Senegal: la Banque Agricole and EIB sign agreement to back food sovereignty with EU support

La Banque Agricole (LBA) du Sénégal and the European Investment Bank (EIB) today signed a €30 million loan to strengthen the sustainable development of agricultural value chains in Senegal with EU support.

In concrete terms, this partnership will back production investments for over 3 000 people working in Senegal’s agricultural sector, increasing local production capacity while strengthening the sustainability of agricultural value chains, particularly those for cereals, horticulture, peanuts and cashews.

It will put LBA in a position to back the agricultural sector to boost the country’s food sovereignty, further develop its climate action and green investment, and to open up new opportunities to export to the European Union. LBA has established itself as Senegal’s climate bank, committing under this partnership to direct at least 30% of the EIB loan to green and climate action and environmental sustainability. The aim is to support Senegal’s efforts to limit the impact of climate change, manage its resources sustainably, and promote resilience and adaptation in the sectors and communities that are most vulnerable to the effects of climate change.

The financial benefits of this partnership will be passed on to LBA clients and borrowers, who will receive longer-term financing for areas including irrigation, mechanisation and raw material storage, together with multiannual seasonal loans covering the variable nature of agricultural income depending on the rainy season.

Promoting gender equality and women’s empowerment is also a key objective of this financial partnership. LBA has committed to directing at least 30% of the EIB loan to women, supporting their participation in the economy and reducing gender inequality in terms of economic opportunities, thereby fostering fairer and more inclusive economic growth.

LBA Managing Director Fatma Fall Dieye said: “The implementation of this important partnership will enable LBA to significantly expand its action in two areas. In the agricultural sector, the goal is to meet the investment needs of agricultural value chain participants, enabling agricultural production in the targeted sectors to recover, covering agricultural product storage, processing and packaging needs. In the climate action domain, the bank plans to make a major contribution to the resilience of the Senegalese economy to climate shocks by providing sustainable financing taking environmental and social considerations into account and promoting the development of green and low-carbon investment.”

“This new partnership between the EIB and La Banque Agricole – set up with EU support under Team Europe – will back LBA’s strongly engaged action to foster sustainable agriculture. It aims to develop innovate products and services meeting the needs of farmers and rural communities, supporting climate change adaptation. This financial support reaffirms the EIB's commitment to back the actions of its African partners to support local people – particularly women – while bolstering the development of improved production and sustainability in agricultural value chains,” said EIB Vice-President Ambroise Fayolle.

“As a strategic partner of Senegal, and against an unstable international backdrop, the European Union will maintain and expand its support for food sovereignty in the country, which is among the Senegalese government’s priorities,” added EU Ambassador to Senegal Jean-Marc Pisani. “If these goals are to be met, structural public sector investment must go hand in hand with private sector investment in agro-forestry and fishery value chains. Cooperatives, small and medium-sized enterprises (SMEs) and mid-caps must be able to access finance to foster a virtuous investment circle in line with the Global Gateway strategy aiming to support key, sustainable sectors that drive inclusive economic growth.”

Background information

About the European Investment Bank

The EIB is the lending institution of the European Union, owned by the Member States. It provides long-term financing for sound investment projects to achieve EU policy objectives.

The EIB has been a strong partner for African countries for 60 years. Through EIB Global, the Bank is strengthening its presence in Africa. Over the last five years, the EIB has invested €12 billion in Africa – 25% of which went to West Africa – with the goal of financing projects in key areas for African countries such as clean energy, water and sanitation, sustainable transport, affordable housing, healthcare and support for the private sector and project promoters.

EIB Global is the EIB Group's specialised arm devoted to increasing the impact of international partnerships and development finance. It is designed to foster strong, focused partnerships within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.

About La Banque Agricole

Formerly known as Caisse Nationale de Crédit Agricole du Sénégal (CNCAS), La Banque Agricole is a key player in the Senegalese financial sector working mainly on agricultural support and development. Founded in 1984, the bank is tasked with providing financial solutions tailored to the needs of farmers, agro-industrial companies and rural communities. With a dense network of over 40 branches across the country, La Banque Agricole stands out for its commitment to financial inclusion and sustainable rural development.

It offers a wide range of financial products and services, including short-, medium- and long-term loans, savings and insurance, all designed specifically for the agricultural sector. In addition to banking services, La Banque Agricole plays a key role in providing technical assistance and skill building services to the sector. Its partnerships will national and international institutions enable it to contribute to the modernisation of agriculture in Senegal and improvements to the living conditions of rural people. La Banque Agricole is the first commercial bank in Senegal to receive approval for direct access to the Green Climate Fund, and is positioning itself as a vital pillar of economic and social development in the country by actively supporting sustainable agriculture and promoting the resilience of rural communities to economic and climate challenges.

About the European Union’s priorities in Senegal

The European Union’s priorities in Senegal are based on several strategic pillars, with the goal of supporting sustainable development and stability in the country. The European Union aims to contribute to stability, prosperity and well-being in Senegal. By making major green investments, the European Union is focusing its efforts on inclusive and sustainable economic development, while also strengthening key sectors like agriculture, energy, the pharmaceutical sector, urban mobility, the digital sector, and water and wastewater, as well as professional training, entrepreneurship and job creation, particularly for young people and women. It places special importance on promoting good governance, the rule of law and human rights. This support is in line with and implements the Global Gateway strategy launched in 2021 with the goal of forming sustainable and reliable connections to benefit people and planet. This EU strategy aims to develop smart, clean and safe links in the digital, energy and transport domains, and to strengthen health, education and research systems across the world.

With the new Neighbourhood, Development and International Cooperation Instrument, also known as Global Europe, Team Europe – the European Union, its Member States (including their implementing agencies and public development banks) and the EIB – are mobilising the private sector to promote local added value, sustainable growth and job creation. In identifying, co-financing and carrying out concrete projects, the private sector plays a key role in operationalising this strategy on the ground.