The German Federal Ministry of Economic Cooperation and Development (BMZ) and the German development bank KfW recently launched a regional investment fund for micro, small and medium-sized enterprises (MSMEs) in Sub-Saharan Africa. The fund, which has raised USD 150 million in commitments, will provide direct funding for approximately 50 microfinance institutions (MFIs), which are expected to lend to over 300,000 small businesses in local currency.
Prospective investors in the fund include: the Spanish Ministry of Foreign Affairs (MAEC), the Spanish Agency for International Cooperation for Development (AECID), the Spanish Development Bank (ICO), the International Finance Corporation (IFC), a member of the World Bank, the Belgian Investment Company for Developing Countries (BIO), the Development Bank of Austria (OeEB) the Development Bank of the Netherlands (FMO), the European Investment Bank (EIB), the European Commission/EuropeAid, the French Development Agency (AFD), the Investment and Promotions Company for Economic Cooperation (PROPARCO), the Norwegian Microfinance Initiative (NMI), and the African Development Bank (AfDB). The investment manager is Geneva-based Symbiotics Investment Management S.A.
By Stefanie Rubin, Research Associate
About KfW Entwicklungsbank:
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.
Additional Resources:
Source Article: KfW: Reducing poverty through greater involvement in Africa
MicroCapital Universe: KfW Entwicklungsbank
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