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Accueil du site → Projets de développement → Projets 2011 → St. Louis Finances S.A. : creation of a rural based microfinance institution

2011

St. Louis Finances S.A. : creation of a rural based microfinance institution

Senegal

Titre : St. Louis Finances S.A. : creation of a rural based microfinance institution

Pays : Senegal
Localisation : St. Louis Finances will be located in the region of St. Louis which lies approximately 270 km north of the countrys capital city Dakar. The Project will open up to 8 branches in a region covering St. Louis, Dagana and Podor, which are populated by rural communities and smaller towns.

Actual Start Date : 2011-03-17

Identifiant IATI : XM-DAC-903-SPI-27102

Présentation
The proposed project involves the creation of a rural based microfinance institution, St. Louis Finances S.A., (the “Company”) with headquarters located in the regional capital of northern Senegal, St. Louis. The Company will be the first commercially orientated microfinance institution in Senegal to focus on providing financial services to rural communities. The relatively large number of microfinance institutions operating in Senegal (approx. 800) are based on the cooperative model and serve mainly an urban and semi urban clientele ; only 8% of the rural population has access to finance. The Company will establish 8 branches and projects to service up to 30,000 clients by year 5 (“Project”).

Objectifs
As microfinance has been shown to play a major positive role in reducing poverty and unemployment in developing countries, the development impact of the project is expected to be very high. St. Louis Finances will be the first commercially run institution in Senegal to focus on providing microfinance services to the rural population. The regions economy is characterized by cross border trading between Senegal and Mauretania. Small to medium scale farming (cultivation of rice and vegetables) is a second major activity in the region bordering the Senegal River. Both small scale traders and farmers are currently dependent on refinancing through the informal economy at prohibitive rates. This in turn lowers productivity of the farmers as necessary investments in infrastructure are either deferred or canceled due to lack of financing. The Project will also benefit small scale enterprises located in the rural towns and provide them with refinancing alternatives at more reasonable rates.

International Finance Corporation

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Page publiée le 5 août 2022