Mobilization of investment from the Malian diaspora for the benefit of MSMEs in the agri-food sector in Mali

IFAD is partnering with FADEV through the EU Emergency Trust Fund for Africa (EUTF) Mali programme to implement a new venture capital investment solution for the Malian diaspora in France called YiriMali. This investment fund will provide diaspora members a formal and profitable investment vehicle to invest in SMEs in the agri-food sector in the Malian regions of Kayes and Koulikoro.

Budget:

Financed: EUR 285,000
Co-Financed:

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Duration: 2022 ~ 2024

Project Category Diaspora Investment
Rural Development

Target Groups:

Mali, mostly rural areas in the Kayes and Koulikoro regions, and its remittance corridor from France.
Target groups:
- Agri-food small- and medium-enterprises (SMEs) benefiting from diaspora investments
- Diaspora investors

Programme

FFR Strategic Framework

Mali Diaspora investment

Project Goals

The project has the overall goal of reducing rural poverty and supporting economic growth through decent work in Mali through the mobilization of investment from the diaspora. The specific objective is to develop employment in rural areas in the Kayes and Koulikoro regions through the investment of the diaspora in agri-food MSMEs.

Implementing Partners

FADEV is a French social enterprise founded in 2013, specialized in impact investment in Africa. FADEV provides SMEs with financial, technical and technological support through its partners in Mali. The company has raised and invested € 1.5 million in 27 African companies in Cameroon, Ivory Coast, Mali and Senegal. Project partners: • Cofides Nord-Sud – Coopérative Financière pour le Développement de l’Economie Solidaire • Consult Step • KC Elite Holding

Geographic Target

Mali

Outcomes

The project conducted several awareness-raising interventions and engaged with diaspora leaders in France to build trust within their communities.
While FADEV had mobilized some 30 members of the diaspora sufficient to create the first two clubs, they faced the banks' refusal to open an account for such clubs. The solution was the creation of an association, FADEV Passerelle, which unites all diaspora members interested in investing in Malian SMEs, and for which it was possible to open an account.
As of December 2023, the association comprised two groups of diaspora investors wishing to invest in two agricultural enterprises in FADEV's portfolio in Mali.
In 2023, FADEV selected six SMEs in the agri-food sector in Mali, including two in the Kayes region, for diaspora investment. The selection process was entirely managed by FADEV, as no businesses were proposed by diaspora members, the diaspora being more likely to invest in businesses selected by a professional. FADEV's Malian partners started to create investment files for these businesses, compiling all necessary business information for potential investors. The first finalized files were presented in December 2023 to the FADEV investment committee in France, which assesses alignment with FADEV's criteria. The committee gave a positive opinion on the two projects of investment presented for Bouboulait (a company collecting fresh milk from breeder cooperatives and then transforming it into pasteurized fresh milk, curds, yogurt, cheese, etc.) and Sanzara (a grocery store selling fresh and processed local agri-food products).