49038 - PAMECAS Investment

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Summary of Investment Information

Project Number

49038

Company Name

UNION DES MUTUELLES DU PARTENARIAT POUR LA MOBILISATION DE L'EPARGNE ET DU CREDIT AU SENEGAL

Date SPI Disclosed

Jul 9, 2025

Country

Senegal

Region

Africa

Projected Board Date

Aug 14, 2025

Environmental Category

FI-2 - Limited

Status

Pending Signing

Last Updated Date

Dec 24, 2025

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Dec 23, 2025

Sector

Commercial Banking - Microfinance

Additional Project Attributes

Blended Finance

Project Description

The proposed Project aims to support a Senegalese microfinance institution, Union des Mutuelles du Partenariat pour la Mobilisation de l’Épargne et du Crédit Au Sénégal (PAMECAS or the MFI), with an agricultural risk sharing facility (RSF) of up to US$7 million equivalent whereby IFC will guarantee up to 70 percent of an up to US$10 million equivalent portfolio of eligible loans from smallholder farmers, cooperatives and agri micro, small and medium-sized enterprises (MSMEs). The investment will be tranched with the first tranche covering a c.US$1 million portfolio, with up to US$0.7m loss coverage.

Associated Advisory Engagement

The Project is expected to be complemented by an Advisory Service (“AS”) focused on agriculture, including supporting PAMECAS on an institutional development plan to strengthen its internal processes and ability to expand lending in the agri-sector.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	7.06
Loan
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Guarantee	Loans to Microfinance

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The most significant expected project-level outcome is an increased access to finance for agri-MSMEs, including agri-WMSMEs (Women-owned MSMEs). Agricultural finance remains severely constrained in Senegal. Most formal financial institutions view the sector as high-risk due to challenges such as income variability, poor collateral frameworks, weather-related risks, and limited availability of financial data. These constraints are especially pronounced among female entrepreneurs, who have more limited access to bank financing than their male counterparts. Beyond the project-level outcomes, IFC anticipates that this Project will promote greater market resilience of Senegal’s agricultural value chain via the demonstration and replication channels, serving as proof of the commercial viability of lending to the agricultural sector.

IFC’s primary financial additionality is providing a critical tool to mitigate the challenges constraining agri-lending expansion, by offering an up to 70 percent local currency denominated guarantee on eligible agri-loans, a level of credit protection that is currently unavailable from commercial providers. The RSF will enable PAMECAS to provide financing to agri-MSMEs thanks to its structure with repayment profiles tailored to agricultural cycles. Through planned advisory services, IFC will help PAMECAS build the institutional and technical capabilities necessary to support its agri-lending expansion. IFC will also support standard setting, including helping PAMECAS to develop IFC’s E&S Management System (“ESMS”) procedures, through comprehensive guidance and training provided by IFC’s E&S specialist.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Access to Finance: Outstanding Microfinance Portfolio (#)	Outstanding Portfolio (#) [Actual]		Not Available	Not Available	Not Available
Access to Finance: Outstanding Microfinance Portfolio ($)	Outstanding Portfolio ($) [Actual]		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The project consists of a Risk Sharing Facility (RSF) to support PAMECAS expand its lending operations to smallholder farmers, cooperatives and micro, small and medium-sized Enterprises (MSMEs) within the agriculture sector in Senegal. The risks related to the portfolio of loans to smallholder farmers, cooperatives and MSMEs in the agricultural sector are considered medium. The E&S risks and impacts associated with the supported SME farmers, typically include biodiversity, occupational health and safety, pollution prevention, waste management, labor and working conditions issues, among others and considered limited and readily addressed through established mitigation measures. Therefore, the Project has been categorized as FI-2 in accordance with IFC’s Sustainability Policy.
For this project, PAMECAS will be required to have the capacity and a system in place to identify and manage the potential environmental and social risks associated with financing smallholder farmers, cooperatives and MSMEs in the agricultural sector. As such it will need to screen the eligible clients against the IFC Exclusion List; Senegal E&S laws and regulations; IFC Performance Standard (PS) 2 on Labor and Working Conditions; and PS 6 on Biodiversity Conservation and Sustainable Management of Living Natural Resources, as they relate to the supported asset class. The Project will not support coal-related activities, forestry, mining, and / or higher risk business activities that may include: (i) involuntary resettlement; (ii) risk of adverse impacts on indigenous peoples; (iii) significant risks to or impacts on the environment, community, health and safety, biodiversity or cultural heritage; (iv) retrenchment; or (v) significant occupational health and safety risks (e.g., risk of serious injury or fatality to workers). PAMECAS will also be required to meet Life & Fire safety requirements and the requirements of IFC’s PS 2. PAMECAS’s human resources policies and procedures are partially aligned with Performance Standard 2 on Labor and Working Conditions. However, the HR procedure is not easily accessible to employees, it does not include a procedure for handling cases of sexual harassment, does not have an employee grievance mechanism, nor a life and fire safety procedure.

PAMECAS has an environmental and social performance management policy that requires its clients to integrate environmental protection into their activities. The policy includes initiatives to raise awareness among clients and support them in integrating environmental considerations into their socioeconomic activities. Green finance products are being developed, particularly in the areas of energy, agricultural inputs, and equipment. PAMECAS' exclusion list is aligned with IFC’s exclusion list. However, PAMECAS does not have tools to screen clients in the agricultural sector’s activities against E&S regulations, labor and working conditions and biodiversity.
As part of this project, PAMECAS will be required to: 1) Designate an E&S Officer; 2) Develop an Environmental and Social Management System; 3) Provide E&S risk management training to its staff involved in the loan procedure; 4) Provide evidence of ESMS Implementation; 5) Improve its labor and working conditions.

S.no	Title	Anticipated Completion Date
1	Designate an E&S Officer	09/01/2025
2	Develop an Environmental and Social Management System (ESMS)	09/30/2025
3	E&S risk management training	09/30/2025
4	Evidence of ESMS Implementation	12/31/2025
5	Life and Fire Safety Procedure	03/31/2026

Contacts

For Inquiries About the Project, Contact

Union des mutuelles du partenariat pour la mobilisation de l'Epargne et du crédit au Sénégal
Ababacar Toure
Deputy CEO
+221774500474
atoure@pamecas.sn
UM PAMECAS, Sicap Baobab, N°565, BP:15354 Dakar Fann
https://pamecas.sn

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

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