Dimagi, a US-based provider of technical assistance to development organizations, recently developed CommBanane, a digital platform providing financial solutions to small-scale banana farmers via cooperatives in Senegal. CommBanane serves as a “data tracking system” for agricultural production and can be accessed by farmers to apply for loans via a mobile phone app. The platform, which is supported by the UN Capital Development Fund (UNCDF) and The Swedish International Development Cooperation Agency (SIDA), works via Baobab Sénégal, a member of France-based Baobab Group that provides digital microloans.
Cheikh Tidiane Gueye, Head of Development and Innovation at Baobab Sénégal, said, “CommBanane gives us the visibility over the business information of this underserved market. This is needed to mitigate the risk of lending for financial institutions interested in serving the most vulnerable.”
Baobab Sénégal has used the platform to approve USD 42,000 in loans, providing working capital to 472 smallholders in the Tambacounda region – of whom 29 percent are women – via 10 agri-cooperatives and one regional union of agri-producers.
As of 2020, Baobab Senegal has approximately 390,000 clients, 714 employees, and 48 agencies and service points. Baobab Group provides digital financial services to individuals and micro- and small businesses, primarily in Africa and China. Of its customers, 72 percent are microentrepreneurs, 53 percent are youth and 46 percent are women.
Founded in 2002, Dimagi is a certified B Corporation providing mobile solutions to improve “the quality and efficiency of global development programs.” With offices in India, South Africa and the US, the organization has 2,000 projects supporting NGOs, governments and other partners in 80 countries.
Founded in 1995, SIDA, Sweden’s government agency for reducing poverty in developing countries, distributed SEK 42.3 billion (USD 4.27 billion) during 2019.
Established in 1966 by the UN General Assembly, UNCDF works closely with the UN Development Programme. 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 40 countries in Africa and Asia with a particular commitment to countries emerging from crises. During 2019, UNCDF had a budget of USD 63 million and supported initiatives providing financial services to 3 million unbanked and underbanked clients.
By Romil Pandey, Research Associate
Sources and Additional Resources
UNCDF press release
https://www.uncdf.org/article/6249/bridging-the-financing-gap-for-agriculture-cooperatives-in-senegal
UNCDF case study
https://www.uncdf.org/article/6247/bridging-the-financing-gap-for-agriculture-cooperatives-through-data-driven-decision-making
UNCDF Annual Report 2019
https://www.uncdf.org/article/6126/2019-annual-report
Dimagi homepage
https://www.dimagi.com/
Baobab Group homepage
https://baobabgroup.com/
Baobab Sénégal webpage
https://baobabgroup.com/sn/
B Corporation homepage
https://bcorporation.net/
SIDA homepage
https://www.sida.se/
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