ACEP BURKINA SA
Who is our client
Alliance de Credit et d'Epargne pour la Production (“ACEP”) Burkina Faso (“BF”) is a young microfinance institution providing financial products and services customised for mainly micro-entrepreneurs and SMEs whose needs are not covered by commercial banks given their informal nature.
The EUR 3 mln loan facility to ACEP BF will support on-lending to MSMEs in one of the Least Developed Countries, hence aligning with FMO’s strategic goal of Reducing Inequalities for the entire amount of the facility.
Why we fund this project
The transaction is a new client for FMO and will also be the first FI-AF loan in Burkina Faso, it fits with FI-AF's strategy to reinforce its presence in francophone Africa. In Burkina Faso today, one of the poorest countries in the world (HDI ranks 183th out of 188), roughly 45 persons out of 100 live below the poverty line. Hundred (100) per cent of ACEP Burkina Faso’s portfolio is dedicated to MSME funding, our loan will thereby drive financial inclusion, a critical factor in reducing poverty and achieving inclusive economic growth. On top of that, ACEP Burkina Faso belongs to the newly founded ACEP Group, a small French microfinance network which currently has operations in 5 countries and is looking to carefully expand its network further. FMO is willing to build a long-term relationship with the Group as a whole.
Environmental and social rationale
ACEP BF is classified as Cat. C. Deal team has identified no high-risk exposures in the loan portfolio of the client. ACEP BF is a Smart Campaign endorser and regularly performs the SPI4-Cerise audit.
- Burkina Faso
- Financial Institutions
- Signing date
- Total FMO financing
- EUR 3.00 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)