(Ecofin Agency) - Kafo Jiginew, a Malian microfinance institution has just received a long-term loan of €10 million (FCF6.5 billion) from the European Investment Bank (EIB).

“The contract will support the financing of economically profitable investments and those that create added value and jobs in sectors that struggle to obtain bank credit in rural areas. These are essentially micro, small and medium-sized enterprises in semi-urban and urban areas and young women,” said David Dao, Managing Director of the credit institution founded in 1987.

Kafo Jiginew plans to grant 60,000 microcredits to small farmers. This new funding is the second granted by the European Bank to Kafo Jiginew, after the one in 2001, which enabled the Malian institution to strengthen its foundations. Its equity capital has risen to CFA12.5 billion, while the savings of its 420,000 members are now estimated at more than CFA37 billion.