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Agropole Nord in Senegal Receives Loan of nearly €87 Million from African Development Bank

On Wednesday, 22 November 2023, the Board of Directors of the African Development Bank Group (www.AfDB.org) approved a €86.89 million loan to Senegal to develop an agribusiness processing zone in the north of the country.

The Bank’s contribution accounts for 30.7% of the estimated €283.05 million total project cost. Other contributors include the Islamic Development Bank (21.2%), the West African Development Bank (15.9%), Sponsor Dette (19.3%) and Sponsor Equity (7.7%). The Senegalese Government is contributing 5.2% of the project cost.

The project aims to improve industrial processing capacities for agricultural, forestry, pastoral, fisheries products, and related services, while also sustainably increasing household incomes and food security. It is one of five integrated and competitive agricultural hubs created by the Senegalese Government under its Plan for an Emerging Senegal for 2025. The project will be implemented by the Senegalese Ministry of Industrial Development and of Small and Medium Industries.

“The project will foster the emergence of three agribusiness development hubs and will facilitate the networking of stakeholders in the value chains,” said Mohamed Chérif, the African Development Bank’s Country Representative in Senegal. “It will serve as a multi-sector platform for the incubation and integration of technologies, equipment, and services to support small and medium-sized enterprises, industries, and professional agricultural organizations. These hubs will help reduce the factors of migration-related fragility and climate change that can be seen in the project area.”

The project intervention area covers the regions of Louga, Matam, and Saint-Louis, with a combined population of some 2.8 million people. It has significant agricultural, forestry, pastoral, and fisheries potential and provides more than 80% of national rice production, 90% of its industrial tomato production, and 50% of its onion production.

During its implementation, the project will support the emergence of three agribusiness hubs through three agribusiness parks in the localities of Ogo, Bokhol, and Dahra, each measuring some 130 to 150 hectares, along with 14 aggregation and services centers, all of which will facilitate the networking of value chain stakeholders.

In terms of expected outcomes, Agropole Nord will enable the processing and marketing of some 2.12 million tonnes of agricultural products from its fifth year of operation. The project is also expected to lead to the creation of 129,800 direct jobs and 298,800 indirect jobs in related services.

As of 31 October 2023, the African Development Bank Group’s active portfolio in Senegal comprised 35 projects with a total commitment of 1,380 billion FCFA.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media contact:
Alexis Adélé
Communication and External Relations Department
media@afdb.org

About the African Development Bank Group:
The African Development Bank Group is the leading development finance institution in Africa. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF), and the Nigeria Special Fund (NSF). Represented in 41 African countries, with an external office in Japan, the Bank contributes to the economic development and social progress of its 54 regional member states. For more information: www.AfDB.org

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