in Senegal, Proparco, IFC and EIB are reaffirming their commitment to sustainable development on the African continent. These two new large-scale power plants, the 7th and 8th built in Senegal in less than 3 years, illustrate the strong momentum underway in the country towards a low-carbon energy transition.
On the occasion of the European Development Days under the patronage of H.E. Macky Sall, President of the Republic of Senegal, Mr Amadou BA, Minister for the Economy, Finance and the Senegal Plan, and Mr Ambroise Fayolle, Vice-President of the EIB, signed a finance contract worth EUR 22m in support of the new Pont de Rosso bridge over the Senegal river. Located on a key regional artery, the Pont de Rosso bridge will complete one of the missing links of the trans-African corridor and boost economic activity along the Tangier-Lagos and Algiers-Dakar corridors.