Deal marks IFC’s first Islamic finance agreement in Sub-Saharan Africa, aims to triple SME loan portfolio over five years
The International Finance Corporation (IFC) has signed a landmark $40 million financing agreement with Banque Islamique du Sénégal (BIS) to expand lending to micro, small, and medium-sized enterprises (SMEs). The deal, concluded on October 7, 2025, during the Invest in Senegal Forum, is structured under a Mourabaha agreement, aligning with Islamic finance principles.
This marks IFC’s first Islamic finance transaction in Sub-Saharan Africa, highlighting a strategic push to diversify financing models in the region.
BIS to Triple SME Lending to $350 Million
BIS, Senegal’s fourth-largest bank with total assets of $1.8 billion at the end of 2024, aims to triple its SME loan portfolio to nearly $350 million within five years. The bank confirmed that at least 10% of the IFC financing will be dedicated to women-led businesses.
“This partnership will enable the bank to expand its financing offer and better address the needs of small enterprises,” said BIS Managing Director Aminata Faye Seck.
In 2024 alone, BIS disbursed over 110 billion CFA francs in loans to SMEs operating in agriculture, agribusiness, industry, and services.
Addressing Senegal’s SME Financing Gap
According to government data, SMEs represent 99.8% of Senegalese businesses, generate 80% of jobs, and contribute 36% of the country’s GDP. Despite their critical role, SMEs receive only 9% of total bank loans — a gap the IFC-BIS partnership aims to narrow. The failure rate for small firms remains high, with around 60% closing within their first year.
Beyond funding, IFC will also provide advisory support to BIS in areas such as risk management, environmental and social governance, and SME-focused strategy development.
A Catalyst for Islamic Finance in West Africa
Although 94% of Senegal’s population is Muslim, Islamic finance remains a nascent sector. The IFC-BIS deal is expected to catalyze broader adoption of Islamic financial instruments both within Senegal and across the West African region.
BIS was originally established in 1983 as Massraf Fayçal Al Islam, making it one of the pioneers of Islamic banking in Senegal.