Sinapi Aba
Period
2022
Country
Ghana
Sector
Agriculture
Financial facility
AgriFI
EDFI AgriFI invests the equivalent in GHS of € 2.5 million in Sinapi Aba, a microfinance institution in Ghana, to increase opportunities for enterprise development and income generation for the population at the base of the pyramid.
Project overview
Sinapi Aba Savings & Loans Ltd (SASL) is a rural microfinance institution active for more than 20 years. SASL provides loans and savings products to individuals and MSMEs with a strong focus on financial inclusion in rural areas and women empowerment: 70%+ of its clients residing in rural areas and ~80% are women. The company is serving more than 150,000 borrowers through a network of 44 branches. It has a significant agriculture portfolio, serving around 19,000 farmers.
Funding objective
Funding objective EDFI AgriFI intervenes with a triple objective:
- Incentivise the company to grow its agricultural portfolio including the Northern regions;
- reinforce its capitalisation with a long-term subordinated debt; and
- unlock additional long-term debt from international investors. SASL aims to impact the livelihood of 25,000 farmers by 2025.
Investment rationale
EDFI AgriFI financing will contribute to:
- women empowerment as it is mostly active in rural areas with 80% of clients as women.
- catalyse private investments in line with the Ghana Country Window mandate aiming to significantly impact
Northern regions.
Key Indicators
Financial Instrument
Subordinated debt
Amount
€ 2.5 million
Year
2022
Impact
25,000 farmers by 2025
