Senegal : Locafrique to provide €4.3 million worth of agricultural loans

Nov 14, 2013

USAID and credit institution Locafrique signed a CFAF2.8 billion (€ 4.3 million) guaranteed leasing agreement.

USAID and credit institution Locafrique signed a CFAF2.8 billion (€ 4.3 million) guaranteed leasing agreement.

This financing will allow Locafrique to grant loans guaranteed up to 50 percent over a period of ten years. The objective of this agreement is to expand and modernise agriculture in Senegal .

Promoters based in rural areas will have access to a range of financial services with low collateral requirements to access credit.

Leasing " will promote the finalisation of credit transactions in favour of investment projects for the mechanisation of companies operating in the agricultural sector," said the Minister of Economy and Finance Amadou Ba, quoted by the newspaper Le Soleil.

The Deputy Administrator of USAID , Richard Greene, highlighted the difficulties that small and medium-sized enterprises are facing to access finance . "In effect , less than four percent of total bank lending went to the agricultural sector in 2013," he said.

Agriculture is an important part of the economy , with the primary sector accounting for about 16 percent of GDP, according to figures from the African Development Bank.ADNFCR-2976-ID-801660499-ADNFCR