REGIONAL MSME INVESTMENT FUND FOR
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
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 debt financing in USD and local currency, and as needed technical assistance support, to eligible partner lending institutions that serve micro-, small- and medium-sized enterprises (MSMEs). REGMIFA 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 is helping to address the unmet demand for local currency financing for MSMEs in sub-Saharan Africa. FMO has been involved with REGMIFA since its foundation, supporting the growth of the fund and ensuring its financial viability. 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?
REGMIFA 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. REGMIFA 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 in fragile states and 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.
What is the Environmental and Social categorization rationale?
The investment is categorised as E&S Category C given the nature and size of the fund’s loans and the focus of its partner lending institutions on financing MSMEs. REGMIFA does not have exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions.
More investments
| Date | Total FMO financing |
|---|---|
| 6/21/2022 | USD 7.53 MLN |
- Region
- Africa
- Country
- Africa
- Sector
- Financial Institutions
- Publication date
- 6/21/2021
- Effective date
- 6/30/2021
- Total FMO financing
- USD 10.00 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) - C