Release date: 17 November 2022
Promoter – Financial Intermediary
COMPAGNIE FINANCIERE AFRICAINE COTE D'IVOIRE SA,COMPAGNIE FINANCIERE AFRICAINE SENEGAL SALocation
Description
The project consists in a credit line to Compagnie Financière Africaine (COFINA) Côte d'Ivoire and COFINA Senegal for on-lending to eligible small and medium sized businesses (SMEs) and MidCaps active in the agriculture value-chain. COFINA Group, a home-grown African financial group operating in 8 countries in Francophone Africa: Côte d'Ivoire, Burkina Faso, Mali, Guinea-Conakry, Congo-Brazzaville, Gabon, Senegal and most recently Togo.
Additionality and Impact
Access to finance is one of the main market constrains in Ivory Coast and Senegal, particularly for long-term financing for SMEs and even more in the agriculture sector.
The proposed operation aims at on-lending to private businesses, contributing to the private sector inclusive growth and job creation, while targeting agricultural value chains, climate action & sustainable environment and businesses owned, run, employing or primarily serving women, in line with the 2X Challenge criteria.
It will contribute towards addressing the market failure of imperfect information and the ensued obstacles to access to finance that SMEs are confronted with when applying for funding. This operation is aligned with the priorities expressed under the NDICI-Global Europe and the African Union's Agenda 2063. It will contribute to the achievement of Sustainable Development Goals 5 - gender equality; 8 - decent work and economic growth; 10 - reduce inequality; 11 - Sustainable Cities and Communities; 13 - climate action and 17 - partnerships for the goals.
The availability of longer-term funds in Euros will enable the borrowers to diversify their funding sources, extend the tenors of their underlying loan and continue deepening local financial markets. It is foreseen that technical assistance will be provided through the African Women Rising Initiative.
Objectives
The aim is to both support the agricultural sector and promote the financial inclusion of women in the countries covered by the operation. The project will have a positive impact on gender equality and women's economic empowerment.
Sector(s)
- Credit lines - Credit lines
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
EUR 26 million
Total cost (Approximate amount)
not applicable
Environmental aspects
COFINA should take all required measures to ensure that all procurement procedures carried out by the final beneficiaries for the financed sub-projects comply with national legislation and the ElB's Environmental and Social Standards, as well as international treaties and conventions signed and ratified by or otherwise applicable and binding in the country. The project will deliver significant positive environmental and social outcomes since it is focusing on climate action and sustainability and the application of the 2X Challenge investment criteria. Moreover, support to food value chains under the scheme can contribute to increased self-reliance, thus reducing vulnerability to external shocks.
Procurement
COFINA should take all required measures to ensure that all procurement procedures carried out by the final beneficiaries for the financed sub-projects comply with the EIB's Guide to Procurement.
Status
Signed - 5/07/2023
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).