• IFC to provide a $120 million guarantee for SME loans in six African countries
• Two dedicated funds will support agriculture and small business financing
• Program includes advisory support with a focus on women-led enterprises

The International Finance Corporation plans to provide a $120 million guarantee to microfinance group Baobab to cover risks linked to loans granted to small and medium enterprises in six African countries. These include Burkina Faso, Côte d’Ivoire, the Democratic Republic of Congo, Madagascar, Mali, and Senegal.

The main goal is to improve access to financial services for underserved businesses, especially microenterprises, SMEs, and women-owned companies.

The project is built on two separate funds. The agriculture support fund, which can reach $70 million, will allow IFC to guarantee up to 70 % of a consolidated loan portfolio targeting smallholder farmers, cooperatives, agricultural SMEs, and intermediaries in the value chain. The SME support fund, with a maximum of $50 million, will cover 50 % of a loan portfolio dedicated to SMEs.

The support will be complemented by an advisory program designed to help agricultural businesses better manage their operations and expand their markets. Special attention will be given to women-led companies to promote inclusion and equal access to financing.

IFC expects the partnership to significantly increase SME lending by 2029, with strong portfolio growth across the six target countries. In the agricultural sector, the expected impact includes improved credit access, stronger value chains, and greater inclusion of women entrepreneurs.