MICROCAPITAL BRIEF: OPIC, Calvert, Swiss Agency for Development and Cooperation, EIB Invest $12m in Participatory Microfinance Group for Africa (PAMIGA) to Support Access to Solar Power, Irrigation in Rural Africa

The Overseas Private Investment Corporation (OPIC), a development finance institution backed by the US government, and the Calvert Foundation, a US-based nonprofit community development financial institution, recently signed agreements to loan USD 6.25 million to Pamiga Finance S.A. (PFSA) to help it spread access to solar energy and micro-irrigation systems in rural Africa [1]. PFSA is an investment company owned by the Participatory Microfinance Group for Africa (PAMIGA), which is a France-based microfinance network that seeks to enhance access to financial services in Africa.

With USD 4.75 million in senior debt from OPIC and USD 1.5 million from the Calvert Foundation, PFSA’s new USD 12 million investment facility will issue approximately 100,000 microloans during seven years in Benin, Burkina Faso, Cameroon, Kenya, Madagascar, Senegal, Tanzania and Togo. The rest of the funding comes from European Union’s European Investment Bank and the Swiss Agency for Development and Cooperation [1].

As of May 2015, PAMIGA has 25 partner microfinance institutions and offices in Senegal and Kenya. As of 2014, OPIC reported total assets of USD 8.92 billion. As of March 2015, Calvert Foundation has a portfolio of approximately USD 232 million deployed in147 investments.

By Caroline Zhu, Research Associate

About Overseas Private Investment Corporation (OPIC)

The Overseas Private Investment Corporation (OPIC) is an agency of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US to identify opportunities in emerging markets and create an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans as well as guarantees, political risk insurance and investment funds. In 2014, OPIC made total commitments of USD 2.96 billion with active projects in 101 countries. As of 2014, OPIC reported total assets of USD 8.92 billion.

About Calvert Foundation

Founded in 1995, Calvert Foundation, a US-based nonprofit community development financial institution (CDFI), provides loans to organizations that provide affordable housing, microfinance and community facilities. As of 2014, the Calvert Foundation reported total assets of USD 293 million. As of March 2015, it has a portfolio of approximately USD 232 million deployed in 147 investments.

About Participatory Microfinance Group for Africa (PAMIGA)

Based in Paris, France, the Participatory Microfinance Group for Africa (PAMIGA) is a microfinance network that seeks to enhance access to financial services in Africa. PAMIGA offers microfinance institutions (MFIs) technical assistance, financial resources and access to new technologies. As of May 2015, PAMIGA has 25 partner microfinance institutions and offices in Senegal and Kenya. Financial information on PAMIGA is not available.

Sources and Additional Resources:

[1] OPIC Press Release, “OPIC, Calvert Foundation Finalize Support to PAMIGA Finance, Spreading Renewable Resources Access in Rural Africa,” https://www.opic.gov/press-releases/2015/opic-calvert-foundation-finalize-support-pamiga-finance-spreading-renewable-resources-access-rural-africa

MicroCapital Universe Profile: Overseas Private Investment Corporation (OPIC)

MicroCapital Universe Profile: Calvert Foundation

MicroCapital Universe Profile: Participatory Microfinance Group for Africa (PAMIGA)

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: