Senegal government lowers interest rates to support local entrepreneurs

Dr Alioune Dione, the Minister of Microfinance and Social and Solidarity Economy, distributed funding and training certificates to local business owners in Kédougou, Senegal.

The minister announced that three refinancing operations provided to the Mutuelle d’Épargne et de Crédit MEC Dynamics gathered 623.8 million FCFA to support 67 local business owners. These funds aim to help entrepreneurs expand their productive activities, increase their incomes, and discourage irregular migration. The investment also helped restart MEC Dynamics after it faced financial difficulties.

To ensure the long term success of these businesses, the PLASEPRI program provided 49 beneficiaries with financial education training. This training covered topics such as cash flow management, expense planning, and debt management. Additionally, the ministry reduced interest rates for the program, lowering the exit rate from 3% to 1% and the borrower rate from 13% to 8%. The minister noted that the program started through a partnership with Italy to support the Senegal 2050 National Transformation Agenda.