Senegal: Fongip signs a $25 million line of guarantee with the FSA

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The Guarantee Fund for Priority Investments (FONGIP) of Senegal signed, Thursday, January 27, an agreement for the granting of a guarantee line of 15 billion FCFA (about 25 million dollars) with the African Solidarity Fund ( FSA) based in Niger. The agreement initialed in Niamey is intended to strengthen Fongip’s actions towards Senegalese companies.

According to a press release from FONGIP published on Thursday, this line of guarantee will be executed as a co-guarantee (FONGIP/FSA) and as a sole guarantee of the FSA.

“By agreeing to allocate, initially, to FONGIP a portfolio guarantee line of fifteen billion CFA francs intended to support large companies and Senegalese SMEs/SMIs, the FSA intends to play its part in the revival of Senegalese economy,” said FONGIP’s general administrator, Thérèse Faye Diouf.

As such, the parties indicate, the FSA constitutes an innovative and appropriate response by making it possible to mitigate the risks linked to the granting of loans to SMEs/SMIs by financial institutions and to promote the reduction of the cost of credit.

Since its creation, FONGIP has granted a total amount of 37.5 billion CFA francs (62.4 million dollars) to banks, financial establishments and microfinance institutions in the form of guarantees and refinancing loans. These interventions made it possible to mobilize, from the financial sector, a volume of financing of 68.4 billion FCFA (113 million dollars) for a total cost of the projects of 92.2 billion CFA francs (153 million dollars). This has favored the creation of more than 92,000 jobs.

For the year 2022, FONGIP approved 5.4 billion FCFA (nearly 10 million dollars) of guarantee having made it possible to mobilize nearly 10 billion FCFA (16.5 million dollars) of bank credits for a cost projects of more than 12.5 billion FCFA (20.8 million dollars). This generated more than 6,800 direct and indirect jobs.

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