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Senegal: developing financial inclusion to support entrepreneurship and women

Project

Signature PAMECAS Sénégal
Signature date
Location
Senegal
Financing tool
Loan, Technical assistance
Financing amount (Euro)
4000000
Financing details
EUR 4m loan
Customer
UM PAMECAS
Type of customer
Microfinance
Country of headquarters
Senegal
Project number
PSN1084
Environmental and social ranking
IF-C
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This project is carried out with the support of the European Union and is part of the 2X Challenge initiative.

Mention UE + 2X Challenge UK

The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union. This information is given at the time of signature, without prejudice to any developments in the operation/project.

Proparco is working alongside Cassa depositi e prestiti (CDP) with PAMECAS to finance its microcredit portfolio for Senegalese entrepreneurs.

Client presentation

PAMECAS was created in 1995 as a project implemented under the Senegalese government's international cooperation policy. At the completion of the project in 1999, nineteen savings and credit unions had been set up thanks to the commitment and determination of the people who rapidly became members despite an unfavorable economic climate. 

PAMECAS is now one of the leading microfinance institutions in Senegal. Through its commitment to microentrepreneurs and MSMEs, particularly in the trade, agriculture and livestock sectors, the microfinance institution plays a major role in social development in Senegal. It offers credit and savings products to its 850,000 members and currently has over 90,000 borrowers.

Project description

By allocating loans totaling EUR 8m (FCFA 5.2bn) to PAMECAS, Proparco and Cassa depositi e prestiti (CDP) will allow it to expand its microcredit portfolio for Senegalese entrepreneurs. 

This project is part of Proparco's and CDP's response plans to the crisis caused by Covid-19. As such, it benefits from guarantees from the European Union's External Investment Plan (EFSD) designed to support small businesses affected by the crisis and encourage local banks to finance them more.

Proparco has also recruited a consultant to strengthen the agricultural finance activity of PAMECAS.

Project impact

The main expected impacts are as follows:

  • Over 3,800 additional clients should benefit from a micro-loan. The majority are women as they account for almost 60% of active borrowers, a proportion that PAMECAS wishes to maintain above 50%. In this respect, the project is eligible for the 2X Challenge.
  • Support for nearly 1,500 direct and indirect jobs over the next 5 years. 66% of PAMECAS’ employees are women. 

The project will thereby contribute to the achievement of SDG 8 (Decent work and economic growth), SDG 5 (Gender equality) and SDG 10 (Reduced inequalities).