CREATION OF THE 1ST ISLAMIC MICROFINANCE INSTITUTION IN SENEGAL 8TH GLOBAL ISLAMIC MICROFINANCE FORUM, DUBAI, 25-26 NOVEMBRE 2018 CREATION OF THE 1ST ISLAMIC MICROFINANCE INSTITUTION IN SENEGAL Presented by Madame Oulimata DIOP General Manager of the Waqf High Authority, Sénégal

SUMMARY 1- PRESENTATION OF THE PROJECT 2- FINAL OBSERVATION

PRESENTATION OF THE PROJECT A. Title and location of the projet Title of the project: Creation of the 1st Islamic Microfinance institution in Sénégal Location of the projet : Nationwide B. Bénéficiaries They are the vulnerable targets of the Senegalese population (women, young people) who make up the majority of the population and who do not have access to credit. C. Project Holder The Waqf High authority(WHA)

PRESENTATION OF THE PROJECT D. Description of the project     Islamic microfinance does not exist in Senegal yet, where there is no Islamic microfinance institution, while 95% of the population are Muslim.         The supply of micro-credit for the poor is made up only of traditional structures that practice usurious interest rates of 20% to 23%, this situation accentuates the poverty of the poor sections of the population, especially women who turn to these institutions to finance income-generating activities and install them in a cycle of chronic indebtedness.         With this situation in mind, the Government of Senegal and the Islamic Development Bank (IDB) signed a framework agreement protocol on September 7, 2012 for the creation of the first Islamic microfinance institution in the country.

PRESENTATION OF THE PROJECT D. Description of the project This project for the creation of the 1st Islamic micro finance institution aims to develop a range of Islamic financial products and services to promote the empowerment of vulnerable targets of the Senegalese population (women, youth) and allow their financial and economic inclusion. The Islamic microfinance institution will be a public limited company with a share capital of 5 billion CFA francs.    The Islamic microfinance institution has the corporate name "Bouchra" which means luck.

PRESENTATION OF THE PROJECT E. Involved Actors STATE OF SENEGAL Islamic Development Bank (IDB) Islamic Bank of Senegal (IBS) Union of Mutuals of the Parternership for the Mobilization of Savings and Credits (UM-PAMECAS) Waqf High Authority (WHA) Sovereign Strategic Investment Fund (SSIF/FONSIS) Insurers

PRESENTATION OF THE PROJECT F. Share Capital : 5 billion CFAF

PRESENTATION OF THE PROJECT G. State of progress Fixing of the share capital; Closing of the shareholders’ round table; And elaboration of most of the elements that must constitute the applicatioin file for approval. Completed deliverables The draft statuts of the future Islamic Microfinance Company; The graphic chart with the logo and the name of the Company; The organization chart of the General Management and a typical agency; The standard contracts for the distribution of Islamic products; The description of the management and information system; The business Plan; The policies and administrative, financial and accounting procedures manual; The leaders and staff training plan; The shareholders’pact; The recruitment of the General Manager is being finalized. The last step is the release of the capital from the prospective shareholders to constitute the Company.

BUSINESS PLAN : AGENCIES DEVELOPMENT NETWORK

BUSINESS PLAN : EVOLUTION OF THE CREDIT AND DEPOSIT liabilitiES

Business plan : EVOLUTION of the financial products

Business plan : EVOLUTION OF THE RESULTS AND SELF-FINANCING CAPACITY

BUSINESS PLAN : Evolution OF THE SHAREHOLDERS’ FUND

Balance sheet management BUSINESS PLAN : Evolution OF THE PROFITABITY INDICATORS, BALANCE SHEET MANAGEMENT, PORTFOLIO QUALITY INDICATORS   A1 A2 A3 A4 A5 STANDARD Profitability Return on assets -3% 1% 3% 4% > 3% Profitability of shareholders’ fund -4% 9% 15% > 15% Operational self-sufficiency 84% 103% 124% 138% 136% > 130% Profit margin -18% 14% 19% > 20% Balance sheet management Asset liquidity ratio 34% 25% 22% 5% > 5% Capitalization ratio 70% 48% 35% 26% 20% Portfolio quality Portfolio classified as risky 2% Provision rate for outstanding debts 30% 40% 45% 50% > ou = 40% Debts loss rate 0,12% 0,16% 0,20% 0,22% <2%

PRESENTATION OF THE PROJECT H. Expected Impacts Promotion and development of Islamic Finance in senegal ; Development of the supply of Islamic financial products and services adapted to the needs and conditions of the disadvantaged sections of the population; Strenghthening the financial inclusion of the poor; Creation of a lever to finance the empowerment of poor targets.

PRESENTATION OF THE PROJECT Financing needs The Waqf High Authority, solicits a donation to contribute up to 10% of the share capital of the 1st Islamic microfinance institution in Senegal.   It also seeks a refinancing fund for the institution that will be created to enable it to have resources to start its microcredits activities.

FINAL OBSERVATION The participation of the Waqf High Authority in this project will enable it, through the monetary waqf, to fight against poverty through the empowerment of the poor.

THANKS MADAME OULIMATA DIOP, GENERAL MANAGER OF THE WAQF HIGH AUTHORITY, SENEGAL EMAIL : oulimata.diop@haw.gouv.sn