Source: Business post
Swedfund, Sweden’s development finance institution, has invested €20 million in Compagnie Financière Africaine (COFINA) to enhance financial access for Micro, Small, and Medium-sized Enterprises (MSMEs) in West and Central Africa. This investment, with a particular focus on supporting women entrepreneurs, aims to help businesses in Côte d’Ivoire and Senegal overcome growth barriers.
COFINA has established itself as a vital financial service provider for MSMEs that are often excluded from traditional banking systems. “This investment will drive entrepreneurship in West Africa, empowering underserved groups, especially women entrepreneurs,” stated Björn Areskog, Swedfund’s Senior Investment Manager.
The credit facility, with 50% of its funds guaranteed by the European Union’s EFSD+ initiative, aligns with the Global Gateway’s emphasis on financial inclusion. It will be distributed through COFINA subsidiaries such as FIN’Elle, which supports women-owned businesses, and COFINA Côte d’Ivoire and COFINA Senegal, which cater to the broader MSME sector.
Kitanha Toure, Swedfund’s Regional Director for West Africa, stressed the importance of development finance institutions (DFIs) in strengthening local capital markets by providing long-term capital where it is scarce. “We are dedicated to backing impactful companies across West Africa, a critical focus area for Swedfund as we expand our investments across the African continent,” she noted.
Serge Massamba, Groupe COFINA’s Director of Strategy, underscored the economic benefits of gender equality, describing it as a strategic advantage for African businesses. “Gender equality drives innovation, enhances performance, and promotes sustainability. By empowering women, businesses unlock significant growth opportunities and achieve lasting success,” he explained.
This partnership seeks to address the financial challenges faced by MSMEs in the region, fostering job creation, economic resilience, and improved livelihoods across West Africa.
