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Proparco and ACEP Senegal: Empowering agri-business through inclusive microfinance
Proparco provides funding and support to businesses and financial institutions in Africa, Asia, Latin America, Eurasia and the Middle East. As a subsidiary of the AFD Group, Proparco’s activities aim to strengthen the contribution of private players to the achievement of the Sustainable Development Goals (SDGs). Its work focuses on three impact objectives: a sustainable and resilient economy; protecting the planet; and reducing inequalities.
Promoting responsible microfinance
Microfinance is a key driver for the financial inclusion of people who are generally excluded from traditional banking channels, particularly in rural areas or fragile contexts. Proparco supports players in the sector through customised financing and structural support in areas such as governance, financial security, ESG risk management and customer protection, particularly regarding over-indebtedness.
ACEP Senegal & Proparco: how microfinance is boosting small players in the agri-business sector by facilitating access to financial services
ACEP Senegal plays a key role in promoting entrepreneurship and developing small agricultural businesses. Through its activities, the microfinance institution promotes the economic inclusion of people who have traditionally been excluded from financing circuits. Souleymane Sarr, CEO of ACEP, explains: “Our customers are tradespeople, female entrepreneurs and small agricultural producers who, because of their financial fragility, are hit even harder by various economic, climate and political crises.”
While the institution primarily targets small producers, who are the mainstay of the local economy, it also deploys a strategy that covers the entire agri-food value chain.
With 90 branches across the country, ACEP Senegal works closely with rural populations. This geographical proximity facilitates a better understanding of needs and strengthens the bond of trust between the institution and people unfamiliar with financial services.
New funding for food sovereignty and the financial inclusion of women
ACEP Senegal has recently been granted a €10 million loan, helping it to meet two key challenges: ensuring food sovereignty and the financial inclusion of women.
Proparco's funding will enable the microfinance institution to increase its lending to small-scale producers and entrepreneurs across the agri-food chain. As Souleymane Sarr explains, “In our business plan for 2024-2026, we plan to increase the proportion of financing earmarked for the agri-food sector from 10% to 20%.” The line of credit is also expected to generate almost 7,500 jobs and provide support for nearly 2,300 micro and small to medium enterprises (MSMEs), half of which are in the agricultural sector and are primarily owned or run by women.
Through this financing, Proparco is creating economic opportunities and boosting the resilience of local economic systems in favour of a sustainable and resilient economy, while also helping to reduce gender inequalities.