NMI News
KfW and NMI Invest in Goodwell West Africa to Support Growth of Microfinance in Ghana and Nigeria
Amsterdam – 11 June 2010: Goodwell West Africa announced today that it has received commitments from KfW (Euro 8 million) and the NMI Frontier Fund (Euro 1.6 million). This private equity company will invest in microfinance in Ghana and Nigeria. Goodwell West Africa has now completed its second closing at Euro 16 million.
In Ghana and Nigeria, a large share of the population is financially excluded or not served by formal or high-quality financial service providers. The financial infrastructure to reach these groups is lacking or inadequate in both countries. The objective of Goodwell West Africa is to build this financial infrastructure by investing in a variety of microfinance institutions (MFIs) in Ghana and Nigeria. The Company will invest primarily in established MFIs with potential for high growth and transformation, as well as in emerging and early-stage MFIs that need financial and professional support to develop and grow rapidly.
Goodwell West Africa’s strategy is to provide a combination of growth capital, on the ground support to local MFI management teams, and access to the expertise and a global network of experienced microfinance practitioners. The Company is managed by a partnership of investment managers including Goodwell Investments BV, Alitheia Capital and JCS Investments, based in the Netherlands, Nigeria and Ghana, respectively
Karl-Heinz Fleischhacker, Head of Division, Financial and Private Sector Sub-Saharan Africa of KfW Development Bank: “With Goodwell West Africa MDC, we are happy to conclude our first investment under the Microfinance Initiative for Sub-Saharan Africa II, an initiative which aims at strengthening Sub-Saharan microfinance networks. For us, the partnership between Goodwell Investments BV and the local managers Alitheia Capital and JCS Investments is a strong value added. For German bilateral Financial Cooperation, both Ghana and Nigeria are focal countries for financial sector development and offer the potential to significantly increase access to finance for the economically active poor.”
Richard Weingarten, Managing Director of NMI: “We are pleased to make this investment in Goodwell West Africa and to be working closely with Goodwell in Nigeria and Ghana. These two countries are Focus Countries for the NMI Frontier Fund, and we believe that both markets have significant potential. We are also particularly pleased to be able to support the local management teams in Ghana and Nigeria and to thus help build local capacity for making microfinance investments.”
Els Boerhof, Partner Goodwell Investments comments: “Nigeria and Ghana are dynamic markets offering a wide range of opportunities for developing microfinance. We are delighted that KfW and NMI have recognised this and have given us the mandate to put their money to work to deepen the financial sector in West Africa. We are pleased to welcome these leading microfinance investors on board, and we are confident that this will inspire other professional investors to join our investor group as we expand the fund in the next year. "
About:
KfW Entwicklungsbank (The German Development Bank) is the world's largest financier of microfinance in developing and transitional countries. In 2009 the commitments accounted for one third of the total KfW portfolio (EUR 1.1 billion) in the financial sector. On behalf of the German Federal Government it finances reforms, infrastructure and financial systems for socially and ecologically compatible economic growth. As part of KfW Bankengruppe it is a worldwide financing partner, and it also employs funds of its own for development projects. KfW Entwicklungsbank knows about the potentials and problems in developing countries thanks to its close cooperation with local partners and target groups.
The Norwegian Microfinance Initiative (NMI) is a new and innovative strategic partnership between the Norwegian public and private sectors that invests in MFIs in developing countries and provides professional assistance and technical support for these institutions. The mission of NMI is to contribute to the empowerment of poor people and to the creation of jobs, wealth, and economic and social sustainability in developing countries by investing in and supporting MFIs. NMI makes investments through two investment funds: NMI Global Fund and NMI Frontier Fund. NMI’s investors have committed NOK 600 million (about USD 100 million) to the NMI Global Fund and the NMI Frontier Fund.
Goodwell Investments is a social investment firm focused on equity funds for the microfinance sector. Its mission is to “invest good and do well”. The company launched its first fund, Goodwell Microfinance Development Company, in 2006. In 2007, together with Aavishkaar from India, it launched Aavishkaar Goodwell India Microfinance Development Company. Goodwell’s investors include development banks FMO and IFC, pension funds, family foundations and funds-of-funds. The combined amount committed by investors to Goodwell’s funds is USD 55 million. Goodwell plans to grow its funds to more than USD 100 million in 2011.
For more information please contact:
KfW Press department:
Dr. Charis Pöthig
Phone: +49 69 74 31-46 83
Mobile: +49 174 34 34 566
Email: charis.poethig@kfw.de
The Norwegian Microfinance Initiative (NMI)
Richard Weingarten, Managing Director, NMI AS.
Phone; +47 22 36 22 40
E-mail: info@nmimicro.no
Goodwell Investments
Els Boerhof, Partner
Phone: +31 35 6772661
Mobile: +31 654 793713
Email: els@goodwell.nl