Berlin – Frankfurt, Germany, May, 05 2010 – BMZ and KfW development bank to set up first regional investment fund for micro and small enterprises in Sub-Saharan Africa. Funding commitments of over USD 150 million to strengthen private sector through local currency loans and improve personal incomes across Sub-Saharan Africa. Earlier today the first regional investment fund for micro, small and medium enterprises in Sub-Saharan Africa (short, Regmifa instead) was formally launched at a signature ceremony in Berlin. The ceremony was attended by Gudrun Kopp, Parliamentary Secretary of State at the Federal Ministry for Economic Cooperation and Development (BMZ); Dr. Norbert Kloppenburg, Member of the Board of KfW Banking Group and representatives of the Spanish Development Agency (AECID); IFC, a member of the World Bank Group; the European Investment Bank (EIB) and other development institutions participating in the fund. Investors participating in the fund committed more than more than USD 150 million. BMZ and KfW Development Bank will contribute approximately USD 33 million. The fund will develop a credit portfolio of about USD 200 million by 2014. This will be the first time that a dedicated fund provides microfinance institutions in Sub-Saharan Africa with a range of key financing instruments, including long-term debt and quasi-equity financing such as subordinated local currency loans. More…

Source: Symbiotics