Promotion of micro, small and medium-sized enterprises (MSMEs)

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The project is part of the G20 Compact with Africa initiative, which aims, among other things, to improve the framework conditions for private investment in the participating African countries. The German government is supporting the initiative through so-called investment partnerships with funding commitments at a bilateral level. One such reform partnership was concluded with Senegal. The country is to be supported in removing obstacles to private sector development and increasing the private sector's contribution to gross domestic product. The program aims to improve sustainable access to needs-based financial services for MSMEs and thus contribute to promoting income and employment in Senegal. The individual module components of the program represent complementary approaches by offering companies of different sizes access to financing through several financial intermediaries. The program is flanked by an accompanying measure to support the financial intermediaries and to support selected institutional reforms by the Senegalese government. The following module components of the program are financed with this tranche: 1. The first module component comprises a subordinated local currency loan worth EUR 1,000. EUR 10 million to the Senegalese microfinance institution Union des Mutuelles Alliance de Crédit et dEpargne pour la Production (UM-ACEP). This is intended to strengthen the financial institution's regulatory capital and enable the further expansion of needs-based access to credit for MSMEs in Senegal. 2. The second module component includes a subordinated local currency loan of EUR 29 million to the ALCB Fund with the aim of supporting the establishment and expansion of the market for corporate bonds in local currency as a viable source of financing for Senegalese companies.