Improve Food Security and Job Creation
The main beneficiaries of this project will be importers of food crops and exporters of cash crops, who will be offered affordable finance as an alternative to expensive informal loans from middlemen. By financing more working capital to farmers, suppliers, processors, traders and others along supply chains, the project will positively impact food security, employment, and the livelihoods of many small farmers.
Other Development Impacts
The project will help to reduce post-harvest losses by improving storage conditions and stakeholder accountability. It will allow commodities owners more freedom in timing the sale of their products, thus helping reduce income instability due to commodity price volatility – a big concern in markets such as Senegal where agricultural infrastructure is limited. The initiative will support capacity-building of commodity exchanges and help to lower transaction costs in the markets by guaranteeing quantity and quality.
By providing a first-loss guarantee, the project will help overcome perceived or real risks that currently limit access to finance to Senegal’s agricultural sector. In an advisory role, IFC will contribute its financial structuring expertise to BICIS, and will require BICIS to inspect warehouses to ensure borrowers are in compliance with E&S standards and to develop and implement appropriate E&S procedures.