The European Investment Bank (EIB), the investment body of the European Union, has launched the East African Community Microfinance Facility, a EUR 50 million (USD 65.4 million) loan program to “encourage job creation and increase access to long-term funding for micro and small enterprises” in East Africa. The investment facility will provide banks and microfinance institutions (MFIs) local-currency funding, technical assistance and training. Two Kenya-based lenders, Faulu Kenya Deposit Taking Microfinance Limited and Co-operative Bank Kenya, are the first to participate in the program. Faulu Kenya and Co-operative Bank Kenya have been approved to access the equivalent of USD 5.23 million and USD 26.2 million in local currency from the facility, respectively. EIB is expected to launch two similar microfinance investment facilities in sub-Saharan over the next three years.
For the year 2010, Faulu Kenya reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 33.2 million, approximately 85,000 borrowers, total deposits of USD 23 million and approximately 226,000 depositors. For the year 2010, Co-operative Bank Kenya reported total assets of USD 1.76 billion.
EIB’s priorities include financing investments in likely future EU member states and EU partner countries, principally in the area of small and medium-sized enterprises. In 2010, the EIB approved projects with a total value of USD 110 billion.
For the year 2011, Sub-Saharan microfinance providers reported to the US-based nonprofit Microfinance Information Exchange (MIX) an aggregate gross loan portfolio of USD 14.9 billion and total deposits of USD 13.8 billion.
By Brendan Millan, Research Associate
About European Investment Bank (EIB): Created in 1958, EIB serves as the long-term lending bank of the European Union. In addition to supporting projects in EU member states, its main priorities include financing investments in likely future member states and EU partner countries, principally in the area of small and medium-sized enterprises. In 2010, the EIB approved projects with a total value of USD 110 billion. According to its website, “the EIB operates on a non-profit maximizing basis and lends at close to the cost of borrowing.”
About Faulu Kenya Deposit Taking Microfinance Limited: Faulu Kenya is a deposit-taking microfinance company based in Kenya. Faulu Kenya was founded as a program of Food for the Hungry International (FHI), a relief and development organization based in the US city of Phoenix, Arizona. As of 2012 Faulu Kenya has approximately 90 branches and 350,000 clients. For the year 2010, Faulu Kenya reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 33.2 million and total deposits of USD 23 million.
About Co-operative BankKenya: Founded in 1965, Co-operative Bank Kenya is a licensed commercial financial services institution in Kenya. For the year 2010, Co-operative Bank Kenya reported total assets of USD 1.76 billion.
Sources and Resources:
[1] European Investment Bank: “EIB Launches EUR 50m East AfricaMicrofinance Program”, http://www.eib.org/projects/press/2012/2012-050-eib-launches-eur-50m-east-africa-microfinance-programme.htm
MicroCapital.org Article, March 21, 2012, “MICROCAPITAL BRIEF: European Investment Fund, Banca Transilvania Sign $10m Loan Agreement for Microfinance in Romania”, https://www.microcapital.org/microcapital-brief-european-investment-fund-banca-transilvania-sign-10m-loan-agreement-for-microfinance-in-romania/
MicroCapital.org Article, December 20, 2011, “MICROCAPITAL BRIEF: European Investment Fund (EIF) Released Call for Expression of Interest,” https://www.microcapital.org/microcapital-brief-european-investment-fund-eif-releases-call-for-expression-of-interest/
MicroCapital Universe Profile: European Investment Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Bank+%28EIB%29
MicroCapital Universe Profile: Faulu Kenya Deposit Taking Microfinance Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kenya+Deposit+Taking+Microfinance+Limited
MicroCapital Universe Profile: Food for the Hungry International (FHI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Food+for+the+Hungry+International+%28FHI%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: LOLC Buys 28% Equity Stake in Unguka Bank, Provider of Microfinance in Rwanda, from Incofin
- MICROCAPITAL BRIEF: Credit Bank, FSD Kenya Engaging SACCOs in Effort to Reduce Remittance Costs for Rural Kenyans
- MICROCAPITAL BRIEF: EIB Loans $214m to Sicredi for Solar Panels for Households, SMEs in Brazil
- SPECIAL REPORT: Yikri of Burkina Faso Wins $110k European Microfinance Award for Progress Toward Food Security #EMW2023
- MICROCAPITAL BRIEF: Reefy Microfinance Borrows $6.5m from EBRD for Youth-led MSMEs in Egypt
