Project detail - REGIONAL MSME INVESTMENT FUND FOR

REGIONAL MSME INVESTMENT FUND FOR

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Who is our client

The Regional MSME Investment Fund for Sub-Saharan Africa S.A., SICAV-SIF (REGMIFA) was launched in 2010 by KfW in close collaboration with experienced development finance institutions (DFIs), international financial institutions and donor governments. The mission of REGMIFA is to foster economic development and prosperity, as well as employment creation, income generation and poverty alleviation in sub-Saharan Africa. REGMIFA supports this mission by providing innovative financial products and technical assistance support to eligible partner lending institutions that serve micro-, small- and medium-sized enterprises (MSMEs). The fund is managed by Symbiotics SA, a specialized asset management company based in Geneva, Switzerland, which acts as both Investment Manager and Technical Assistance Facility Manager.

Funding objective

By investing in REGMIFA, FMO will help to address the unmet demand for local currency financing for MSMEs in sub-Saharan Africa. FMO has been involved with REGMIFA since its foundation, following a strategy of supporting the growth of the fund and to ensuring its financial viability. FMO also supported the start up phase of the fund by financing a market study with capacity development financing. REGMIFA represents an efficient investment opportunity for FMO, with acceptable risk due to the fund’s diversification, strong risk management and an experienced fund manager.

Why we fund this project

The fund is founded on the principles of the Paris Declaration; it seeks to increase donor effectiveness by pooling resources and harmonizing standards in its investment and technical assistance support activities. The fund thus observes the principles of sustainability and additionality, combining public mandate and market orientation. Removing the obstacles to African MSMEs and unlocking the potential of local capital markets is a priority for the fund's investors, making it a strong strategic fit to FMO's own mandate. FMO's financing is used to target Tier 2/3 financial institutions with local currency products, and thus fills a financing gap. FMO's early involvement with REGMIFA also played an important catalyzing role for other DFI lenders to co-invest.

More investments

Date Total FMO financing
6/30/2021 USD 10.00 MLN
Region
Africa
Country
Africa
Sector
Financial Institutions
Signing date
12/9/2010
Total FMO financing
USD 7.53 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B