United Nations Capital Development Fund (UNCDF), ADEL SAS and CGF Bourse announce the creation of the Territorial Investment Fund (FIT). In the form of an open-end company, the FIT is set up within the framework of the Initiative for the Emergence of the Diaspora and Investments in Territories (INEDIT). Launched two years ago, the objective of this innovative project is to mobilize investments and savings from the diaspora and the Senegalese middle class to support local economic development through decentralized cooperation networks.

The initiative targets both Senegalese living in the country and those in the diaspora to strengthen their engagement in productive investments by establishing financial and legal structures, providing financial training to the emerging middle class and migrants, and offering technical assistance.

"There are many financing options in Senegal, but only a few of them offer financing solutions tailored to the Missing Middle (medium-sized projects [$150K-$15M]), with even fewer for public-private partnerships (PPPs) and small and medium-sized enterprises (SMEs), especially in rural areas. Therefore, channelling remittances is a relevant solution for financing local development and poverty reduction initiatives," says Ms. Christel Alvergne, UNCDF Regional Coordinator.

The activation of this Territorial Investment Fund (TIF) is a key step in the structuring of the initiative following the establishment of a savings plan. The minimum capital is currently 20 million FCFA. More than 40% of the shareholders are members of the Senegalese diaspora. A first fundraising for an investment of 58 million FCFA has just been finalized. This amount will finance the establishment of a bakery initiated by a migrant living in Italy. Established in Keur Massar, the effective start of its activities is thus planned for the beginning of September 2022 at the latest with the return to Senegal of the promoter-operator.

The exclusive collaboration between a United Nations system agency (UNCDF), a management and intermediation company (CGF) and a private equity company with strong local roots (ADEL SAS) allows for the reassurance and, above all, the rapid development of a portfolio of viable and profitable projects for the benefit of investors and local communities.

"The INEDIT project is an experiment that allows members of the Senegalese diaspora and the middle class to learn how their savings can contribute to local economic development. The projects are prepared and de-risked with the support of UNCDF, the financial expertise of CGF Bourse, and the strong local roots of ADEL SAS", says Mr. Oumar Wade, Administrator of ADEL SAS.