MICROCAPITAL BRIEF: Kafo Jiginew of Mali Borrowing $11m for 7 Years from EIB for Microfinance for Groups Including Farmers, Women, Artisans, Rural Entrepreneurs

Kafo Jiginew, a credit union in Mali, today agreed to accept a loan equivalent to EUR 10 million (USD 10.8 million) in local currency from the EU’s European Investment Bank (EIB). EIB will support the investment with technical assistance for Kafo Jiginew staff regarding risk management. The loan carries a term of 7 years, with a grace period of 18 months.

The funding is expected to enable 60,000 loans to 15,000 small-scale agricultural producers, artisans, market traders and other low-income entrepreneurs. Many of these borrowers will be women, living in rural areas or both.

David Dao, the general manager of Kafo Jiginew, argued that, “The growth of microloans contributes to the economic and social development of Mali and the stability of the Sahel.”

One of the particular challenges that the funding will address is the impact on cotton farmers from the recent drop in the price of their produce. The loan also is intended to increase the resilience of small-scale farmers in general, as they are more susceptible than large-scale farmers to extreme variation in rainfall.

Kafo Jiginew serves 400,000 members of 19 cooperatives. EIB and Kafo Jiginew first began partnering in 2001.

Founded in 1958, the EIB is “focused on innovation, SMEs [small and medium-sized enterprises], infrastructure and climate,” primarily in EU member states and potential future member states. During 2019, the institution disbursed EUR 48 billion (USD 52 billion), about 10 percent of which it directed outside of the EU. Within Africa, it participated in public-private partnerships valued at a total of EUR 3 billion (USD 3.2 billion) during the year.

Sources and Additional Resources

Direct contact with EIB

Kafo Jiginew Facebook page
https://www.facebook.com/KAFO-Jiginew-593978367635005/

EIB homepage
https://www.eib.org

EIB Facts and Figures 2019
https://www.eib.org/attachments/general/the_eib_group_facts_and_figures_2019_en.pdf

More news on EIB from MicroCapital
https://www.microcapital.org/?s=EIB

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