Oikocredit provides €5m loan to CMS to strengthen its financial inclusion portfolio in Senegal
Social impact investor Oikocredit provided a loan of €5 million to Union des Caisses de Credit Mutuel du Sénégal (CMS), a microfinance institution in Senegal with presence in almost every region of the country.
Oikocredit's loan will expand the CMS financial inclusion portfolio across its vast branch network, located mainly in the rural and peri-urban areas of Senegal. The loan will help CMS reinforce its market leadership position, having emerged from the Covid-19 crisis in a stronger position than most competitors, increasing its women and youth outreach while building new development partnerships for its 1.3 million customers and members.
Amadou Jean-Jacques Diop, Managing Director of CMS said, “Through this loan, CMS is renewing its successful relationship with Oikocredit and plans to consolidate this partnership as part of its development plan. The shared interest in financial inclusion and sustainable improvement of the living conditions of low-income people makes it easier and more attractive for CMS and Oikocredit to work together. CMS aims to strengthen its regional leadership in financial inclusion and looks forward to having Oikocredit as a partner to support us in this plan.”
Yves Komaclo, Oikocredit's Investment Manager for West Africa said, “We are delighted to support CMS in Senegal for the coming years. We are keen to renew our partnership with this high outreach union of credit and savings cooperatives, which is uniquely positioned to support our regional financial inclusion strategy. We are also pleased to be the first international lender to return to CMS since the post-Covid economic stabilisation. We look forward to joint work supporting local communities while creating a higher social impact in all regions of Senegal.”
Oikocredit has supported CMS since 2007. With a €225 million outstanding portfolio at the end of 2020, CSM is one of Senegal's most important microfinance institutions.