AFRICA – Dutch-based entrepreneurial development bank FMO has invested a further US$10 million in REGMIFA, the Regional MSME Investment Fund for Sub-Saharan Africa and a public-private partnership advised by Symbiotics SA.
This additional funding will support the growth of Africa’s MSME sector and foster economic development through employment creation, income generation and poverty alleviation.
The investment will finance loans to businesses and low- and middle-income households via more than 50 selected financial institutions.
The investment in class B-Shares for a maturity of seven years will increase the fund’s total assets to above US$160 million.
“FMO has been investing in REGMIFA since its inception in 2010 and is pleased to continue to do so. REGMIFA is aligned with FMO’s reducing inequalities strategy and provides FMO with an opportunity to reach more end clients in more markets across Sub Saharan Africa,” said Huib-Jan de Ruijter, Chief Investment Officer at FMO.
“The investment provided by FMO in B Shares underlines the trust in REGMIFA and will go a long way to support small and medium enterprises.”Laure Wessemius-Chibrac -Chairman, REGMIFA
To achieve its goal, REGMIFA finances microfinance institutions, local commercial banks and other specialized financial institutions, including leasing, factoring, supply chain finance, off-grid solar and Fintech companies.
“REGMIFA is a unique blended finance structure that has successfully combined the provision of debt finance and technical assistance for more than 10 years. The investment provided by FMO in B Shares underlines the trust in REGMIFA and will go a long way to support small and medium enterprises,” Laure Wessemius-Chibrac, REGMIFA Chairman, said.
REGMIFA currently operates in 20 poor and difficult-to-access countries in Sub Saharan Africa, of which 13 belong to the least developed countries.
It thereby provides financial intermediaries with a stable source of long-term, local currency financing coupled with technical assistance.
Thereby REGMIFA indirectly supports 165,000 micro-entrepreneurs and households that receive on average a loan of US$830 through partnering financial intermediaries.
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