NMI News
NMI Commits USD 7 Million to Newly Established Microfinance Facility for Sub-Saharan Africa
Oslo, Norway - 5 May 2010: NMI Global Fund today announced an investment of USD 7,000,000 in the newly established Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA). REGMIFA is the first regional investment fund that will support micro-entrepreneurs and medium and small enterprises (MSMEs) in Sub-Saharan Africa through medium and long-term loans to Microfinance Institutions (MFIs). REGMIFA will provide loans largely in local currency and will also provide targeted technical assistance to these MFIs.
REGMIFA has received initial capital commitments of over USD 150 million and expects to develop a credit portfolio of about USD 200 million by 2014. The Fund will lend to roughly 50 MFIs, which in turn will make local currency loans to an estimated 300,000 small businesses and micro-entrepreneurs. The German Development Bank (KfW) is the lead sponsor of REGMIFA and the Fund will be managed by Symbiotics, one of the premier microfinance fund managers.
REGMIFA is NMI's first fund to invest exclusively in Sub-Saharan Africa and confirms NMI's commitment to investing in the region. REGMIFA will be a cornerstone investment for the NMI Global Fund in Sub-Saharan Africa and may provide NMI with a variety of co-investment opportunities.
"There is substantial unmet demand for local currency debt products in Sub-Saharan Africa," said Richard Weingarten, Managing Director of NMI and member of the REGMIFA Board. "In addition, medium and long-term financing are difficult to obtain and highly beneficial for small African MFIs and financial institutions."
NMI is a founding investor in REGMIFA. Other founding investors include the Ministry for Economic Co-operation and Development (BMZ), 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) 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 French Development Agency (AFD), the Investment and Promotions Company for Economic Cooperation (PROPARCO), and the African Development Bank (AfDB).
"Our investment partners in REGMIFA are some of the most prominent development agencies working in Africa. We are delighted to be able to invest with these firms and to participate in this highly developmental activity in Sub-Saharan Africa," said Mr. Weingarten.