By Dipo Olowookere
Sweden’s development finance institution, Swedfund, is putting about €20 million into Compagnie Financière Africaine (COFINA) to provide loans to Micro, Small and Medium-sized Enterprises (MSMEs) in the West and Central African regions.
The credit facility is to enable the beneficiaries to grow their businesses, particularly women entrepreneurs, who have been starved of funds needed for growth.
Lack of financial education and income instability limit the ability of many people to participate in the formal financial system. In Côte d’Ivoire and Senegal, there is a significant gap in women’s access to formal financial services.
“COFINA is an institution that is playing a key role in providing finance to MSMEs that are typically overlooked by traditional banks. Our investment will support entrepreneurship in West Africa, empowering underserved groups, including women entrepreneurs,” the Senior Investment Manager at Swedfund, Björn Areskog, stated.
It was disclosed that the loan would target the underserved segments of MSMEs, women entrepreneurs and agribusinesses in Côte d’Ivoire and Senegal. The investment is expected to contribute to job creation and business growth and improved livelihoods.
Non-banking financial institutions account for a small share of the financial sector in West Africa, but they are important in advancing financial inclusion by targeting clients who generally do not have access to banking services, such as low-income households and MSMEs.
Swedfund’s investment will be dedicated to the subsidiaries FIN’Elle, which focuses on women entrepreneurs, as well as to COFINA Côte d’Ivoire and COFINA Senegal, which focus on MSMEs.
The credit facility is supported up to 50 per cent through a guarantee by the European Union under EFSD+ as a contribution to the Global Gateway investment priority of Financial Inclusion.
“We are committed to supporting impactful companies across West Africa, a key region for Swedfund as we increase investments on the African continent.
“DFIs can play an instrumental role in the development of local capital markets by providing long-term capital which is otherwise scarce.
“We believe that this transaction will contribute to further establishing our presence in the region,” the Regional Director for West Africa at Swedfund, Kitanha Toure, commented.
Also, the Director of Strategy at Groupe COFINA, Serge Massamba, said, “Gender equality is a strategic advantage for African businesses, boosting innovation, performance, and sustainability. By empowering women, companies unlock growth opportunities and drive long-term success.
“Groupe COFINA has made this a priority. So, we are delighted to have reached this financing agreement with Swedfund.”