In a groundbreaking move for the West African financial landscape, Swami Agri, a subsidiary of the Indo-Senegalese group Senegindia, has successfully launched a 30 billion FCFA green bond. This marks the first-ever Agri Green Bond issued on the regional financial market of the West African Economic and Monetary Union (WAEMU), a market traditionally dominated by public debt instruments.
The proceeds from this first-of-its-kind bond will exclusively fund the acquisition of five solar-powered cold storage units and a photovoltaic power plant. These critical investments aim to revolutionize the agricultural sector by addressing key challenges in food preservation and energy supply.
«When discussing food sovereignty and security, the critical issue in our regions isn’t just production, but the efficient transport and storage of harvests. This is where price surges and inflation originate. These new facilities will directly address these challenges by significantly reducing post-harvest losses and stabilizing market prices for consumers », explains Ababacar Diaw, CEO of Impaxis Securities, the Senegalese investment bank orchestrating this landmark transaction.
Swami Agri currently accounts for 80% of Senegal’s potato production and 9% of its onion supply, operating across nearly 3,700 hectares. The new infrastructure is expected to cut post-harvest losses by at least 50% while reducing CO₂ emissions by 20 to 30%. «This investment will structurally transform the agricultural value chain, creating ripple effects throughout the economy », the CEO emphasizes.
Private sector embraces green financing for sustainable agriculture
This initiative follows Impaxis Securities’ successful launch of a green bond for the West African Development Bank (WADB) in 2024, totaling $400 million. The growing interest from private agricultural enterprises signals a shift toward diversified funding sources beyond traditional banking channels.
«The primary hurdle for entrepreneurs remains access to financing. Banks impose stringent collateral requirements and high interest rates that are often prohibitive. Financial markets now present a viable alternative, making capital more accessible to businesses beyond just governments and large financial institutions », notes Abdou Diaw, economic journalist and lecturer at Cesti.
He adds, «However, significant work remains in strengthening regulatory frameworks, raising awareness, and educating stakeholders about how these instruments operate. Effective communication will be crucial for broader adoption ».
The subscription period for this green bond runs from July 30 to August 5. Structured like traditional bonds, it offers a coupon with an attached interest rate. The target investor base includes regional insurers, pension funds, institutional investors, cash-rich corporations, and individual investors.
