Belgium-based impact investor Incofin Investment Management recently signed agreements with three government-backed institutions, the European Investment Bank (EIB), Société de Promotion et de Participation pour La Coopération Economique (PROPARCO) of France and the Belgian Investment Company for Developing Countries (BIO), to commit approximately EUR 2 million (USD 2.6 million) to launch a technical assistance fund (TAF) to be known as agTAF. The fund is intended to provide non-financial support to entrepreneurs involved in agriculture and rural development. AgTAF will complement agRIF, which – as Incofin’s third “Rural Impulse Fund” – invests directly in small and medium-sized enterprises (SMEs) as well as funders of microenterprises and SMEs in rural parts of low- and middle-income countries.
Incofin is a for-profit firm with a portfolio spanning 350 companies in 51 countries providing “opportunities for vulnerable or less privileged people to improve their lives.” This portfolio, valued at USD 1 billion as of 2018, comprises the following funds: agRIF, BRS Microfinance Coop Fund, Fairtrade Access Fund, Fonds pour l’inclusion financière en République Démocratique Congo (FPM), Incofin CVSO, Invest in Visions, RIF II, Volksvermogen and a loan portfolio of vdk Bank.
Established in 2001, BIO aims to support a “strong private sector in developing countries, to enable them to gain access to growth and sustainable development within the framework of the [UN’s] Sustainable Development Goals.” As of 2017, it has total assets of EUR 887 million (USD 1.0 billion).
Created in 1958, EIB works in approximately 160 countries and is owned by 28 EU member countries. Since 2013, EIB has provided EUR 30.7 billion (USD 34.9 billion) in co-financing to the agricultural sector.
Paris-based PROPARCO, founded in 1977, serves as a development finance institution within Agence Francaise de Développement (AFD). PROPARCO focuses on private sector development in areas including Africa, Asia, Latin America and the Middle East. As of 2017, PROPARCO reports total assets of EUR 5.4 billion (USD 6.1 billion).
By Michelle Fleming, Research Associate
Sources and Additional Resources
Incofin press release
http://www.incofin.com/eib-proparco-and-bio-support-incofins-new-ta-facility-to-foster-agricultural-and-rural-lending-in-developing-countries/
BIO homepage
http://www.bio-invest.be
EIB homepage
http://www.eib.org
PROPARCO homepage
https://www.proparco.fr
Incofin homepage
http://www.incofin.com
MICROCAPITAL BRIEF: Shanghai Commercial and Savings Bank (SCSB) Buys 80% of AMK of Cambodia from Agora Microfinance, Incofin’s Rural Impulse Fund II, Norfund’s Cambodia-Laos Development Fund, Proparco
https://www.microcapital.org/microcapital-brief-shanghai-commercial-and-savings-bank-scsb-buys-80-of-amk-of-cambodia-from-agora-microfinance-incofins-rural-impulse-fund-ii-norfunds-cambodia-laos-development-fund/
MICROCAPITAL BRIEF: BIO Loans XacLeasing $5m for Leasing Vehicles, Equipment to SMEs in Mongolia
https://www.microcapital.org/microcapital-brief-bio-loans-xacleasing-5m-for-leasing-vehicles-equipment-to-smes-in-mongolia/
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