MICROCAPITAL BRIEF: International Finance Corporation (IFC), BNP Paribas Partner on $100m Facility to Increase Agriculture Financing in Sub-Saharan Africa, Eastern Europe

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, and BNP Paribas (Suisse) SA, the Swiss subsidiary of France-based financial services provider BNP Paribas recently teamed up to launch a USD 100 million, three-year risk-sharing facility to support the financing needs of agriculture firms in Sub-Saharan Africa and Eastern Europe.

The facility will operate through the IFC’s Global Warehouse Finance Program, which was opened in 2010 to increase the availability of working capital financing to farmers, traders and exporters in emerging markets by using their own agricultural production as leverage. The program is expected to reach approximately 200,000 farmers across all regions and contribute to food availability for 7.5 million people by 2014 [1]. The total amount of the IFC’s Global Warehouse Finance Program has not been disclosed.

Cinzia Maurer-Tatti, global head of the Transaction Bank Group at BNP Paribas, commented on the new risk-sharing facility as follows: “With IFC’s partnership, we will be able to expand lending to our clients in the agricultural sector in Sub-Saharan Africa and Eastern Europe, providing them with much-needed liquidity [1].”

By Amira Berrada, Research Associate

About International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

About BNP Paribas: Resulting from the 2000 merger between two French banks, Banque Nationale de Paris (BNP) and Paribas, BNP Paribas is a financial services provider headquartered in Paris. The bank has operations in 84 countries and focuses on retail banking, investment banking and wealth management. As of June 2011, it reported total assets of USD 2.7 trillion.

Sources and Additional Resources:

[1]http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/6F6EC7F5D83DE13C852579D400531CE3

MicroCapital.org story, March 5, 2012, “MICROCAPITAL BRIEF: European Union Funds International Finance Corporation (IFC) to Support Microfinance Institution Arvand’s Agricultural Loans in Tajikistan” https://www.microcapital.org/microcapital-brief-european-union-funds-inte

MicroCapital.org story, March 1, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $32m to Garanti Bank Romania for Small and Medium-Sized Enterprises” https://www.microcapital.org/microcapital-brief-international-finance-cor

MicroCapital.org story, September 20, 2011, “MICROCAPITAL BRIEF: BNP Paribas Loans $1.9m to Microfinance Institutions Fundacion Espoir of Ecuador, Amret of Cambodia” https://www.microcapital.org/microcapital-brief-bnp-paribas-loans-1-9m-to

MicroCapital Universe Profile for International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int

MicroCapital Universe Profile for BNP Paribas: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BNP

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.