A new €3 million loan agreement between PEBCo-BETHESDA, Benin’s leading microfinance institution, and the International Fund for Agricultural Development (IFAD) is set to create over 10,000 rural jobs by empowering farmers and small businesses with improved access to financial services.
Empowering Rural Communities Through Inclusive Finance
The initiative aims to reach more than 20,000 people, 40% of whom live below the poverty line, with broader benefits expected to impact over 120,000 individuals. Emphasizing inclusive growth, the program will prioritize women and youth, with nearly 75% of loans expected to go to women, and one in three to young people.
“Inclusive finance is a powerful driver of rural transformation,” said Bernard Hien, IFAD’s Regional Director for Western and Central Africa. “This project will strengthen the livelihoods of some of Benin’s most vulnerable rural communities.”
A Milestone for PEBCo-BETHESDA
The loan represents a transformative step for PEBCo-BETHESDA, enabling the organization to scale its outreach and develop innovative, climate-smart financial products.
“This support from IFAD will allow us to empower more rural entrepreneurs to build sustainable livelihoods and adapt to a changing climate,” said Cyrille Hounsou, Managing Director of PEBCo-BETHESDA.
Proven Microfinance Impact
PEBCo-BETHESDA specializes in providing microloans and banking services to individuals who are often excluded from traditional banking systems.
- The average loan for individual farmers is €745 (€816 for men and €680 for women).
- Farmer cooperatives and small businesses typically receive loans averaging €1,799.
These modest but impactful loans help clients access inputs, equipment, and services essential for growth and sustainability.
Supporting Key Agricultural Value Chains
The funding will bolster production in key agricultural sectors such as rice, cassava, maize, pineapple, soya, and horticulture. Loan recipients will benefit from:
- Access to high-yield seeds, fertilizers, and agricultural insurance
- Support for mechanization, agro-processing, and digital financial services
- Training in sustainable and climate-resilient farming techniques
Agriculture at the Heart of Benin’s Economy
Agriculture accounts for 70% of employment and contributes nearly 25% of Benin’s GDP. While recent reforms and international support have driven 4–5% annual GDP growth over the last two decades, poverty remains high, affecting 56% of the population.
IFAD’s Longstanding Commitment to Rural Development
IFAD has played a pivotal role in supporting microfinance since the 1980s, including early backing for the now-famous Grameen Bank, which won the Nobel Peace Prize in 2006. In Benin alone, IFAD has financed 14 development projects since 1978, with a total value of US$552 million, including US$257 million in IFAD investments.
This latest project aligns with Benin’s national development strategy and IFAD’s mission to enhance rural resilience, food security, and inclusive economic growth. It also complements other IFAD-supported programs to drive deeper impact across the country.
