Established in 1999 in Dakar as a privately owned bank, EBS is part of one of the largest African financial services group, i.e. Ecobank Transnational Incorporated (ETI), covering 22 countries. EBS’ main shareholders are ETI, which holds 80.45% of the Bank’s shares and Axa Assurance which accounts for 8.66%.

EBS is the fifth private bank in terms of total assets in Senegal and accounts for 6% of the market share. The Bank provides corporate finance (wholesale), retail banking, trade finance, money market activities and mortgage lending. Its network consists of 27 branches at the end of the first quarter of 2008 while its staffing stood at 193 staff at end-December 2007.

The RSF will cover a portfolio of up to $4 million of new loans to women-owned MSMEs generated by Ecobank Senegal. IFC will provide a guarantee directly to Ecobank Senegal for the XOF equivalent of up to $2 million to cover 50% of all portfolio losses.

The loans will be made to women-owned MSMEs in Senegal.

The project is expected to have a high impact through a direct contribution to private sector development by:

- enabling women entrepreneurs to create jobs that are more likely to employ other women and contribute additional income to address household poverty reduction and pay schooling for children;
- improving and increasing access to finance for women owned businesses, an underserved sector in Senegal;
- the AS will assist women in developing a savings culture and provide training on business skills on how to access credit for those who want to borrow. A further and longer term benefit could be reduced costs for private sector as competition among banks intensifies.

Consistent with IFC’s objective of supporting sustainable private sector development, this RSF will also have a high development impact in line with the Government of Senegal (GOS)’s objective of accelerating poverty reduction by contributing to sustainable and equitable economic growth and it will:

- Create a demonstration effect within the banking sector concerning the sustainability and the profitability of lending to women-owned MSMEs; and
- Promote the competitiveness of selected industries, including enhancing linkages and know-how transfer between large businesses and women-owned MSMEs.

IFC is expected to play two important roles:

- as an advisor to the Bank on the program design including setting eligibility criteria for women-owned MSMEs;
- as an investor providing financial support to the Bank.

IFC brings knowledge of best practices in structuring commercial risk-sharing instruments and will also play a strong role in administering the RSF.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. IFC will analyze the FI portfolio, for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of: The IFC FI Exclusion List(s) and the applicable National Social and Environmental Laws and regulations. IFC will also review the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.

Based on the review, the project will be required to:

- Develop or upgrade an existing Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC
- Identify responsible, qualified persons to manage and implement the SEMS
- Commit to implement the SEMS, to ensure that its investments/activities are in compliance with the Applicable Performance Requirements
- Submit a periodic report to IFC as per a format to be provided by IFC.