MICROCAPITAL BRIEF: Oikocredit Loans $2.5m to Grace and Mercy Microfinance Institution to Support MSMEs, Women Entrepreneurs in Nigeria

Oikocredit, a Netherlands-based cooperative, recently offered a loan of USD 2.5 million to Grace and Mercy Households Improvement Initiative, a nonprofit microfinance institution in Nigeria. The loan is intended to support the expansion of micro-, small and medium-sized enterprises in both rural and urban areas, with an emphasis on women entrepreneurs.

Founded in 2012, Grace and Mercy focuses on “providing financial opportunities for the poor and low-income earners in their quest to escape poverty through consistent and appropriate injection of small funds into their business.” The institution provides loans ranging from NGN 100,000 (USD 242) to NGN 5 million (USD 12,000) for tenures up to one year. As of March 2021, Grace and Mercy operates in 13 states of Nigeria and has approximately 180,000 clients and a total loan portfolio of NGN 8.7 billion (USD 21 million).

Founded in 1975, Oikocredit invests debt and equity in financial inclusion, agriculture and renewable energy in Africa, Asia and Latin America with the goal “to invest responsibly… to improve the quality of life of low-income people or communities in a sustainable way.” As of March 2021, Oikocredit finances approximately 550 partners and has total assets of EUR 1.24 billion (USD 1.50 billion).

By Teo Lin-Bianco, Research Associate

Sources and Additional Resources

Oikocredit press release
https://www.oikocredit.coop/k/en/n2613/news/view/342838/9049/oikocredit-invests-usd-2-5-million-in-grace-and-mercy-to-expand-lending-to-women-in-rural-communities-across-nigeria.html

Grace and Mercy homepage
https://www.graceandmercyinitiative.org/

Oikocredit homepage
https://www.oikocredit.coop/

Oikocredit annual report 2020
https://www.oikocredit.coop/en/publications/annual-reports

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