Swami Agri stands as a key player in Senegal’s agricultural sector, producing 80% of the country’s potatoes and 9% of its onions across nearly 3,700 hectares. To combat post-harvest losses and stabilize food prices, the company is leveraging this first-ever agricultural green bond to implement critical infrastructure. The initiative includes five solar-powered cold storage facilities and a photovoltaic plant, which will significantly reduce losses and carbon emissions.

« Food security remains a challenge not just in Senegal but across West Africa. The biggest hurdles are transportation and storage of harvests. These new facilities will directly address price volatility by reducing post-harvest losses by at least 50% and cutting CO² emissions by 20 to 30%. This investment transforms the agricultural value chain structurally », explains Ababacar Diaw, CEO of Impaxis Securities, the Senegalese merchant bank orchestrating the operation.

Revolutionizing agricultural financing in West Africa

This financial instrument, valued at 30 billion FCFA, is the first of its kind in the West African Economic and Monetary Union (UEMOA) market, which has traditionally been dominated by public debt. The issuance demonstrates how private sector actors are now turning to innovative financial mechanisms to fund sustainable development projects and bolster food self-sufficiency.

Impaxis Securities has already facilitated green bonds through the West African Development Bank (BOAD) in 2024, totaling $400 million. The potential for agricultural enterprises across the region is substantial, offering diversification in financial products and addressing long-standing financing barriers.

« Entrepreneurs often face insurmountable challenges securing bank loans due to high interest rates and stringent collateral requirements. Financial markets present a viable alternative, making funding more accessible beyond traditional state or institutional channels », notes Abdou Diaw, an economic journalist and lecturer at Cesti.

Regulatory frameworks, however, still need strengthening. « More must be done to enhance regulations, raise awareness, and educate stakeholders on how these instruments work », he adds.

The subscription period for this green bond runs from July 30 to August 5. Structured like a traditional bond, it offers a coupon with an interest rate, targeting regional investors such as insurers, pension funds, institutional investors, cash-rich corporations, and individuals.