|Approval Date||24 Sep 2019|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||24030|
The proposed operation is a EUR 15 million Line of Credit to the “Banque Nationale pour le Développement Economique (BNDE)” of Senegal with a 6-year maturity (including a two-year grace period). The BNDE was established in 2013 following the restructuring of the erstwhile publicowned Economic Promotion Fund (FPE). Nine of the bank’s thirteen branches are located in rural areas. BNDE needs long-term resources to finance agriculture-related activities, through the provision of financing for processing and industrialization within the agricultural value chain. The LoC will provide in particular BNDE with stable resources to improve the coverage ratio of its long-and medium-term commitments. The Bank's support will also assist BNDE in building the capacity of its agricultural credit officers, risk management, project management, environmental and social management systems as well as the management of development results. Indeed, a technical assistance from the Fund for Africa Private Sector Assistance (FAPA) to BNDE will enable it to strengthen its risk management system, and implement an environmental and social management system. This project, which complements the intervention of the AfDB and other donors in the agricultural value chain in Senegal, should help reduce food imports and contribute to the achievement of the development objectives of the emerging Senegal plan.
The line of credit (LOC) is aimed at financing some ten small and medium-sized enterprises (SMEs) in the agriculture, fisheries, poultry farming and agro-industry sectors. This funding aims to create more than 1,000 direct jobs in rural areas, mainly for young people. It will also help to promote women's empowerment. To this end, the LDC will help unlock access to financing for the most vulnerable populations, thus promoting the creation of wealth and local employment, which are essential for reducing poverty and the exodus of rural populations.
Fourteen SMEs from the agricultural, fishing, poultry and agribusiness sectors are reflected in the LoC pipeline. Through the 14 sub-projects, the operation is expected to create 1,016 direct jobs- particularly among young persons, and 300 are targeting women (30% of total jobs created). Additionally, 30% of the LoC will be dedicated to SMEs owned by young entrepreneurs. Furthermore, the technical assistance will be used by BNDE to provide training to entrepreneurs.
African Development Bank
|Last Update||07 Aug 2020|