(Ecofin Agency) - The Senegalese microfinance institution UM-ACEP (Union des Mutuelles Alliance de Crédit et d'Epargne pour la Production) is negotiating a five-year senior loan in local currency of up to $10 million from the International Finance Corporation (IFC). The IFC Board will provide a decision on March 25.

UM-ACEP says it will use the resources to support microenterprises operating mainly in rural areas in Senegal. The country had nearly 303 microfinance institutions (MFIs) at the end of 2018. Outstanding credit granted by these MFIs during the same period amounted to CFA439 billion, representing 11.6% of total credit granted to the economy in 2018.

In February last year, in a report entitled “Banking in Africa: financing transformation amid uncertainty,” the European Investment Bank (EIB) ranks Senegal as the first country in the WAEMU (West African Monetary Union) zone with the largest microfinance sector.

Chamberline Moko