Startups, small and medium scale businesses in Cote d’Ivoire and Senegal have a new fund to tap from. The COFINA Group has announced the signing of a partnership with Proparco, a subsidiary of the Agence Française de Développement (AFD) group, for a total amount of 10 million euros. This amount is dedicated to the financing of customers of Cofina subsidiaries in Côte d’Ivoire (5 million euros) and in Senegal (5 million euros).
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“This new partnership with a prestigious development finance institution demonstrates Cofina’s position as a privileged channel to finance VSEs, SMEs and Entrepreneurs. By targeting the “missing middle” of African ecosystems, Cofina reaches a wide range of entrepreneurs from entrepreneurs who are not the core target customers of microfinance institutes or traditional banks,’’ Cofina group noted in a statement.
Here Is What You Need To Know
- Present in 7 countries in West and Central Africa, Cofina is a key player in the financing of entrepreneurship with more than 85,000 business projects funded.
- This partnership with Proparco should make it possible to finance at least 1000 entrepreneurs in each of the two countries, Côte d’Ivoire and Senegal.
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“While many entrepreneurs will face cash flow difficulties and complications in accessing credit in the coming months, it is important that financial institutions are able to provide them with liquidity,’’ the statement further noted.
In this period of economic crisis linked to Covid-19, the Cofina Group is a privileged partner of international donors like Proparco but also of the Dutch development bank FMO as part of their objectives of supporting the emergence of the African private sector.
“Despite the crisis that we are going through, this new partnership demonstrates the confidence of international financial players in the Cofina Group,” said Jean-Luc Konan, President and CEO of the institution. This confirms Cofina’s leading position in African mesofinance, placing us as a financial institution with a strong impact on the real economy ”.
- For its part, the Regional Director of Proparco, Fatoumata Sissoko-Sy said:
“This commitment to our partners takes on a particular meaning in the current crisis and supporting a key player in mesofinance is a priority for Proparco because this loan will allow Cofina to strengthen its support for the Ivorian and Senegalese economies during this difficult period and will help businesses get through this crisis.”
A Look At What Proparco Does
A subsidiary of the AFD group dedicated to the private sector, Proparco has been working for 40 years to promote sustainable development in economic, social and environmental matters. Proparco participates in the financing and support of companies and financial institutions in Africa, Asia, Latin America and the Middle East. Its action focuses on the key development sectors: infrastructure with a focus on renewable energies, agro-industry, financial institutions, health, education … Its interventions aim to strengthen the contribution of private actors to achievement of the Sustainable Development Goals (SDGs), adopted by the international community in 2015. To this end, Proparco finances companies whose activity contributes to the creation of jobs and decent income, to the supply of goods and services essential, as well as the fight against climate change. More information: www.proparco.fr and @Proparco.
A Look At The Cofina Group
Founded in 2013, the COFINA Group is the first African financial institution dedicated to mesofinance, the “missing link” between microfinance and traditional banking which offers the possibility for African SMEs (90% of the continent’s private companies) to access more easily to credit. Present in seven African countries (Burkina Faso, Congo-Brazzaville, Ivory Coast, Gabon, Guinea Conakry, Mali, Senegal) and with a representative office in Paris dedicated to the diaspora, COFINA has already financed more than 85,000 business projects, 48% of which are led by women entrepreneurs. COFINA has established itself in recent years as the benchmark for financing small and medium-sized enterprises in West and Central Africa. COFINA has taken on the challenge of reducing the financial divide which afflicts a large part of the new African middle class. With more than 1,300 employees, COFINA manages a portfolio of more than 175,000 clients and 85,000 funded business projects, spread across its seven countries. As of December 31, 2019, the institution posted a total balance sheet of 212 billion CFA francs. To find out more: www.groupecofina.com.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.