Closing MSME finance gap in Côte d’Ivoire and Senegal

Swedfund has invested EUR 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 their productivity and develop their business. 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. 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 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.

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, says Kitanha Toure, Regional Director for West Africa, Swedfund.

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.

— 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.

About COFINA
COFINA is a pan-African financial institution specializing in mesofinance, bridging the gap between microfinance and traditional banking to provide easier credit access for SMEs. Operating in eight African countries (Burkina Faso, Congo, Côte d’Ivoire, Gabon, Guinea, Mali, Senegal, Togo) and France (serving the diaspora), COFINA supports entrepreneurs and SMEs in West and Central Africa. It offers meso- and micro-credits, insurance, digital banking, and structured financing. With over 340,000 customers, 2,200 employees, and a balance sheet exceeding 440 billion CFA francs, 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.

About Global Gateway
Global Gateway is the EU’s investment strategy for partner countries, which aims to mobilise €300 billion in investments between 2021 and 2027 with a mix of grants, concessional loans and guarantees to de-risk private sector investments.