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Dual-Key : Providing COVID-19 relief with E-grants in Senegal : Testimonies of Beneficiaries - Alif Group

  • October 06, 2021

  • Dakar, Senegal

Contacts:

Amadou Sy

Amadou.sy@uncdf.org

Communication Lead Dual-Key

Léa DESGRANGES

Portfolio Management Officer

lea.desgranges@uncdf.org

Tatiana Martinez Zavala

M&E Impact Specialist

tatiana.martinez.zavala@uncdf.org

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The innovative project "COVID-19 Platform for the support of the productive sector & vulnerable groups" continues to bear fruit at local level and to benefit the most vulnerable populations.

This initiative, implemented by UNCDF in partnership with the Agency for the Development and Management of Small and Medium Enterprises (ADEPME) and in collaboration with UNDP, helps to increase the resilience of the most fragile micro, small and medium enterprises (MSMEs), cooperatives and family businesses, as well as the Income Generating Activities (IGAs) of youth and women.

This project was launched at a time when the COVID-19 crisis was affecting the most fragile structures: agricultural cooperatives trying to sell their crops, women's groups seeing their activity collapse, MSMEs facing unsustainable costs. The nature of their activities, 97% of which are informal, makes these groups even more vulnerable, as they saw their incomes falling by almost 70% during the pandemic.
UNCDF therefore developed a mechanism to support 20 informal SMEs in the target communities of Bargny, Mont-Rolland, Ndiob, Ndiaffate and Sandiara. This support materialized in the formalization (registration in the trade register, opening of a bank account) of these SMEs, selected for their strong impact on the economic empowerment of women and youth in their communities.


As a result of this technical and operational support, UNCDF transferred grants to these businesses for a total of USD 222,000. The objective of these grants was to help entrepreneurs improve their resilience to the crisis. The support of the COVID-19 Platform was therefore essential for the SMEs and their workers, whose survival depends entirely on the continuation of the businesses.

Alif Group is an important SME in the municipality of Sandiara. Active in the agri-food sector through poultry farming, animal husbandry, cereal processing and the production of feed for livestock and poultry, the company was able to achieve a turnover of up to 1,8 million USD before the pandemic. During the peak season, the company employs dozens of women and facilitates the sale of agricultural produce from farmers in the surrounding villages, thus contributing directly to local economic development.

Alif Group is also a crucial asset for young people in the commune, offering internships to students graduating from vocational training schools.

The pandemic has made it difficult for the company to access bank credit and therefore cash flow to meet certain large orders. These difficulties are the reason why the poultry farm was stopped.
UNCDF therefore granted 19,700 USD as part of the COVD19 Platform initiative. The 19,700 USD in support generated a cumulative turnover of 134,000 USD over the period and made it possible to pay off debts and to purchase equipment. Finally, the financial support made it possible to maintain 40 direct salaried jobs and to recruit 15 women paid by task.

How has the health crisis affected your business?
The restriction on business travel caused a sudden loss of 75% of business for our company, in addition to an inability to meet expenses, obtain support from financial institutions, resulting in numerous layoffs and negotiated departures.
The activities were affected to 80%. To ensure the payment of some expenses, we sold land for housing, production equipment, vehicles, livestock etc.


To what extent has the grant contributed to the economic recovery of your EIG? Did the grant help to maintain jobs? How many jobs?Did the grant enable you to expand your business?
The subsidy immediately enabled us to buy cereals from small-scale farmers who were totally dependent on our contracts with industrialists like the Nestlé Group. We were able to resume the distribution of bakery flours with the National Federation of Bakers of Senegal, restart poultry and livestock breeding as well as the manufacture of poultry and livestock feed.
We have also kept jobs but, above all, created more than 42 jobs, 90% of which are for young people and women. This subsidy has enabled us to restart and develop our activity without having to take out loans either with banks or with the small producers who are our main suppliers.


What impact has the financial support had on your life as an entrepreneur? What professional and/or personal achievements can you testify to at this stage of the project?
It was extraordinary for us entrepreneurs to restart our activities with funds that are not credits.
ALIF Group, thanks to the grant of 19,700 USD, was able to resume its activities of exporting cereal products, the raw material of which is acquired from 1,500 small producers, thus contributing to the creation of a very important value chain. Our company is now able to honour its commitments to clients such as Nestlé and has also embarked on a process of diversifying its activities by embracing the local cereal-based bakery and pastry sector and the processing of local cereals.
At this stage, we are able to keep all of our employees and look forward to the future with much more confidence and serenity thanks to this project.

How would you assess the impact of your activity on the local economy? (Jobs, economic empowerment of youth and women, contributions to taxation, replicability of the project, inspiration for other entrepreneurs...)
Our activity is directly linked to 25 small rural agricultural producers and employs young people and women, some of whom come from the same background.
With an impact of various economic contributions in the municipality of Sandiara, our model has inspired several entrepreneurs and was awarded the trophy of "Best Operator/Innovator in the Millet & Maize sectors in Senegal" in 2014 in Rome.

What are your prospects for your IEG in the short/medium/long term?
We aspire to find technical and financial partners to develop in the municipality of Sandiara a platform of agri-food industries based on the resources of Senegalese agriculture, livestock, poultry and fish farming with simple and ecological integrated community concepts.