MICROCAPITAL BRIEF: International Finance Corporation and KfW Entwicklungsbank to Establish Microfinance Institutions (MFIs) in Zambia and Senegal in 2010

The International Finance Corporation (IFC), the investment arm of the World Bank, and KfW Entwicklungsbank (KfW), a state-owned development bank based in Germany, have announced that they will establish microfinance institutions (MFIs) in Zambia and Senegal in 2010.The MFIs will be set up through capacity-building grants from unspecified financial sponsors, as well as investments from IFC, KfW, and other funders. It is unclear which organization is the operator in each case. Houtan Bassir, the IFC Information Officer, has stated that the expansion to Zambia will occur by the end of the second quarter of 2010. This follows the establishment of 6 MFIs in the Democratic Republic of Congo, the Republic of the Congo, Ghana, Madagascar, Nigeria, and Tanzania by IFC and KfW as of December of 2009. MicroCapital reported on the establishment of Advans Banque Congo by IFC, KfW, and Advans Group, a venture capital firm.

By Christopher Maggio, Research Assistant

About:
International Finance Corporation (IFC)

Description:
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees as instruments of poverty alleviation. It “invests in companies and financial institutions in emerging markets” as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.

Organization’s website:
http://www.ifc.org/

About KfW Entwicklungsbank (KfW):
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.

Organization’s website:
http://www.kfw-entwicklungsbank.de/EN_Home/KfW_Entwicklungsbank/index.jsp

Additional Resources:

The Post of Zambia article entitled ‘IFC to set up microfinance institutions in Zambia’: http://www.postzambia.com/post-read_article.php?articleId=5644

MICROCAPITAL STORY: International Finance Corporation (IFC) to Join German Development Bank Kreditanstalt für Wiederaufbau (KfW) and Venture Capital Firm Advans Group in Launching Commercial Microfinance Institution Advans Banque Congo; Will Provide up to $3.1m in Debt and Equity: https://www.microcapital.org/microcapital-story-international-finance-corporation-ifc-to-join-german-development-bank-kreditanstalt-fur-wiederaufbau-kfw-and-venture-capital-firm-advans-group-in-launching-commercial-microfina/

MicroCapital’s Microfinance Universe profile: IFC

MicroCapital’s Microfinance Universe profile: KfW