Rural Finance Benin

completed

Objectives. The Rural Financing Benin project aims to improve access to target group-oriented, sustainable financial services for rural micro, small and medium-sized enterprises throughout Benin, thus enabling increased investment in production and operating resources. The project will therefore help improve productivity in rural areas and thus food security, create and secure income and jobs, and deepen and broaden the financial system. In the long term, this can make a contribution to reducing poverty. Planned measures. The project has a volume of EUR 9.9 million, which will be made available to the Republic of Benin as a grant as part of the special initiative One World Without Hunger (SEWoH). The Beninese Ministry of Finance will provide the funds as a subordinated (equity-like) loan to the cooperative umbrella organization FECECAM. The FC funds will be used to further expand the range of needs-based rural financial services. An accompanying measure (EUR 1 million) is intended to help the financial intermediary improve the quality of the financial services it offers and strengthen its operational and financial sustainability. The support of FECECAM in the midst of what can be described as a difficult environment strengthens the financial sector and has a structural effect on the provision of rural financial services.