IFC and Baobab Group strengthen partnership

IFC today announced a new partnership with Groupe Baobab to improve the delivery of financial services to unserved and underserved entrepreneurs, including micro, small and women-owned businesses, in Burkina Faso, Côte d’Ivoire, Democratic Republic of Congo (DRC), Madagascar, Mali and Senegal.

Under the terms of this partnership, IFC has signed six loan agreements under a multi-currency facility for a total amount equivalent to $47.5 million in favour of Groupe Baobab. Implemented under the “Base of the Pyramid” platform, which aims to mitigate the economic consequences of the COVID-19 pandemic, this facility will help micro, small and women-owned businesses to access the financing they need to grow.

“This new partnership with IFC will reinforce our strategy of strengthening our leadership in larger markets such as Côte d’Ivoire and Senegal, and continuing our growth in today’s more fragile markets such as Burkina Faso, Mali and the Democratic Republic of Congo,” said Philip Sigwart, Managing Director of the Baobab Group.
This agreement marks a new stage in the long-standing relationship between IFC and the Baobab Group, which in 2005 was one of the first institutions to implement IFC’s Africa Microfinance Initiative. Since then, IFC – a founding shareholder of the Group – has supported it through loans and equity investments in its subsidiaries in Africa and China.

This new partnership aims to support the Baobab Group’s efforts to develop its financial operations in several sub-Saharan African countries.

“This new investment will enable IFC to reach multiple operators working in the field of financial inclusion across Africa in an effective and innovative way. It will also help expand access to finance for micro and small businesses and women in the wake of the COVID-19 pandemic and multiple climate shocks,” said Aliou Maiga, IFC Regional Director for Financial Institutions in Africa.

Micro and small enterprises are key drivers of private sector growth in sub-Saharan Africa. But they continue to be affected by rising inflation and supply chain disruptions, due in part to the aftermath of the pandemic and Russia’s invasion of Ukraine, jeopardising an inclusive and resilient recovery in the region.

IFC’s financing is supported by IDA’s Private Sector Window through its Blend Finance Facility (BFF) and Local Currency Facility (LCF).

About IFC
The International Finance Corporation (IFC), a member of the World Bank, is the leading private sector development institution in emerging markets. Active in more than 100 countries, IFC uses its capital, expertise and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, harnessing the power of the private sector to end extreme poverty and promote shared prosperity in economies struggling with the effects of multiple global crises. To find out more, visit  www.ifc.org.

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About Baobab
Baobab is a financial services group present in seven countries on the African continent and in one province of China.Through its subsidiaries, Baobab provides financial services to half a million micro and small businesses, in line with its ambition to improve access to finance for people who are currently not supported by traditional banks. Our comprehensive product range includes micro-loans, savings solutions, transaction and day-to-day banking services, as well as innovative banking products such as mobile payments, digital nano-loans and prepaid solar solutions. Our 4,000 employees are committed to making financial services more accessible, inclusive and transparent.To find out more, visit www.baobab.com.

About the IDA Private Sector Window
The International Development Association (IDA) Private Sector Window was launched in 2017 to catalyse private sector investment in the poorest and most fragile countries.Recognising the key role of the private sector in achieving IDA’s objectives and the World Bank’s twin goals, the window provides a source of co-investment finance and guarantees to reduce the risk of private investments supported by IFC and the Multilateral Investment Guarantee Agency (“MIGA”). The IDA PSW is an option where no commercial solution is available and where other World Bank Group tools and approaches are insufficient.

For more information,
visit https://ida.banquemondiale.org/fr/financing/guichet-du-secteur-prive-pour-ida-18

IFC : Hawa S. DIOP
Tél. : +1 (202) 696 47 16 – E-mail : [email protected]

Baobab : Habibatou CISSE
Tél. : (+221) 77 679 94 39 – E-mail : [email protected]

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