March 08, 2021
The U.S. African Development Foundation (USADF) and the Government of Senegal Celebrate First Award Agreement Signed Under the Five-Year, $20 Million USADF-DER Co-Funding Partnership Supporting Youth and Women Entrepreneurship in Senegal
Dakar, Senegal – March 8, 2021 – The U.S. African Development Foundation (USADF) and Credit Mutual of Senegal (CMS) recently signed the first of several grant agreements under the USADF and Government of Senegal’s General Delegation for Rapid Entrepreneurship of Women and Youth (DER) five-year, $20 million co-funding partnership. USADF and the Government of Senegal are providing up to $10 million each over the five-year agreement to increase entrepreneurship opportunities for youth and women in Senegal.
The collaboration employs a blended finance structure that funds microfinance institutions like CMS to provide both low-interest loans and grants to support Senegalese entrepreneurs. The focus is on inclusive growth and community-driven economic development through investments in micro, small, and medium-sized enterprises (MSMEs); farmer cooperatives; and producer associations to make them attractive for funding from other investment entities and programs.
“This is the first of many grants under this partnership which will support approximately 30 projects and organizations through financial institutions such as CMS,” said C.D. Glin, USADF President and CEO. “The projects range from agriculture value chain support infrastructure, microfinance capacity building, and support to cooperatives, individual entrepreneurs, and MSMEs.”
The inaugural grant signing ceremony was held in Dakar, Senegal and attended by USADF President and CEO C.D. Glin (virtually), U.S. Ambassador to Senegal Tulinabo S. Mushingi, Senegalese Minister General Delegate Papa Amadou Sarr, and CMS Managing Director Amadou Jean-Jacques Diop.
“This signing agreement comes from an equal contribution between USADF and the Government of Senegal,” stated Minister General Delegate, Papa Amadou Sarr. “This is the first step to operationalizing this partnership through a blended finance model, and its success will promote financial inclusion for the most vulnerable throughout the country.”
Mr. Amadou Jean Jacques Diop, Managing Director of CMS, added, “USADF and DER can rely on CMS for the project’s implementation, loan recovery, and achieving expected results.”
In addition to capital assistance, recipient enterprises and entrepreneurs will receive technical assistance from USADF’s network of 100% African local partner organizations to help them develop, grow, and scale. Grants for non-productive capital expenditures, including staff, training, and capacity building, will help de-risk the loan portion of each investment, thus increasing recipients’ ability to successfully repay loans and build credit to qualify for follow-on commercial lending.
Ambassador Mushingi closed the event in stating, “This year, the United States and Senegal mark 60 years of diplomatic relations. Our partnership is founded on shared values, including democracy, joint prosperity, and mutual security. The partnership between USADF and DER is a great example of how we work together effectively. I am proud this grant will enable women- and youth-owned small businesses that have demonstrated progress but might be overlooked by commercial banks. It is my firm belief that there is no better way to create an ‘emerging Senegal’ than by investing in the country’s most important resource: its people.
P/CEO Glin, Ambassador Mushingi, and Minister General Delegate Sarr at the December 2019 USADF-DER MOU Signing Ceremony in Dakar
CMS Managing Director Diop signing the USADF award agreement in Dakar in March 2021
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About the United States African Development Foundation (USADF)
USADF is an independent U.S. government agency established by Congress to invest directly in African grassroots enterprises and social entrepreneurs. USADF's investments increase incomes, revenues, and jobs by promoting self-reliance and market-based solutions to poverty. USADF creates pathways to prosperity for marginalized populations and underserved communities in the Sahel, Great Lakes, and the Horn of Africa. To learn more, please visit www.usadf.gov.
About the General Delegation for Rapid Entrepreneurship of Women and Youth (DER)
DER is a government-sponsored fund launched by Senegalese President Macky Sall to promote entrepreneurship, targeting youth up to 40 years in age and women from 18 years in age.
About Credit Mutual of Senegal (CMS)
CMS' mission is to improve the standard of living and promote the well-being of populations of all socio-professional categories by offering a wide range of local financial services.