FMO supports inclusive finance in Africa

HAGUE, Netherlands, Capital Markets in Africa — The Dutch development bank, FMO, has provided a five year loan for USD 10 million from the MASSIF fund to VisionFund International (VFI), a global microfinance organisation.  This transaction will especially benefit rural communities and female clients from VisionFund’s African microfinance institutions (MFIs). In addition, FMO has also provided a USD 275,000 Capacity Development (CD) grant to support VFI with an innovative approach to disaster resilient microfinance.

VFI funds and manages a large network of MFIs in developing countries and is focused on providing access to finance in mainly unserved (rural) areas. The MFIs in VFI’s Africa network are mostly rural-based and high scoring on social performance but lack the necessary size to be funded directly by FMO. As a leading impact investor FMO can play an important role in supporting the growth of these MFIs by providing debt capital to VFI.

Mr. Scott Brown, President and CEO of VisionFund International said: ”The financing provided by FMO is important as it allows us to increase our range of basic financial services and offer them to more communities that would otherwise remain financially excluded. A very small and affordable loan provides the opportunity to buy equipment or stock needed to set up a small business and increase a family’s income. A small investment upfront can help to remove the obstacles to self-sufficiency, not just for that one family, but also for future generations.”

Mr. Jeroen Harteveld, Investment Officer of FMO commented: “VisionFund has built an impressive network of microfinance institutions across the globe focusing on high impact markets in rural areas and on providing funds to female entrepreneurs. The FMO financing is focused on supporting longer-term financial access to these underserved communities thereby supporting poverty alleviation and job creation.”