AFRICA – REGMIFA, an impact investment fund advised by Symbiotics, has attracted a further EUR20 million (US$24.31m) from German-based KfW to promote private investment under the G20 Compact with Africa program initiated under the German G20 presidency.
KfW manages this investment on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
KfW increased its investment in REGMIFA to help finance small and medium enterprises with the objective to create jobs in nine countries in Sub-Saharan Africa that have joined the Compact with Africa.
The investment will finance loans to businesses via selected financial institutions in Benin, Burkina Faso, Côte d’Ivoire, Ethiopia, Ghana, Guinea, Rwanda, Senegal, and Togo. KfW also provided a grant of EUR5 million (US$6.08m) to enhance the capabilities of financial institutions to support small and medium enterprises in these countries.
“Creating local jobs is one of the most important drivers to shape the future of Sub-Saharan Africa. The investments provided by the German Government will go a long way to support small and medium enterprises with financial means to create and sustain jobs,” REGMIFA Chairman Laure Wessemius-Chibrac said
The investment, which has an unlimited maturity, will increase the fund’s total assets to above US$160 million, and will be used for investments and as a risk mitigation cushion for other private and public investors in the fund.
To achieve its goal, REGMIFA finances microfinance institutions, local commercial banks and other financial institutions that provide funding to micro, small and medium sized enterprises. REGMIFA currently operates in 19 countries in Sub Saharan Africa, of which 13 belong to the least developed countries.
“The REGMIFA fund is a perfect match with our goal to increase the financial inclusion of micro, small and medium enterprises to foster development and combat poverty in Sub-Saharan Africa,” Jan-Martin Witte, Director Global Equity and Funds of KfW Development Bank, said.
“After being instrumental in the foundation of REGMIFA 10 years ago, KfW continues to support the fund on behalf of the German Federal Government in another strategic step enlarging its scope to the benefit of the African economy and society.”
Symbiotics is the leading market access platform for impact investing, dedicated to financing micro- small and medium enterprises and low- and middle-income households in emerging and frontier markets.
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