The National Bank for Agricultural Development (BNDA) of Mali obtained a $40 million senior loan from the Financial Corporation International (SFI), a subsidiary of the World Bank Group, in order to strengthen the financing of micro, small and medium-sized enterprises (MSMEs) in the agricultural sector, one of the engines of the country's economy. An envelope An additional $10 million from the SFI, will be devoted to international trade financing, in order to facilitate imports and exports of essential goods

The loan in the amount of 40 million US dollars granted by IFC will allow BNDA to double its credit portfolio aimed at small and medium-sized enterprises (SMEs) in Mali, to reach more of $270 million over the next five years. The focus will be focused on smallholder farmers, cooperatives and businesses oriented towards sustainable agriculture.

At least 25% of this funding will be directed to businesses owned or run by women, while 10% will support projects related to climate-smart agriculture and energies renewable and sustainable irrigation.

This financing is expected to generate between 8,600 and 14,200 jobs. direct and indirect over the next five years, and increase closely by 90% of BNDA's green financing portfolio. The IFC loan is also associated with an international trade finance facility of 10% millions of dollars that will support the import and export of goods essentials.

“Reducing funding gaps across sectors agriculture and SMEs in Mali is essential to stimulate the economy and strengthen an agricultural sector that is the heart of the country's economic life. This investment demonstrates our commitment to supporting key institutions that promote resilience and inclusive growth for the benefit of vulnerable populations and rural communities. In collaboration with the BNDA, we are working to expand access to finance, to strengthen resilience, to create jobs and to develop green financing solutions.”, a said Aliou Maiga, IFC regional director for the Institutions group financial (FIG) in Africa.

“The mission of BNDA has always been to support rural communities and actors in the agricultural economy of Mali. Ce partnering with IFC will allow us to increase our support for farmers, to SMEs and women entrepreneurs across the country. He will help us also to incorporate more digital and sustainable solutions, expanding thus access to finance, improving productivity and strengthening the national food security”, said Badara Aliou Coulibaly, Director General from BNDA.

In addition to funding, IFC would provide consultancy services to strengthen BNDA's agricultural financing strategy and its institutional capacities. This approach would be part of a vision holistic, aimed at optimizing risk management, at integrating finance green and to promote gender inclusion at the heart of the economic model of BANDA. It would also support the development of adapted tools, such as credit scoring systems.