The Management Unit of the project to promote access to financing, entrepreneurship and employment in Mali (Pafeem) organized from 28 to 29 March 2022 a workshop to present its partial portfolio guarantee mechanism (Gpp) with a view to its operationalization, the opening ceremony of which was chaired by the coordinator of Pafeem, Ms. Touré Fatoumata Coulibaly, in the presence of the general manager Fgsp SA, Moustapha Adrien Sarr.
According to a press release, this two-day workshop, which involved Decentralized Financial Systems (Sfd) and banks, made it possible to present the Gpp, the selection process for beneficiary Financial Institutions (FIs), the selection criteria including the provisional timetable for the call for expressions of interest with a view to operationalizing the GPP. It also made it possible to collect any observations and proposals from financial institutions for better management of the concerns raised.
“The Partial Portfolio Guarantee (PPG) mechanism is a set of appropriate risk-sharing instruments with the aim of incentivizing banks and Decentralized Financial Systems (Sfds) to lend to micro, small and medium-sized enterprises (MSMEs) in order to promote their access to credit while limiting the risk of non-repayment, through three windows: the ordinary MSME window, the special MSME window and the Covid-19 window”, specifies the same source.
As such, Pafeem will provide the Private Sector Guarantee Fund (Fgsp SA) with 14 million US dollars (about 7.7 billion CFA francs) to support the issuance of partial loan portfolio guarantees to financial institutions. (Ifp) to guarantee a loan or line of credit to 1,000 micro, small and medium-sized enterprises.
During the opening ceremony of the workshop, the Pafeem coordinator welcomed the choice of Fgsp SA to manage the Gpp fund. Mrs. Touré Fatoumata Coulibaly assured the availability of the project management unit to support the Fgsp SA in the implementation of the Gpp guarantee mechanism; This with a view to achieving the overall objectives of improving access to financing for MSMEs and strengthening the financial, technical and operational capacities of the Fgsp SA, a guarantee of its sustainability.
Mr. Moustapha Adrien Sarr specified that the Gpp has two essential advantages; namely the development of the portfolio of companies in complete safety and the reduction of file processing times.
Pafeem is an initiative of the Government of Mali and the World Bank which aims to support the government’s efforts to meet the challenges of financial inclusion, financing of micro, small and medium-sized enterprises (MSMEs) and the creation of income-generating activities, particularly for the benefit of young people and women.
Adou FAYE