Energy 4 Impact and Mutuelle d’Epargne et de Crédit de la Chambre de Commerce de Kaolack (MECCIAK) concluded an agreement for the establishment of a partnership to facilitate access to credit for PREMS (multi-sectoral energy projects). These PREMS are micro-enterprises that seek to acquire appropriate energy equipment.
These companies are involved in a variety of activities such as the processing and marketing of cashew nuts, fish products, cheese / yogurt with goat's milk and local cereals (corn, couscous, flours etc ...). This new agreement will help these companies acquire the clean energy equipment they need for their development and growth. All these activities will benefit from better access to solar energy through the acquisition of solar home systems.
Energy 4 Impact has been providing productive use of energy support to small non-energy companies to enhance demand stimulation of electricity in newly electrified villages, and/or to support businesses operating beyond the grid with acquiring stand-alone productive electrical appliances. Productive end use is also key to the community as electrified businesses can enhance the local skills set and create growth, which ultimately creates jobs and increased income in the rural communities they operate in.
Access to finance is one of the main challenges that small informal sector enterprises face and that hinders their growth potential. The objective of this agreement will be to meet the financing needs of PREMS and to support the development of their activities. The agreement will support any activity that enables the supported enterprise to improve its socio-economic performance through appropriate energy equipment.
Louis Seck Country Manager Energy 4 Impact Senegal explained:
The guarantee fund provided by Energy 4 Impact will be used exclusively for loans granted by MEC-CCIAK. It will mitigate the risks from the microfinance institutions and reduce the interest rate applied on PREMS loans.