FMO commits $10m to sub-Saharan Africa MSME fund
REGMIFA, the Regional MSME Investment Fund for sub-Saharan Africa, has attracted a further $10 million from Dutch-based entrepreneurial development bank FMO.
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 $160 million.
REGMIFA is a public-private partnership advised by Symbiotics. To achieve its goal, REGMIFA finances microfinance institutions, local commercial banks and other specialised financial institutions, including leasing, factoring, supply chain finance, off-grid solar and fintech companies. 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 $830 through partnering financial intermediaries.
REGMIFA chairman, Laure Wessemius-Chibrac stated, “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.”
“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,” says Huib-Jan de Ruijter, chief investment officer at FMO.
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.