Norfund Launches in Senegal, Unlocks $4B for Private Sector Growth

Development finance institution Norfund has officially launched operations in Senegal, targeting the country’s private sector with long-term financing and capital support.

With a total portfolio of $4 billion, the fund aims to address structural gaps in Senegal’s financial ecosystem, specifically by enhancing access to credit for small- and medium-sized enterprises (SMEs).

“This is a new fund, active in only about thirty countries, with a total of $4 billion, made available to Senegalese businesses, whether SMEs, mid-sized companies or large companies,” stated Serigne Guèye Diop, Minister of Trade and Industry, Senegal during the launch ceremony last week.

The Minister emphasized the fund’s strategic role in achieving the goals of the Senegal 2050 Plan, noting that limited access to capital – particularly for SMEs – continues to undermine industrial development. Local interest remains prohibitively high, ranging from 10-11%, compared to 2-3% in Europe.

Norfund will offer two financing mechanisms: long-term debt instruments with tenors of up to 15 years and equity financing to support large-scale, transformational industrial projects across strategic sectors.

“Our focus is on sectors with high impact potential – renewable energy, water and waste management, agribusiness, manufacturing and financial services,” stated Ellen Cathrine Rasmussen, Executive Vice President-Scalable Enterprises and Green Infrastructure, Norfund.

The launch is expected to catalyze new investment flows and reinforce Senegal’s industrialization agenda.