Burkina Faso is one of the poorest countries in West Africa and ranked 183rd (2013) out of 187 countries on the UN Human Development Index.
About 40% of the population lives under the poverty level. Many people are self-employed due to low formal employment. A large part of the population depends on subsistence farming and informal income activities.
SMEs are a game changer in this. They provide many jobs, and as they usually have a much greater scale they also have an impact on the whole community. However, SMEs also lack the ability to get credit or loans. In general, access to credit is considered difficult in Burkina Faso. Burkina ranks 130th out of 189 countries on the Doing Business list. It is known that only 2% of the bank loans are long term loans. And this percentage is even decreasing!
Sinergi Burkina S.A. will focus its investment services on the following sectors: food processing, agribusiness, biodiversity/transformation of local produce, small manufacturing, energy, health and education. Up till March 2014, Sinergi Burkina was able to generate 54 leads of which 77% is active in agribusiness, food processing and/or directly related to agricultural/food value chains.
Amount: $ 200,000 in equity (IRR 6.7%, 10 years)
Impact: Generate 700 new jobs, maintain 1100 jobs in 10 years, resulting in $8M in salaries, $4M in taxes and $11M in extra added value! Also substitute imports with $10M in exports
Goal and objectives | I&P (Investisseurs et Partenaires) will establish Sinergi Burkina S.A. with a start-up capital of 1.7 billion CFA, which equals approximately $ 3.2 million. From this capital it will make 50 investments in the period 2014-2023 of 90 million CFA ($ 170,000) on average. This will be done through equity and shareholder loans.