MICROCAPITAL BRIEF: Fonds pour l’inclusion Financière en République Démocratique du Congo (FPM) Receives Authorization from Central Bank of the Congo to Issue Wholesale Financing to Lenders Serving Micro-, Small, Medium-Sized Enterprises (MSMEs)

Fonds pour l’inclusion Financière en République Démocratique du Congo (FPM) SA, a nonprofit organization based in the Democratic Republic of the Congo (DRC) that was formerly known as Fonds de Promotion de la Microfinance, recently received authorization to operate as a financial company from the Central Bank of the Congo, DRC’s central banking authority. This allows FPM to lend to financial institutions that provide credit to micro-, small and medium-sized enterprises (MSMEs) in the country, building upon FPM’s existing instrument, FPM Association Sans But Lucratif, which provides technical assistance to similar financial institutions.

According to Belgian Minister for Development Cooperation Alexander De Croo, “By supporting the development of an inclusive financial system in the DRC, FMP SA will play a leading role in financing entrepreneurship and the local private sector, which will also result in job creation, poverty reduction and sustainable positive effects on the local economy.”

FPM plans to disburse approximately USD 60 million in credit to Congolese financial institutions over the next five years. The organization has received USD 13 million in funding from Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW), a state-owned development bank in Germany; USD 8 million from the Belgian Investment Company for Developing Countries (BIO); USD 4 million from the Dutch Catholic Organization for Relief and Development Aid (Cordaid); and USD 100,000 from Belgian microfinance fund Incofin. FMP SA is advised by Incofin Investment Management, a private Belgian company.

As of 2012, FPM reported total assets of USD 6 million and a gross loan portfolio of USD 6 million disbursed to 3,600 MSMEs. As of 2013, BIO reported a portfolio value of EUR 373.9 million (USD 474.3 million) and total new commitments during the year of EUR 124.5 million (USD 158 million). As of 2013, Cordaid’s portfolio was valued at EUR 44 million (USD 56 million). KfW reported total assets of EUR 476 billion (USD 651 billion) as of October 2013. Incofin manages eight facilities with total outstanding investments of EUR 350 million (USD 479 million) as of 2014.

By Charlotte Newman, Research Associate

About Fonds pour l’inclusion financière en République Démocratique Congo (FPM)

Fonds pour l’inclusion financière en République Démocratique Congo is a nonprofit that was established in the Democratic Republic of Congo (DRC) in 2007 and is also known by the name “Fonds de Promotion de la Microfinance.” It aims to reduce poverty in DRC by providing financial and technical assistance services to lenders to micro-, small and medium-sized enterprises (MSMEs) as well as low-income households. It is funded by German development bank Kreditanstalt für Wiederaufbau (KfW), the United Nations Development Programme (UNDP), the United Nations Capital Development Fund (UNCDF), the Belgian Investment Company for Developing Countries (BIO), Netherlands-based Catholic Organization for Relief and Development (Cordaid) and the US-based World Bank. FPM provided technical assistance to approximately 50 financial institutions in the DRC between 2007 and 2014. In 2014, FPM raised USD 25 million that it plans to use to begin lending on a wholesale basis during 2015.

About Belgian Investment Company for Developing Countries (BIO)

The Belgian Investment Company for Developing Countries, also known its Dutch acronym BIO, was established in 2001 by the Belgian government in an effort to promote the creation of a strong private sector in developing countries to enable them to achieve prosperity through sustainable development. As of 2013, BIO’s portfolio included 132 projects. As of 2013, BIO reported a portfolio value of EUR 373.9 million (USD 474.3 million) and total new commitments during the year of EUR 124.5 million (USD 158 million) during 2013.

About Catholic Organisation for Relief and Development Aid (Cordaid)

The Catholic Organization for Relief and Development (Cordaid), is a Netherlands-based nonprofit development organization. Cordaid works in 38 countries in Africa, Asia, and Latin America. As of 2013, Cordaid’s portfolio value was EUR 44 million (USD 56 million).

About Incofin Investment Management

Incofin Investment Management is a private Belgian company that develops and manages funds investing in microfinance institutions (MFIs) in developing countries. It manages eight facilities with total outstanding investments of EUR 350 million (USD 479 million) in approximately 39 countries as of 2014.

About Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW)

Headquartered in Frankfurt am Main, Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW) is a state-owned development bank in Germany. KfW has three goals: to reduce poverty, to make globalization “fair” and to conserve natural resources. KfW collaborates with local financial institutions in approximately 60 countries, including microbanks, commercial banks, village savings banks, non-governmental organizations and regional microfinance funds. KfW made new financing commitments of EUR 1.7 billion (USD 2.3 billion) through the first three fiscal quarters of 2013 and reported total assets of EUR 476 billion (USD 651 billion) as of October 2013.

Sources and Additional Resources:

BIO Press Release, “FPM SA Receives License from Central Bank of Congo

MicroCapital.org, October 1, 2014, “BIO, Cordaid, Incofin, KfW Commit $25m to Launch Wholesale Fund for DRC Under Nonprofit Fonds pour l’inclusion financière en République Démocratique (FPM)

MicroCapital.org, February 24, 2014, “MFX Solutions, Fonds pour l’Inclusion Financière en République Démocratique Congo to Provide Technical Assistance to Banks, Microfinance Insittutions (MFIs)

MicroCapital Universe Profile: Fonds pour l’inclusion financière en République Démocratique Congo (FPM)

MicroCapital Universe Profile: Belgian Investment Company for Developing Countries (BIO)

MicroCapital Universe Profile: Catholic Organisation for Relief and Development Aid (Cordaid)

MicroCapital Universe Profile: Incofin Investment Management

MicroCapital Universe Profile: Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW)

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