IFC extends US$40M loan to boost Mali’s agricultural SMEs

MALI – Mali’s National Bank for Agricultural Development (BNDA) has received a $40 million loan from the International Finance Corporation (IFC) to increase financing for small and medium-sized enterprises in agriculture.

The IFC, which is part of the World Bank Group, also added an extra $10 million to support trade finance and make it easier for businesses to import and export essential goods.

The funding is set to help BNDA grow its loan portfolio for agricultural SMEs to more than $270 million over the next five years.

Most of the money will go to smallholder farmers, cooperatives, and businesses that focus on environmentally friendly practices. BNDA has also committed to directing 25% of the loans to women-led businesses and 10% to projects that promote climate-smart farming, renewable energy, and sustainable irrigation.

According to estimates, the initiative could raise BNDA’s green finance portfolio by nearly 90% and create between 8,600 and 14,200 jobs within five years. “This partnership with IFC will allow us to increase our support to farmers, SMEs and women entrepreneurs across the country. It will also allow us to more fully integrate digital and sustainable solutions, thereby expanding access to finance, boosting productivity, and strengthening national food security,” said Badara Aliou Coulibaly, BNDA’s CEO.

Building capacity and green finance

The IFC will also help BNDA refine its agricultural lending approach, manage financial risks more effectively, and embed gender equality and green finance principles into its operations. It will support the development of new credit scoring tools designed specifically for small businesses and cooperatives.

Agriculture employs about 70% of Mali’s population but contributes only 38% of the country’s GDP. Most farms remain small, averaging about 4.8 hectares, and often struggle with limited access to water and low investment in production processes.

The IFC loan is expected to help address these challenges by giving local enterprises the financial resources they need to grow.

This investment aligns with IFC’s broader effort to strengthen agriculture and food systems across Africa. In recent months, IFC has announced several similar partnerships in West Africa aimed at expanding access to finance for rural entrepreneurs and promoting climate-friendly farming practices.

By improving credit access and technical capacity, the IFC and BNDA hope to create a more resilient agricultural economy in Mali. “Access to finance remains one of the biggest challenges for small agribusinesses,” an IFC representative said. “Our goal is to help local banks expand lending to those who need it most while supporting sustainable growth in the sector.”

The collaboration marks a significant step toward improving Mali’s food production and supporting thousands of farmers and small business owners who form the backbone of the nation’s rural economy.

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