Background
At the summit of 2007 in Heiligendamm, the G8 endorsed the establishment of an investment fund for the promotion of Micro, Small and Medium Sized Enterprises (MSMEs) in Sub-Saharan Africa. KfW (the German Development Bank), supported by the German Ministry for Economic Cooperation and Development (BMZ), developed and established this initiative in close collaboration with Development Finance Institutions, International Financial Institutions and Donor Governments.
The Regional MSME Investment Fund for Sub-Saharan Africa S.A., SICAV-SIF (REGMIFA) was launched on 5 May 2010 and qualifies as a Société d’ Investissement à Capital Variable – Fonds d’Investissement Spécialisé (SICAV-SIF) under Luxembourg Law. It is a multilayered fund structured to attract both, public and private investors, looking to promote impact with a risk adjusted return.
The Technical Assistance Facility (TA Facility) was set-up as an independent entity from the Fund and was structured as a fiduciary agreement under Luxembourg law in July 2010. The TA Facility offers the REGMIFA’s lending institutions various capacity building services to reinforce their internal processes or to further develop their service offering to MSMEs.
Symbiotics, a Geneva based asset management company specialized in impact investing, is acting as both the Investment Manager and the TA Facility Manager of REGMIFA.
Lubricant Producer, Nigeria
Mission
The mission of REGMIFA is to build a unique public-private partnership between donors, development finance and international finance institutions, private investors and African stakeholders to foster economic development and prosperity in Sub-Saharan Africa, through the provision of demand-oriented financing to qualified and, to the extent necessary, technically supported partner lending institutions servicing micro, small and medium-sized enterprises (MSMEs).
In pursuing its development goals, the Fund will observe principles of sustainability and additionality, combining public mandate and market orientation.
Farmer, Kenya
Investment Approach
REGMIFA is a private debt fund which focuses on refinancing regulated and non-regulated microfinance institutions, local commercial banks and other financial institutions, which are established in Sub-Saharan African countries and serve micro, small and medium enterprises (MSMEs).
REGMIFA offers primarily long term senior loans, subordinated debt and term deposits, in either local currency or USD. The Fund aims to build a diversified balanced portfolio, with small and medium-sized financial institutions comprising an important part of the client mix.
MSMEs form the backbone of many economies, acting as engines for growth and income generation. Today, access to finance is still by far the largest obstacle to growth for MSMEs alike, particularly in low and middle-income markets. In order to be part of the economic development taking place in their markets, and consequently provide income opportunities to their managers and employees, MSMEs need to have a greater access to funding.
REGMIFA aims to removing these obstacles and unlock the growth potential of MSMEs in Sub-Saharan Africa.
Sustainable Development Goals targeted by REGMIFA:
