MICROCAPITAL BRIEF: ADEL, CGF Bourse, UNCDF Announce First Disbursement from Fonds d’Investissement Territorial (FIT), Harnessing Diaspora to Invest in SMEs in Senegal

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/

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