KfW invests €20m in impact fund
The Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA), an impact investment fund advised by Symbiotics, has attracted a further €20 million from German-based KfW to promote private investment under the G20 Compact with Africa programme, 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 programme. 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 €5 million to enhance the capabilities of financial institutions to support small and medium enterprises in these countries.
The investment in class C-Shares for an unlimited maturity will increase the fund’s total assets to above $160 million, and will be used for investments and as a risk mitigation cushion for other private and public investors in the fund.
The REGMIFA fund is a public-private partnership that focuses on financing 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 among the least developed countries.
REGMIFA chairman Laure Wessemius-Chibrac stated: “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.”
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