Kafo Jiginew, resilient in the face of the Covid-19 crisis in Mali

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The Covid-19 crisis has impacted the activity of Kafo Jiginew, a microfinance institution funded by the Grameen Crédit Agricole Foundation since 2018. This is primarily due to the slowdown in international economic activity, which has impacted savings growth, but also due to the demand for credit, which has also declined. This overview was presented by David Dao, Director of Kafo Jiginew, during an interview given on the occasion of the presentation of donations worth 25 million FCFA to the widows and orphans of Malian soldiers who are part of the institution's membership.

Covid-19 has also affected the Malian cotton sector, which is largely financed by the institution, which has seen its demand decline on the global market. Credit requests from cotton producers have decreased, which for the institution represents a significant drop in financial income. Another consequence is the increased risk of loan defaults, which could weigh on Kafo's financial profitability in 2020. David Dao, however, expects a positive result for 2020 and asserts that the situation will not affect the existence of the institution, which is solid.

Kafo Jiginew remains the leader in microfinance in Mali with at least 40% market share, 430,000 clients, and a portfolio of 68 billion FCFA. Since 2014, the institution has entered a phase of profitability that continues. In 2015, Kafo Jiginew also initiated a global rating operation with MFR – Microfinanza Rating, an international audit firm that evaluates and rates its financial and social performance. These best practices ensure transparency vis-à-vis international donors such as the Grameen Crédit Agricole Foundation, which will remain committed alongside its partners to address the current crisis.

Source: Bamada.net