BMI YOUTH & GENDER LOAN FOR SMES AND MIDCAPS

Promoter – Financial Intermediary

BANQUE MAURITANIENNE DE L'INVESTISSEMENT

Location

• Mauritania

Description

The proposed operation is an up to EUR 20,000,000 Multiple Beneficiary Intermediated Loan to Banque Mauritanienne de l'Investissement (BMI), to support eligible small and medium-sized enterprises (SMEs) and MidCaps in Mauritania, with a focus on youth employment and gender equality and women's economic empowerment, in line with the 2X Challenge Criteria.

Additionality and Impact

Access to finance for corporates in Mauritania is limited and the labour market participation rate is lower than in the region, with a large percentage of young Mauritanians unemployed and untrained, and a declining financial inclusion of women. The proposed Multiple Beneficiary Intermediated Loan (MBIL) aims at on-lending to private businesses, notably SMEs. It will contribute to the private sector inclusive growth and decent job creation in Mauritania and will target specifically decent job creation for youth and youth entrepreneurship and businesses owned, run, employing or primarily serving women. The project is aligned with the EU's external action, the Neighbourhood, Development and International Cooperation Instrument (NDICI) and the Multiannual Indicative Program (MIP) for Mauritania for years 2021-2027 which promotes strong, sustainable and inclusive growth, and will contribute to the achievement of several Sustainable Development Goals.

The availability of longer-term funds will enable BMI to diversify its funding sources and extend the tenors of its loan. A portfolio guarantee will be deployed in parallel to enable BMI to improve its lending terms. In addition, it is expected that technical assistance will be provided to BMI to set up reporting practices based on the recommendations of the Taskforce on Climate-related Financial Disclosures. 

Objectives

The EIB loan will be entirely used to finance eligible investments made by SMEs and Midcaps in sectors such as transport, agriculture value-chain, manufacturing, tourism and services, thus contributing to reduce youth unemployment and improve gender equality in financial inclusion. More specifically, at least 30% of the EIB financing will target businesses led and/or founded by a young entrepreneur, employing at least 40% of young people, or having in place a policy and a commitment to implement a programme to train and skill youth. A minimum of 30% of the loan amount will be targeting businesses owned, run, employing or primarily serving women to promote gender inclusion and women empowerment in businesses, in line with the 2X Challenge, defining financing criteria for gender equality.

Sector(s)

• Credit lines - Credit lines

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 20 million

Total cost (Approximate amount)

not applicable

Environmental aspects

The Bank will require BMI to take all the requisite measures to ensure that the procedures, including procurement procedures carried out by the Final Beneficiaries for the sub-projects receiving Bank financing, will comply with national legislation and the ElB's Environmental and Social Standards as well as international treaties and conventions signed and ratified by or otherwise applicable and binding in the country.

Procurement

The Bank will require BMI to take all requisite measures to ensure that any procurement procedures carried out by final beneficiaries for the sub-projects that the Bank finances are in accordance with the Bank's Guide to Procurement.

Status

Signed - 23/05/2023