The Huruma Fund grants a loan of 2,5 million euros to the Caurie microfinance institution in Senegal

It concludes its first investment in Africa

With this investment, the Huruma fund aims to generate jobs that benefit more than 9,700 families in that African country.

---

 

El Huruma Fund has completed its first investment in Africa by granting a loan of 2,5 million euros to the microfinance institution Senegal cowrie, leader in financing small farmers. With this investment, the Huruma fund aims to generate jobs that benefit more than 9,700 families in Senegal. The fund will support the growth of Caurie in the agricultural sector with the main objective of this entity reaching more than 17.000 small farmers in the next 3 years.

 

Digitalization for agricultural risk mitigation

 

CAURIE is developing an agricultural credit digitalization process, adapting its risk assessment based on the location of farmers, crop activity and financial situation to reduce the sector's credit risk. The objective is to reduce the credit risk of the agricultural sector. Besides, Caurie promotes climate resilience among its clients.

 

It is one of the two institutions in Senegal that has joined the M initiativeicrofinance for Ecosystem-based Adaptation (MEBA), developed by United Nations in order to increase the resilience of rural producers. The Investment Director of GAWA Capital, Tomás Ribé, has pointed out that “the financing to Caurie is the first investment of the Huruma Fund in a country classified as less developed countries by the OECD and an example of an entity that is transforming to support those agricultural producers most vulnerable to climate change.”

 

The Huruma Fund is managed by GAWA Capital, and financed by the European Commission, FONPRODE, COFIDES and private investors and savers

 

El president of COFIDES, José Luis Curbelo, has highlighted the “opportunity for the Huruma Fund to begin its activity in Africa to support an institution that will contribute to the inclusion of farmers by facilitating their access to financial services and the financing of green projects.” Furthermore, he highlighted this project “is in line with COFIDES' objectives of expanding climate financing throughout the African continent and our commitment to promote sustainable, productive and inclusive economic growth.”

 

In the 23 years since its creation, CAURIE has become the leading microfinance institution in social innovation, reaching more than 85.000 borrowers. Focused on rural areas (63% of its clients), CAURIE reaches more than 73,000 vulnerable women, of which more than 37.000 live in poverty. The entity has remained very close to its clients during the pandemic, mobilizing more than one million euros for cash transfers and food kits.

 

Driven by the launch of specific products that adapt to the needs of small farmers, CAURIE Funding for agricultural activities has increased considerably in recent years. CAURIE currently provides loans to more than 9.400 producers, with an agricultural portfolio of more than 5 million euros.