(Ecofin Agency) - The private sector arm of the AFD group has extended a third loan to Microfinance Solidaire since 2016. This funding will support the lending activities of the French institution to microfinance organizations in Senegal, Sierra Leone, Togo, Guinea, and Liberia.

Proparco announced yesterday a new €2 million ($2.1 million) loan to Microfinance Solidaire (MFS). This funding will support lending activities in MFS subsidiaries across sub-Saharan Africa, Southeast Asia, and Haiti. It will be directed to microfinance institutions in Senegal, Sierra Leone, Togo, Guinea, Liberia, Myanmar, and Haiti.

"The goal is to help these microfinance institutions grow and become key players in their respective countries," said Entrepreneurs du Monde, the NGO that manages MFS. The loan will primarily back projects led by women entrepreneurs, who make up 88% of the financing recipients, and agricultural enterprises, which account for 37% of the loans. This is the third credit line of its kind, following earlier ones in 2016 and January 2021, each also valued at €2 million.

?@Proparco x Microfinance Solidaire, au service des #microentrepreneurs !

Pour soutenir l'action de Microfinance Solidaire en faveur des #IMF et des entreprises #sociales partenaires, Proparco vient de lui accorder un prêt de 2M€⤵️https://t.co/TsniglRiLl pic.twitter.com/Ivyf9jx3H5

— Proparco (@Proparco) October 15, 2024

Entrepreneurs du Monde is known for its focus on social microfinance, offering unsecured loans to people who are excluded from traditional financial systems. In addition to loans, the organization provides extra services to support its clients.

In Senegal, MFS has been active since 2017 through its subsidiary Fansoto, which offers both financial services (savings and microcredit) and non-financial services (training and business support) to entrepreneurs, 99% of whom are women. In Sierra Leone, MFS operates through its subsidiary Munafa, established in 2019. In Guinea and Togo, it has been present since 2016 through Wakili and since 2012 through its microcredit service Assilassimé.