Compagnie Financière Africaine (Cofina), a mesofinance institution providing loans to businesses in West and Central Africa to enable them to develop and grow their business has received $21.2 million from Swedfund to fund micro, small and medium-sized enterprises (MSMEs) in the region.
Swedfund’s loan will target the underserved segments of MSMEs, women entrepreneurs and agribusinesses in Côte d’Ivoire and Senegal to contribute to job creation and business growth and improved livelihoods.
“Cofina is an institution that is playing a key role in providing finance to MSMEs that are typically overlooked by traditional banks. Our investment will support entrepreneurship in West Africa, empowering underserved groups, including women entrepreneurs, says Björn Areskog Senior Investment Manager at Swedfund.
In 2019, Cofina received EUR 12m of long term debt from BIO to fund its most mature entities, being in Senegal and Ivory Coast to support the growth of their MSME portfolio. Non-banking financial institutions account for a small share of the financial sector in West Africa, but they are important in advancing financial inclusion by targeting clients who generally do not have access to banking services, such as low-income households and MSMEs.
Cofina provides easier credit access for SMEs in Burkina Faso, Congo, Côte d’Ivoire, Gabon, Guinea, Mali, Senegal, Togo and France (serving the diaspora). The firm offers meso- and micro-credits, insurance, digital banking, and structured financing and has over 340,000 customers, 2,200 employees. Cofina has financed more than 170,000 projects and injected nearly 1,500 billion CFA francs into local economies. Its mission is to add value for partners and support sustainable development in Africa especially women and youth.
“Gender equality is a strategic advantage for African businesses, boosting innovation, performance, and sustainability. By empowering women, companies unlock growth opportunities and drive long-term success. Groupe Cofina has made this a priority. So, we are delighted to have reached this financing agreement with Swedfund, says Serge Massamba, Director of Strategy at Groupe Cofina.
Swedfund’s loan is supported up to 50% through a guarantee by the European Union under EFSD+ as a contribution to the Global Gateway investment priority of Financial Inclusion. Swedfund’s investment will be dedicated to the subsidiaries FIN’Elle, which focuses on women entrepreneurs, as well as to Cofina Côte d’Ivoire and Cofina Senegal, which focus on MSMEs.