REGIONAL MSME INVESTMENT FUND FOR
Status: Completed investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
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.
What is our 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 do we fund this investment?
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
- Effective date
- 12/9/2010
- End date
- 6/21/2022
- Total FMO financing
- USD 7.53 MLN
- Funding
- FMO NV
-
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