SME GEM Senegal

completed

This project involves a Risk Sharing Facility (RSF) in the local currency equivalent of $2 million ($4 million portfolio size). The RSF will apply to a portfolio of new loans to be extended to women-owned Micro, Small and Medium Enterprises (MSMEs) by Ecobank Senegal (EBS or the Bank), the bank selected for this RSF. The RSF will cover up to 50% of the credit risk of the Bank’s portfolio of new loans to women-owned MSMEs (the Borrowers). The Bank will share all losses on a 50-50 basis with the IFC.In addition to the guarantee, the project envisages two Advisory Services (AS) components: - AS to the bank, with the objective of better servicing women-owned MSMEs sector; and - AS to women-owned MSMEs, which aims to bridge the gap between these potential borrowers and the bank by providing some financial and management training to women-owned MSMEs.This combined investment and AS program presents a unique opportunity for IFC to provide practical interventions both at the institutional and firm levels. The program will help increase the capacity of EBS to outreach to women entrepreneurs, while at the same time providing businesswomen with much needed financial literacy and management skills. This will enhance their ability to access and properly use commercial bank finance.