While economic and labor market recovery are AFD’s priorities under the current circumstances in Mali, the soundest microfinance institutions (MFIs) can play a role in revitalizing the economy. On this basis, the financing allocated to Mali’s mutual savings and loan association - Nyèsigiso - on 22 February 2013 is a first step in the implementation of a partnership between AFD and the mutual institution.
Strengthening the institution’s anti-money laundering system and financial governance
This support will finance the provision of international expertise with the aim of strengthening two areas in the institution: upgrade its procedures for anti-money laundering and combating the financing of terrorism (AML/CFT) and, secondly, define an action plan to improve financial governance in all the entities in the network (banks and apex bodies).
Photo JM. Crevier
The support mission started immediately on 26 February and a seminar to train the MFI’s senior executives was held during the week of 22 March. For Modibo Coulibaly, Director General of Nyèsigiso, this initial phase allowed him "to learn more about the AML/CFT concept and gave me confidence for the next phase. It is a real asset for the Nyèsigiso management team".
Supporting home loans for low-income families
This financing is the first stage in a broader partnership to help the Malian MFI develop new home loan products, in partnership with Développement International Desjardins (DID) and Canadian cooperation. This pilot project, which is designed to be replicated in other West African Economic and Monetary Union (WAEMU)* countries, will aim to improve housing for low or middle-income communities in Bamako, then subsequently in secondary cities.
Indeed, these communities face a specific housing problem: as there is no national policy to subsidize access to housing, improving their living conditions generally involves refurbishing or extending existing housing.
As the range of financing in this area remains limited, in Mali there is a sizeable market for financial products to improve housing for communities who traditionally use the services of microfinance institutions.
With 191,000 members and a loan portfolio worth EUR 16.8m at the end of 2012, Nyèsigiso is the second largest microfinance institution in the country in terms of size.
Photo A. Beauregard
A new partnership for the sector
AFD has been supporting the microfinance sector in Mali since the early 1990s. This pilot project for home loans is AFD’s first support for Nyèsigiso.
This financing confirms the effective resumption of cooperation on the part of AFD and its partners to support Mali’s microfinance sector.
Type of financing: Governance Capacity Building Facility (FRCG)
Financing amount: EUR 40,000 grant, i.e. FCFA 26,238,280
*Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Togo
S M. Modibo Coulibaly, Managing director of Nyèsigiso
Photo Aminata Niono for AFD