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: EUR 114,000
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Duration: 2022 ~ 2024


Project Category Diaspora Investment
Rural Development
Target Groups:
  • Small and medium-sized agri-food businesses (SMEs) in the Kayes and Koulikoro regions in Mali and diaspora investors in France
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. Its partners on the project are Cofides Nord-Sud for the installation of the guarantee, Consult Step, KC Elite Holding and Amassa for technical support to businesses in Mali.

Geographic Target

Mali

Outcomes

  • At the end of an 18-month project, IFAD and Fadev enabled a group of 18 people from the diaspora to form an investors' club and invest in an agro SME in Mali. A guarantee was set up to facilitate the adhesion of the pioneer investors.
  • This achievement is the result of an iterative approach. In particular, using multi-channel communication, it was possible to test the appetite of different segments of the diaspora in France, and to fine-tune the targeting and marketing strategy throughout the project.
  • The experience of FADEV and its partners in Mali led to the identification of a resilient agricultural processing business with an innovative profile and a growth plan that would meet the expectations of diaspora investors.
  • Inspired by the CIGALES solidarity investor group model in France, the legal model evolved to formalize an investment from France in a company in Mali.
  • IFAD's support has made it possible to set up the necessary mobilization and financial education for the diaspora, as well as the technical support required by the entrepreneur to open up her capital. These costs, assumed by the donor, enable professional impact investor FADEV to raise additional funds from the diaspora to support SMEs in Africa.

Project Repository