Regional MSME Investment Fund for Sub-Saharan Africa receives $10m commitment
FMO has announced a $10 million investment in the fund, which is advised by Symbiotics.
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Dutch development finance institution FMO has announced a $10 million investment in the Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA), advised by Symbiotics. This new funding will help REGMIFA grow its portfolio across sub-Saharan Africa, offering financial support to micro, small, and medium-sized businesses, as well as low- and middle-income households through selected financial institutions.
REGMIFA collaborates with a variety of entities, including microfinance institutions, fintech startups, and mid-sized banks focused on SME financing.
Key for FMO is that the fund reaches financial institutions that on-lend to MSME end-borrowers that are either too small or risky for FMO to directly invest in and is active in countries outside of FMO’s portfolio (such as Niger, Angola, and Mali) — allowing FMO to maximise its impact in even more countries across the African continent.
Juan Jose Dada Ortiz, director financial institutions at FMO, commented: “By renewing our commitment to REGMIFA through our long-term partner Symbiotics, we’re able to reach smaller financial institutions and end-beneficiaries in LDCs and frontier markets outside of our portfolio, allowing us to maximise our impact. Our investment in the fund is 2X Challenge-aligned due to the strong female leadership on the REGMIFA Board, its focus on gender-lens investing, and having over 30% of end-borrowers being female. Together with Symbiotics, we look forward to fostering economic development throughout the sub-Saharan African region.”
Laure Wessemius-Chibrac, chairwoman of the REGMIFA board, added: “Our strengthened alliance with FMO embodies our commitment to nurturing the entrepreneurial spirit in Africa. This substantial investment is more than financial support; it's a catalyst for innovation and resilience, enabling micro and small enterprises to flourish and positively impact countless lives.”
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