Senegal - Banque Nationale pour le Développement Economique (BNDE)

The proposed operation is a EUR 15 million Line of Credit to the “Banque Nationale pour le Développement Economique (BNDE)” of Senegal with a 6-year maturity (including a two-year grace period). The BNDE was established in 2013 following the restructuring of the erstwhile publicowned Economic Promotion Fund (FPE). Nine of the bank’s thirteen branches are located in rural areas. BNDE needs long-term resources to finance agriculture-related activities, through the provision of financing for processing and industrialization within the agricultural value chain. The LoC will provide in particular BNDE with stable resources to improve the coverage ratio of its long-and medium-term commitments. The Bank's support will also assist BNDE in building the capacity of its agricultural credit officers, risk management, project management, environmental and social management systems as well as the management of development results. Indeed, a technical assistance from the Fund for Africa Private Sector Assistance (FAPA) to BNDE will enable it to strengthen its risk management system, and implement an environmental and social management system. This project, which complements the intervention of the AfDB and other donors in the agricultural value chain in Senegal, should help reduce food imports and contribute to the achievement of the development objectives of the emerging Senegal plan.