The International Finance Corporation (IFC) signed a $40 million Islamic finance agreement with Banque Islamique du Sénégal (BIS) to expand lending to micro, small and medium-sized enterprises (SMEs).
The deal, concluded on Oct. 7, 2025 during the Invest in Senegal Forum, uses a Mourabaha structure compliant with Sharia principles. IFC said the transaction marks its first Islamic finance loan in Sub-Saharan Africa, signaling its intention to diversify financing tools in the region.
BIS to Triple SME Lending
BIS, Senegal’s fourth-largest bank with assets of 1.8 billion dollars at end-2024, said it plans to triple its SME loan portfolio to nearly $350 million over five years. The bank confirmed that at least 10% of the IFC funding will be allocated to women-led businesses.
“This partnership will allow the bank to expand its financing offer and better respond to the needs of small enterprises,” said BIS Managing Director Aminata Faye Seck.
In 2024, BIS had already disbursed 110 billion CFA francs in loans to SMEs in agriculture, agribusiness, industry and services.
Beyond financing, IFC will support BIS with advisory services to strengthen risk management, improve environmental and social standards, and design a targeted SME financing strategy.
At a global SME ministers’ meeting in Johannesburg in July, Senegal’s Secretary of State Ibrahima Thiam noted that SMEs make up 99.8% of the country’s businesses, generate 80% of jobs and contribute 36% of GDP. Yet, only 9% of bank loans go to SMEs, and 60% of small firms fail within their first year.
Although 94% of Senegal’s population is Muslim, Islamic finance remains underdeveloped. The IFC-BIS deal is expected to open the door for broader growth of the sector domestically and across West Africa.
Founded in 1983 as Massraf Fayçal Al Islam, BIS was one of the first institutions to introduce Islamic finance in Senegal.
This article was initially published in French by Chamberline Moko
Adapted in English by Ange Jason Quenum
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