MICROCAPITAL BRIEF: West African Development Bank (WADB) Loans $3m to Kafo Jiginew, a Malian Microfinance Institution (MFI) and Funder of Credit Unions

The West African Development Bank (WADB), an international development bank based in Lomé, Togo, and Kafo Jiginew, a microfinance institution (MFI) based in Mali, have come to terms on a XOF 1.5 billion (USD 3.03 million) loan to Kafo Jiginew to expand its financing of local agricultural projects, including loans to cotton growers and credit unions.

Kafo Jiginew will repay the loan over a period of five years at an annual interest rate of five percent. WADB has also granted the MFI a two-year grace period on repayments.

During 2010, Kafo Jiginew reportedly received loans totaling XOF 17 billion (USD 34.3 million) from unspecified sources. In 2011, it plans to raise XOF 27 billion (USD 53.3 million) from which it will disburse XOF 25.4 billion (USD 50.2 million) as loans to customers [1].

By John Howard-Smith, Research Associate

About West African Development Bank (WADB): The West African Development Bank (WADB) is an international development finance institution founded in 1973 and based in Lomé, Togo. Funded by regional member states, extra-regional states and international agencies, it serves the West African nations of Benin, Burkina-Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo. WADB focuses on poverty reduction, economic integration and promotion of private sector activity.

About Kafo Jiginew: Founded in 1987, Kafo Jiginew is a microfinance institution (MFI) comprised of a federation of credit unions in Mali. In 1995, Kafo Jiginew began providing loans to cotton farmers guaranteed by Companie Malienne de Developpement et de Textiles (CMDT), Mali’s quasi-governmental cotton manufacturer. These “Cotton Loans” constitute 75 percent of Kafo Jiginew’s loan volume. As of 2009, Kafo Jiginew had USD 54.2 million in total assets, a gross loan portfolio of USD 34.7 million, return on assets of 0.82 percent and return on equity of 4.52 percent.

[1] African Manager: “WADB grants 1.5b FCFA to Malian microfinance company for agric projects”, http://www.africanmanager.com/site_eng/detail_article.php?art_id=16077

MicroCapital’s Microfinance Universe profile: West African Development Bank (WADB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=West+African+Development+Bank+(WADB)

MicroCapital’s Microfinance Universe profile: Kafo Jiginew, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kafo+Jiginew

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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