- Swedfund has invested in West and Central Africa, helping close the MSME finance gap in Côte d’Ivoire and Senegal
- The €20 million investment is expected to contribute to job creation, business growth and improved livelihoods
Senegal – Swedfund has invested €20 million in Compagnie Financière Africaine (COFINA), a leading mesofinance institution that provides loans to businesses in West and Central Africa to enable them to develop and grow their business.
Micro, small, and medium-sized enterprises (MSMEs) in the region often face difficulties in accessing capital to grow, increase productivity, and develop their businesses.
This is particularly true for women entrepreneurs. Lack of financial education and income instability limit the ability of many people to participate in the formal financial system.
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In Côte d’Ivoire and Senegal, there is a significant gap in women’s access to formal financial services.
Swedfund’s loan will target the underserved segments of MSMEs, women entrepreneurs and agribusinesses in Côte d’Ivoire and Senegal.
The investment is expected to contribute to job creation, business growth and improved livelihoods.
“COFINA is a key institution 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,” said Björn Areskog, Senior Investment Manager at Swedfund.
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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.
“We are committed to supporting impactful companies across West Africa, a key region for Swedfund, as we increase investments on the African continent. DFIs can play an instrumental role in the development of local capital markets by providing long-term capital, which is otherwise scarce. We believe that this transaction will contribute to further establishing our presence in the region,” said Kitanha Toure, Regional Director for West Africa, Swedfund.
Swedfund’s investment will be dedicated to the subsidiaries FIN’Elle, which focuses on women entrepreneurs, and COFINA Côte d’Ivoire and COFINA Senegal, which focus on MSMEs.
“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,” said 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.
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