Progression Eastern African Microfinance Equity Fund (PEAMEF), a limited-life investment fund incorporated in Mauritius, has launched its operations in Nairobi, Kenya, with a mission aimed at improving microfinance in Kenya, Tanzania, Rwanda, Zambia and Uganda. PEAMEF plans to disburse eight to ten deals of between KES 125 million (USD 1.5 million) and KES 680 million (USD 8 million) for a period of five to eight years. It will seek to invest in companies in the microfinance sector including technology, mobile payment, housing, and credit and savings. According to a statement attributed to Lydia Koros, co-founder and managing partner of the financier, PEAMEF will also push to be represented on the board of directors of each investee. The fund plans to receive gains of between ten and 15 percent.
The targeted size of PEAMEF, which had its first closing in December 2011, is USD 40 million. Core investors include the European Investment Bank (EIB), a lending institution of the European Union; the Norwegian Microfinance Initiative (NMI), a partnership between public and private sectors that invests in MFIs in developing countries; KfW Entwicklunsbank, a German development bank; and CDC Group, a UK development finance institution.
By Charlotte Newman, Research Associate
About Progression Eastern African Microfinance Equity Fund (PEAMEF)
The Progression Eastern African Microfinance Equity Fund (PEAMEF) is a limited-life investment fund incorporated in Mauritius. It aims to promote financial inclusion and facilitate the development of microfinance institutions and related organizations in East Africa through equity and equity-related investments. PEAMEF is targeting USD 40 million of committed capital. The fund had its first closing on December 20, 2011. Core investors include the European Investment Bank (EIB), the Norwegian Microfinance Initiative, German development finance institution KfW Entwicklungsbank and CDC Group of the UK.
Sources and Additional Resources:
Financial Times: “East Africa: Development Funds Put $40m into Private Equity for Microfinance,” http://blogs.ft.com/beyond-brics/2012/03/08/east-africa-development-funds-put-40m-into-private-equity-for-microfinance/#axzz1oKp4xERX
MicroCapital.org story, February 9, 2012, “MICROCAPITAL BRIEF: UK’s CDC Group Invests $10m in Progression Eastern African Microfinance Equity Fund (PEAMEF),” https://www.microcapital.org/microcapital-brief-uks-cdc-group-invests-10m-in-progression-eastern-african-microfinance-equity-fund-peamef/
MicroCapital Universe Profile: Progression Eastern African Microfinance Equity Fund (PEAMEF)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Progression+Eastern+African+Microfinance+Equity+Fund+%28PEAMEF%29
MicroCapital Universe Profile: European Investment Bank (EIB)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Bank+%28EIB%29
MicroCapital Universe Profile: Norwegian Microfinance Initiative
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Norwegian+Microfinance+Initiative+%28NMI%29
MicroCapital Universe Profile: KfW Entwicklungsbank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=KfW+Entwicklungsbank+%28KfW%29
MicroCapital Universe Profile: CDC Group
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CDC+Group
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