The German Federal Ministry of Economic Cooperation and Development (BMZ) and the German development bank KfW recently launched a regional investment fund for micro, small and medium-sized enterprises (MSMEs) in Sub-Saharan Africa. The fund, which has raised USD 150 million in commitments, will provide direct funding for approximately 50 microfinance institutions (MFIs), which are expected to lend to over 300,000 small businesses in local currency.
Prospective investors in the fund include: the Spanish Ministry of Foreign Affairs (MAEC), the Spanish Agency for International Cooperation for Development (AECID), the Spanish Development Bank (ICO), the International Finance Corporation (IFC), a member of the World Bank, the Belgian Investment Company for Developing Countries (BIO), the Development Bank of Austria (OeEB) the Development Bank of the Netherlands (FMO), the European Investment Bank (EIB), the European Commission/EuropeAid, the French Development Agency (AFD), the Investment and Promotions Company for Economic Cooperation (PROPARCO), the Norwegian Microfinance Initiative (NMI), and the African Development Bank (AfDB). The investment manager is Geneva-based Symbiotics Investment Management S.A.
By Stefanie Rubin, Research Associate
About KfW Entwicklungsbank:
KfW Entwicklungsbank is a state-owned development bank based in Germany. The main avenue used by KfW is to conduct German bilateral cooperation on behalf of the government in pursuit of three goals: to reduce poverty, to make globalization fair and to conserve natural resources.
Additional Resources:
Source Article: KfW: Reducing poverty through greater involvement in Africa
MicroCapital Universe: KfW Entwicklungsbank
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- SPECIAL REPORT: Banco FIE of Bolivia Takes $100k “Financial Inclusion that Works for Women” European Microfinance Award 2022
- MICROCAPITAL BRIEF: Seedstars Accepting Applications from Fintechs Offering “Financial Innovations for Women Affected by Migration” Through July 30
- MICROCAPITAL BRIEF: Papara of Turkiye Acquires Rebellion Pay Mobile Money Service from Beka Finance of Spain in Cash, Equity Deal
- MICROFINANCE EVENT: Global Forum on Remittances, Investment and Development (GFRID); June 14-16, 2023; Nairobi, Kenya
- SPECIAL REPORT: Nurturing Young Entrepreneurs with Revenue-based Repayments, Accounting Apps, Bank Guarantees