Burkina Faso: Programme launched to improve access to finance for agricultural SMEs

Dec 28, 2011

The first loans to small and medium-sized enterprises (SMEs) in Burkina Faso's agricultural sector will be granted in January 2012, as part of an agricultural development project from the Millennium Challenge Account Burkina Faso (MCA-BF).

The first loans to small and medium-sized enterprises (SMEs) in Burkina Faso's agricultural sector will be granted in January 2012, as part of an agricultural development project from the Millennium Challenge Account Burkina Faso (MCA-BF).

This announcement was made last week by Drissa Sirima, Head of Rural Finance at the MCA-BF, who told Sidwaya newspaper that the access to rural finance facility's main objective is to promote the development of agriculture.

Born from a partnership between the Burkinabe government and the US through the Millennium Challenge Corporation fund, it should increase the production capacities of producers in order to meet the financial needs of the rural world.

"The initiative will not only finance the producers' activities through support to financial institutions themselves, but also provide support to the final borrowers, our brave peasants," Mr Sirima told Sidwaya.

Some $10 million (£7.65 million) will be made available to financial institutions. They will then grant loans with an 18 month minimum, ranging from CFAF 1 million (€1,525) and CFAF 50 million. The objective is to lend money to at least 1,000 to 1,250 borrowers.

Agriculture is at the heart of the Burkinabe economy and it employs more than 80 percent of the active population.ADNFCR-2976-ID-801250107-ADNFCR