Rural Financing Benin II (VPT)

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The Rural Financing Benin Phase I 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 thus contributes to improving productivity in rural areas and thus to food security, to creating and securing income and jobs, and to deepening and broadening the financial system. In the long term, this can make a contribution to reducing poverty. The project has a volume of around EUR 14.5 million, which will be made available to the Republic of Benin as a grant from Financial Cooperation as part of the special initiative ONE WORLD without Hunger (SEWOH). The project sponsor will be able to continue its growth path and thus expand its loan business thanks to the portion of the FZ-SEWOH funds passed on to it by the recipient as a subordinated loan. The portion of the FZ-SEWOH funds passed on to it by the recipient as a grant can further increase the sponsor's cost efficiency. In addition to the digitization of the carrier's core software, the digitization of the credit products developed in Phase I will also be supported. As in Phase I, an implementation consultant is planned for Phase II to ensure the success of the digitization measures. The promotion of FECECAM in the midst of what can be described as a difficult environment strengthens the financial sector and has a structuring effect on the range of agricultural financial services available.