Two Senegalese investment firms, Alliance Diaspora Economies Locales (ADEL) and CGF Bourse, have partnered with the UN Capital Development Fund (UNCDF) to create an investment fund intended to generate both profits and social returns. The fund, Fonds d’Investissement Territorial (FIT), is enlisting savings from individuals from Senegal – both within the country and those who have moved abroad – to provide funding, training and consulting “to the emerging middle class and migrants” who are building small and medium-sized enterprises (SMEs). The first disbursement is in the amount of XOF 58 million (USD 93,000) for a bakery being launched in Senegal by a business owner returning from Italy.
ADEL is a private equity firm that funds SMEs in Senegal, including via “investment clubs in Africa, Europe, and the US.” CGF Bourse, which was founded in 1998, arranges debt and equity investments primarily for firms in the eight countries of the West African Economic and Monetary Union. Financial information on the firms is not available.
Established in 1966 and headquartered in the US city of New York, UNCDF endeavors to create opportunities for poor people and their businesses by increasing access to microfinance and other forms of investment capital. The organization operates in 47 low-income countries in Africa, Asia and the Pacific with a particular focus on countries emerging from crises. For 2020, UNCDF had a budget of USD 75 million and supported initiatives providing financial services to 3 million unbanked and underbanked clients.
By Ben Greissman, Research Associate
Sources and Additional Resources
UNCDF press release
https://www.uncdf.org/article/7811/creation-of-the-territorial-investment-fund-fit-to-strengthen-the-involvement-of-the-senegalese-diaspora-in-local-productive-investments
ADEL homepage
https://adel-invest.com
CGF Bourse homepage
https://www.cgfbourse.com
UNCDF homepage
https://www.uncdf.org
Previous MicroCapital article on UNCDF
https://www.microcapital.org/microcapital-brief-uncdf-quizrr-ulula-wagely-supporting-financial-digital-literacy-for-garment-worker-in-bangladesh/
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: OPEC Fund Donating $1m to UNCDF to Boost Energy Access, Reduce Emissions, Starting in Madagascar, Tanzania
- MICROCAPITAL BRIEF: ILO, UNCDF to Expand PICAP Climate Microinsurance Program to 8 Pacific Countries
- MICROCAPITAL BRIEF: Jeevan Bikas, Pula, UNCDF Partner on Index Insurance for Farmers in Nepal
- MICROCAPITAL BRIEF: UNCDF, Bill & Melinda Gates Foundation Launch Mobile Money Program in Ethiopia
- MICROCAPITAL BRIEF: ABI to Leverage $69m from EIB to Boost SME, Mid-cap Financing in West Africa – Focusing on Women, Youth