(Ecofin Agency) - Crédit Mutuel du Sénégal (CMS) announced it has obtained a loan of €5million ($5.8 million) from the Dutch investment company Oikocredit. The beneficiary will use the money to strengthen its loan portfolio, with a focus on the agricultural sector and activities in rural and peri-urban areas.
“Through this loan, CMS is renewing its successful relationship with Oikocredit and plans to consolidate this partnership as part of its development plan. The shared interest in financial inclusion and sustainable improvement of the living conditions of low-income people makes it easier and more attractive for CMS and Oikocredit to work together. CMS aims to strengthen its regional leadership in financial inclusion and looks forward to having Oikocredit as a partner to support us in this plan,” said Amadou Jean-Jacques Diop, Managing Director of CMS.
As a reminder, the Dutch company has been investing in the Senegalese microfinance institution since 2007. Most of its investments are directed toward the energy, agriculture, and financial services sectors in emerging markets.
The Senegalese Finance Ministry revealed in its 2020 annual activity report that the majority of Senegalese microfinance institutions took medium- and long-term loans last year. The volume of funding received increased by 13% YoY to CFA89 billion ($157.2 billion).