Senegal: new initiative aims to facilitate access to finance for multi-sectoral energy projects
Energy 4 Impact and Mutuelle d’Epargne et de Crédit de la Chambre de Commerce de Kaolack (MEC-CCIAK) have formed a partnership to facilitate access to credit for Senegalese multi-sectoral micro-enterprises, seeking to acquire productive powered equipment and tools.
These companies are involved in the processing of food and agricultural products, such as cashew nuts, fish, dairies, fruit and cereals. This new agreement will enable them to acquire the equipment they need to increase their productivity, as well as solar PV systems to power them.
Access to finance is one of the main challenges facing small informal sector enterprises, and that hinders their growth potential. This partnership aims to meet the financing needs of micro-enterprises and to support the development of their commercial activities through tailored business and technical mentorship.
Louis Seck, Energy 4 Impact Senegal Country Manager, explained:
Energy 4 Impact guarantees the loans provided by MEC-CCIAK to mitigate the risks of defaults, while MEC-CCIAK commits to reduce the interest rate applied on the loans. We also help businesses identify productive use appliance suppliers, provide advice on prices and power ratings, as well as customised business mentoring to the micro-entrepreneurs to ensure they make the most of their powered equipment and maximise their profit. Altogether these interventions are hoped to increase the uptake of powered tools and stimulate the demand for productive use of energy.
Energy 4 Impact has been providing productive use of energy support to small non-energy companies to stimulate demand for electricity in newly electrified villages, and to support businesses operating beyond the grid with acquiring stand-alone productive electrical appliances. Access to energy and powered equipment is key to the welfare of rural communities, as electrified businesses can enhance the local skill-set, generate employment opportunities and stimulate economic growth.