€10M partnership in favor of African entrepreneurship between the EIB and the Foundation

FGCA/Didier Gentilhomme

February 16, 2022

Small entrepreneurs on the African continent will benefit from a €10 million partnership between the European Investment Bank and the Grameen Crédit Agricole Foundation.

• Continued cooperation to strengthen access to microfinance for disadvantaged rural entrepreneurs affected by the COVID-19 pandemic
• Program to support microfinance institutions in different African countries, with a focus on gender equality
• African private sector to benefit from local currency financing and support for small microfinance institutions

Access to finance for entrepreneurs and businesses affected by COVID-19 in rural areas of sub-Saharan countries will be boosted by a new €10 million targeted financing initiative launched by the European Investment Bank (EIB) and the Grameen Crédit Agricole Foundation ahead of the first EU-Africa summit since the pandemic.

This latest cooperation between the European Investment Bank, the world's largest international public bank, and the Grameen Crédit Agricole Foundation, a leading provider of microfinance across Africa, will focus on ensuring that small businesses can access finance, create jobs, and combat poverty.

“Ensuring that entrepreneurs and communities in Africa can access finance is essential to generate new opportunities, accelerate social inclusion, and strengthen economic resilience in the face of the challenges brought about by the COVID-19 pandemic. The EIB is committed to supporting microfinance across Africa, and we are pleased to strengthen our long-standing cooperation with the Grameen Crédit Agricole Foundation. Today’s €10 million commitment will directly benefit small businesses across the continent,” said Ambroise Fayolle, Vice-President of the European Investment Bank.

“Providing targeted financing in fragile regions is essential to combat poverty, prevent social exclusion, and generate new opportunities that stimulate economic growth. This new cooperation between the EIB and our Foundation will strengthen entrepreneurs’ access to financing in sectors affected by COVID-19 and in remote and rural communities,” said Éric Campos, Managing Director of the Grameen Crédit Agricole Foundation.

The new Pan-African Microfinance Partnership was officially agreed in Brussels earlier today ahead of the EU-Africa Summit at the EU-Africa Business Forum.

Improving private sector access to finance in disadvantaged communities

The new cooperation between the EIB and the Grameen Crédit Agricole Foundation will help strengthen microfinance activity across Africa by providing long-term, local currency financing to local microfinance institutions.

The investment is expected to finance more than 147,000 loans for self-employed individuals and microenterprises, while maintaining up to 36,000 jobs. Given the importance of empowering women and girls across Africa, the program will finance approximately 98,000 loans for women entrepreneurs.

Addressing the challenges that hinder microfinance in Africa

This new initiative will support microfinance institutions smaller than those the EIB can finance directly. These microfinance partners are often unable to benefit from financing from local commercial banks and are unable to expand.

This initiative will contribute to financial and social inclusion and is expected to support entrepreneurs in remote areas, women-run microenterprises, and young people with limited or no access to financial services. These vulnerable and underserved segments are also the most affected by the COVID-19 pandemic.

Supporting fragile regions in Africa

The Grameen Crédit Agricole Foundation will be able to allocate the loan to numerous microfinance institutions in sub-Saharan Africa. The network of partner microfinance institutions covers sixteen countries in the region, including fragile states such as Benin, Togo, Niger, and Malawi.

Building on long-standing cooperation between microfinance partners

The European Investment Bank and the Grameen Crédit Agricole Foundation have been working together since 2018 to strengthen microfinance in Africa, working to improve good practices in microfinance and help entrepreneurs improve their professional skills through technical assistance projects.

The European Investment Bank is the largest international public bank and has committed more than €8 billion in new investments in Africa since the start of the pandemic.

The European Investment Bank (EIB) is the European Union's long-term lending institution, owned by its Member States. It provides long-term financing for sound investments to help achieve the EU's policy objectives.

Created in 2008 as a joint initiative of Crédit Agricole and Nobel Peace Prize winner Professor Muhammad Yunus, the Grameen Crédit Agricole Foundation finances and supports microfinance institutions and social enterprises in nearly 40 countries with technical assistance.