49102 - Baobab RSFs

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Summary of Investment Information

Project Number

49102

Company Name

BAOBAB SAS

Date SPI Disclosed

Nov 17, 2025

Country

Africa Region

Region

Africa

Projected Board Date

Dec 17, 2025

Environmental Category

FI-2 - Limited

Status

Pending Approval

Last Updated Date

Mar 13, 2026

Department

CF3WA - Regional Industry - FIG Africa/FIG West Africa

Industry

Financial Markets

Sector

Microfinance and Small Business - Non Commercial Banking

Additional Project Attributes

Blended Finance

Project Description

The proposed project consists of two multi-country unfunded Risk Sharing Facilities (RSFs) totalling up to $120 million in IFC's Maximum Risk Amount to be allocated across six Participating Affiliates (PAs) of Baobab Group (Baobab or the Group), namely Baobab Burkina Faso, Baobab Cote d’Ivoire, Baobab DRC, Baobab Madagascar, Baobab Mali, and Baobab Senegal, with Burkina Faso, the Democratic Republic of Congo (DRC), Madagascar and Mali classified as IDA FCS countries (the Project).

These RSFs represent the first regional facilities of this kind for microfinance institutions and will be structured as follows:

-An Agri RSF of up to $70 million (in local currency equivalent), through which IFC will guarantee up to 70% of a consolidated portfolio of loans to smallholder farmers, cooperatives, agri-SMEs, and agri-enablers, with total exposure up to $100 million.

-An SME RSF of up to $50 million (in local currency equivalent), where IFC will guarantee 50% of an aggregated portfolio of MSME loans, with a total exposure of up to $100 million. The SME RSF is processed under IFC’s Small Loans Guarantee Program (“SLGP”), a programmatic approach to de-risk and scale-up financing for MSMEs in eligible countries, such as Burkina Faso, Côte d’Ivoire, DRC, Mali, and Senegal.

Associated Advisory Engagement

The Project is expected to be complemented by an Advisory Service (AS) focusing on agriculture, aligned with the programmatic approach under the upcoming Africa Agriculture Accelerator Program (AAAP) and gender finance.

Sponsor / Cost / Location

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
Guarantee	Loans to Woman-Owned SMEs

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

Development Impact

For the SMEs RSF: The most significant expected Project-level outcome will be increased access to credit for SMEs. Through the project, IFC anticipates that the BAOBAB group will expand its SME portfolio by 2029, reflecting a strong compounded annual growth rate (CAGR) over the next five years, and additional SME loans. For the Agri-RSF: The most significant, expected Project-level outcome is an increased access to finance for SHFs and agri-SMEs, including to Women-owned SMEs (WSMEs). Beyond the Project, IFC anticipates that the Project has the potential to promote greater market resilience through demonstration of the commercial viability of lending to agri-MSMEs and promoting higher SME segments such as WSME and VSE/SE.

IFC’s additionality is financial, delivered through an innovative risk-sharing structure that is not available from commercial providers in the target markets. IFC will provide (i) SME RSFs covering up to 50% of principal losses on eligible MSME loans, and (ii) Agri RSFs offering up to 70% local-currency credit protection on agri-MSME and smallholder farmer loans—an exceptional level of risk mitigation in markets where agricultural credit remains severely constrained. These facilities will enable Baobab subsidiaries to expand lending to underserved MSMEs and agri clients while preserving capital adequacy in IDA/FCS environments characterized by high perceived and actual credit risk and limited long-term risk-sharing instruments.

Indicator	Metrics	Comments
MSME share of total loan portfolio	%

E&S Category Rationale / Risks and Mitigation

The project will support on-lending to SME and Agriculture clients across six African subsidiaries of Baobab Group, namely Burkina Faso, Côte d'Ivoire, Democratic Republic of Congo, Madagascar, Mali and Senegal. The targeted SME portfolios are mainly exposed to sectors such as trade, services, construction, production and agriculture with overall medium environmental and social (E&S) risks. Therefore, the project has been categorized as FI-2 in accordance with IFC’s Sustainability Policy. The key E&S risks and impacts derive from the capacity of Baobab subsidiaries to identify and manage the potential environmental and social risks associated with its lending activities: labor and working conditions, Occupational Health and Safety, air emissions, waste management, production and handling of hazardous materials biodiversity, and any other relevant E&S risk.
For this project, Baobab subsidiaries 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 to SME and Agri clients. As such they will need to screen the eligible SME clients against the IFC Exclusion List and national E&S laws and regulations. In addition to these requirements, Agri clients will also be screened for child labor and biodiversity risks.

IFC’s investment will not be used to support any coal, forestry, and mining, and higher E&S risk 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). The project will only support Certified Sustainable Palm Oil (CSPO) produced under the standards set by the Roundtable on Sustainable Palm Oil (RSPO).

Baobab subsidiaries will also be required to meet Life & Fire safety requirements and the requirements of IFC’s Performance Standard 2 on Labor and Working conditions. Baobab subsidiaries’ HR policies and practices are generally in line with IFC's Performance Standards 2 on Labor and Working conditions. Except, All the subsidiaries, except Baobab Senegal will need to develop employee grievance mechanisms and fire safety procedures.

Baobab Group has developed a Code of Ethics and a Manual of environmental and social classification of loans, both applicable to all Baobab subsidiaries (Baobab affiliates). These are an encompassing set of standards to help financial service providers (FSP) achieve their social mission, including environmentally responsible lending. In addition to the policy, Baobab Group developed an ESMS manual that specifies applicable requirements (list of excluded activities partially aligned with the IFC Exclusion List and applicable national legislation), defines roles and responsibilities, and provides guidance for E&S categorization based on the sector and activity financed.

The ESMS implementation requires enhancement to ensure effective E&S risk management commensurate with the E&S risks of the agriculture sector.
Baobab Group and subsidiaries are need to improve their E&S capacity. The E&S function is not part of the credit review process. The Group is not actively providing or coordinating E&S training to Subsidiaries.

S.no	Title	Anticipated Completion Date
1	Update ESMS	01/31/2026
2	Formalize procedures	01/31/2026
3	Staff Training	01/31/2026
4	Enhance HR policies and procedures in line with IFC Performance Standards 2	07/31/2026
5	Manage Life and Fire Safety Requirements	07/31/2026
6	Evidence of ESMS implementation	10/31/2026

Contacts

For Inquiries About the Project, Contact

Baobab Group
Christina REIFSCHNEIDER
Group CFO
+33 (0)1 85 73 19 00
creifschneider@baobabgroup.com
1 rue de Gramont, 75002 Paris, France
www.baobabgroup.com

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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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Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Baobab PAs (project number)	SME RSFs through BAOBAB SLGP (52690)
Burkina Faso (52646)	$10 million
Côte d’Ivoire (52644)	$10 million
DRC (52642)	$10 million
Mali (52650)	$10 million
Senegal (52648)	$10 million

Baobab Pas (project number)	Agri-RSFs
Burkina Faso (52647)	$7 million
Côte d’Ivoire (52645)	$35 million
DRC (52643)	$3.5 million
Madagascar (52652)	$7 million
Mali (52651)	$3.5 million
Senegal (52649)	$14 million

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