Dakar, 25 September, 2014 -- IFC,
a member of the World Bank Group, and the government of Senegal, today
announced a program that will help provide access to credit for the agricultural
sector and ease the commercialization of agricultural products, contributing
to a reduction in extreme poverty among some of the country’s most economically
The program will support warehouse receipt
financing, which provides loans secured by goods stored in a warehouse.
The warehouse manager issues to farmers, processors, or traders a receipt
for the merchandise, which is used to guarantee loans from a banking institution.
. Over a period of three years, the project
will set up the legal and regulatory framework to introduce and scale-up
warehouse financing. It will train and raise awareness among market players
along the agricultural value chain and the financial sector to put the
system into operation, while developing a viable agricultural warehousing
“Agribusiness is a key sector for development
in Africa, with low barriers to entry that attracts a diverse array of
actors participating across the value chain,” said Saran Kebet-Koulibaly,
IFC Director for West and Central Africa. “This SRE project empowers Senegalese
farmers to engage meaningfully in the banking system, using their unsold
produce as collateral.
The project will be piloted in Senegal’s
rice sector. Rice has a socio-economic importance for the country, and
enjoys production conditions that guarantee a constant supply. The sector
has also been fortified by numerous government structural interventions,
working with development partners. The Government of Japan made a substantial
financial contribution to the project.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. Working with private enterprises in about 100 countries, we use
our capital, expertise, and influence to help eliminate extreme poverty
and boost shared prosperity. In FY14, we provided more than $22 billion
in financing to improve lives in developing countries and tackle the most
urgent challenges of development. For more information, visit www.ifc.org.