Mali, Development of Village Saving and the Credit Banks

Country: Mali
Project details
Services:
Access to finance
Capacity building
Enterprise development

Development of Village Saving and the Credit Banks, Mali, 2003-2005

Donors: Winrock International / Rabobank Foundation

Partners: World Neighbors, Kilabo, GRAT

Goal

The objective of the partnership was to introduce an inventory credit program in Mali and, at the same time, strengthen the capacity of local NGOs to guide such programs. EUCORD took over the activity from Winrock International in July 2003.

What We Do

  • Train the leaders of farmers’ organizations on inventory credit techniques, sale and market negotiation, agricultural product control techniques and governance
  • Capacity building of banks and credit programs
  • Assure the synergy of actions between Winrock and EUCORD programs.

Accomplishments

  • The success of the program helped the village banks to provide credit for other purposes than commodity storage, e.g. for irrigation equipment, seed and fertilizers
  • The four banks serve over 67 villages
  • The credit program serves as a powerful incentive for farmers to organize themselves into rural associations
  • The Tissala bank demonstrated that with an initial loan of 15 million FCFA, farmers were able to completely refund the loan within 5 years (including an 8% interest rate)
  • The Tissala bank contributed to the enforcement of rural communities’ access to agricultural credit and to the improvement of their economic situation and livelihoods
  • The increasing number of beneficiaries, from 105 in 2002 to 433 in 2008.