In March 2021, OeEB signed its third investment in REGMIFA (Regional MSME Investment Fund for Sub-Saharan Africa). The funds are used to finance local micro, small and medium-sized enterprises (MSMEs) in Sub-Saharan Africa as well as to support low- and middle-income households in financing essential goods and services.
|Project name||Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA)|
|Sector||Financial sector / Microfinance / SME|
|OeEB project volume||USD 20 million|
REGMIFA is an investment fund that provides innovative financing for micro, small and medium-sized enterprises in Sub-Saharan Africa. The funds are distributed to MSMEs through local partner institutions - above all microfinance institutions, non-banking finance institutions and local banks. In addition, the fund’s focus is to be expanded to include the financing of essential goods and services, such as affordable housing, clean energy supply, health care and education, for low- and middle-income households.
The innovative element of the fund is that it offers credit lines to the MFIs in local currencies. This leads to a reduction of currency risk and therefore lower costs for microloans.
The loans provided by REGMIFA make a significant contribution to the financial inclusion of local MSMEs as well as to creating jobs and generating income.
REGMIFA is managed by Symbiotics, an impact fund manager based in Switzerland with many years of experience in the microfinance sector in Africa. OeEB has been invested in REGMIFA since 2010 and currently holds shares amounting to USD 20 million. In addition, OeEB provided Business Advisory Services funds for REGMIFA's Technical Assistance Facility.