Senegal lowers interest rates for private sector and diaspora support loans

Alioune Dione, the Minister of Microfinance and Social and Solidarity Economy, visited Tambacounda and Kédougou to defend a reduction in interest rates for the Platform for Support to the Private Sector and Diaspora Valorization (PLASEPRI).

During his tour on November 4 and 5, the minister explained that the interest rate for beneficiaries dropped from 13 to 8 percent.

He also noted that the cost at which the platform provides resources to microfinance institutions fell from 3 to 1 percent following his request in 2024. In Tambacounda, the ministry mobilized over 450 million CFA francs to support banana producers. These funds helped 16 promoters and groups of 1,925 members purchase three cold rooms, two refrigerated trucks, and ten water pumps. The project also involved rehabilitating eight irrigation networks and restoring plantations damaged by the Gambia River floods in 2024.

Dione instructed his staff to restart a unit that transforms bananas into products like couscous and vinegar. In Kédougou, the minister oversaw the refinancing of nearly 624 million CFA francs through three operations involving various promoter groups. These funds supported local activities and helped revive a struggling mutual fund. The mission also included technical training for 175 participants across both regions on topics like cash flow and debt management.

Dione linked these financial improvements to social outcomes such as keeping girls in school and reducing irregular migration.