The Union of Caisses Mutuelles d’Epargne et de CrÃ©dit du Mali (Africa) “Kafo Jiginew” and the European Investment Bank signed on Monday February 24, 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 of the microfinance activities carried out by Kafo Jiginew, thanks to the first financing from the European Investment Bank received in 2001.
According to the Minister Delegate to the Minister of Economy and Finance, in charge of the Budget, Barry Aoua Sylla âIt must be recognized that these micro and small family-type enterprises are real engines of socio-economic activities in Mali and can be a powerful greyhound for development and sustainable growth, âshe acknowledged. The signing of the agreement took place in the presence of the head of European Union cooperation in Mali, GÃ©za Strammer, of the APC of Kafo Jiginew, Karim dit Karamoko KonatÃ©, and other government ministers. This was followed by a press conference.
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The loan to help transform access to finance
Worth $ 10.8 billion (CFAF 6.5 billion), this loan will help transform access to finance provided by Kafo Jiginew, according to the EIB’s regional representative in West Africa. âKafo Jiginew has long retained the trust of its customers and they have also earned and maintained our trust through the partnership that 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 funded.
The European Investment Bank will provide long-term financing to Kafo Jiginew in the local currency, the CFA franc. As a result, the costs and uncertainties of managing a foreign currency loan for a local currency loan will be avoided.
Cafo Jiginew congratulates 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 signature agreement. âThis deserves to be commended because we know how great the challenge is for micro-finance to access quality financing to enable inclusive and sustainable growth. This funding is granted at 6%. The duration is seven years, with a two-year grace period, âhe said.
In his speech, the Minister Delegate to the Minister of Economy and Finance, in charge of the Budget, Barry Aoua Sylla declared that âthe relevance of this agreement and its opportunity lies in its contribution to the promotion of income-generating activities in through loans granted to individual micro, small and medium-sized enterprises, formal and even non-formal.
The support contract for financings and economically profitable investments
It should be noted that the contract will undertake to support financing, economically profitable investments, investments that create added value and jobs in sectors with difficult access to bank credit in rural areas. These are mainly micro, small and medium enterprises in semi-urban and urban areas, women and young people. Above all, the agreement will support the economic development of rural areas in Mali.
(Featured Image By Josh Appel Going through Unsplash)
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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.
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