Compagnie Financière Africaine (COFINA)
Introduction
Compagnie Financière Africaine (COFINA) is a leading mesofinance institution that provides loans to businesses in West and Central Africa to enable them to develop and grow their business.
Swedfund's investment will support entrepreneurship in West Africa, empowering underserved groups, including women entrepreneurs. The investment is expected to contribute to job creation and business growth and improved livelihoods.
Swedfund’s loan will target the underserved segments of MSMEs, women entrepreneurs and agribusinesses in Côte d’Ivoire and Senegal.
Swedfund’s loan is supported up to 50 percent through a guarantee by the European Union under EFSD+ as a contribution to the Global Gateway investment priority of Financial Inclusion.
Read more in our press release: Closing MSME finance gap in Côte d’Ivoire and Senegal
Related links:
Swedfund Policy For Sustainable Development
Swedfund E&S Categorisation
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Reduced Inequalities
Reduce inequality within and among countries.
Gender Equality
Achieve gender equality and empower all women and girls.
Value creation
Impact
Swedfund’s investment enables small and medium-sized enterprises to access long-term finance, contributing to economic growth, jobs and other income-generating opportunities locally. Furthermore, the investment contributes to the economic empowerment of women by promoting female leadership, increasing the number of jobs for women, and offering products and services that favour women.
Additionality
Swedfund's investment is financially additional as it is made in a high-risk context where poverty rates are high. The investment is value additional through a strong focus on active value creation during the investment phase, prioritising sustainability, environmental and social issues.
ESG Summary
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG risk
E&S risk categorisation is Medium Risk (FI-B) based on the FI’s investment strategy, exposure to E&S/impact risks. Identified risks are related to business integrity, customer protection principles. Contextual risks include those related to agriculture and manufacturing sectors to which the FI has exposure.
ESG mitigation measures
Supporting COFINA to, among other things, develop an environmental and social management system (ESMS) that has the capacity to manage and mitigate environmental and social risks linked to the sector. Swedfund is also supporting COFINA on occupational health and safety issues and good practices for customer protection.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1-4 are applicable to the financial institution (FI) and its subsidiaries. IFC PS 1-8 may be applicable for the clients of the institution.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.