Four organizations have joined forces to create a $35 million syndicate fund for microfinance investment in Africa. The fund will loan money to African microfinance institutions (MFIs), and by coordinating lending, seek to lend more efficiently.
The contributors are no strangers to microfinance investment. Most significantly, the Dutch social investment society OikoCredit is one of the world leaders in microfinance investment with a loan portfolio of E60 million. Also on board is Stromme Microfinance, a Norwegian Christian charity that has funded NGOs and churches since 1976. Less information is available on the other two contributors. Jitegemee Trust, which was created as a joint venture between the Kenyan and Dutch governments, is dedicated to providing aid to arid regions. The European Union and Kenyan government fund the Micro Enterprise Support Programme Trust (MESP). The MESP provides monetary and institutional support for MFIs. But it appears to be typical of quasi-governmental agencies that try to do everything from making loans to developing products to providing technical assistance to public policy.
The syndicate will be based in
In addition, the syndicate will consider loan applications from MFIs throughout
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): Microfinance Capital Markets Update is the best source for monthly updates on debt and equity deals in microfinance.
2) Group Raises Sh2.6bn to Fund Small Business
3) Overview of the Outreach and Financial Performance of Microfinance Institutions in Africa
4) Microfinance Information Exchange
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