FMO Supports Inclusive Finance in Africa
The Dutch development bank, FMO, provided a five year loan for USD 10 million from the MASSIF fund to global microfinance organisation VisionFund International (VFI). 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.”
Photo (L-R): Mr. Jeroen Harteveld (Financial Institutions - Africa Investment Officer, FMO), Mr. Scott Brown (President & CEO, VisionFund International) and Mr. Bas Rekvelt (Financial Institutions – Africa Manager, FMO), at the signing.
About FMO
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Its mission is to empower entrepreneurs to build a better world. FMO invests in sectors where it believe its contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, FMO invests in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
Press Contact: Paul Hartogsveld p.hartogsveld@fmo.nl + 31 (0) 70 314 99 28
About VisionFund International
For over 10 years, as World Vision’s microfinance partner, VisionFund has been improving the lives of children in the developing world by offering small loans and other financial services to families living in poverty. Our clients are able to develop successful businesses, which enable them to ensure their children grow up healthy and educated. With over 1.1 million clients, VisionFund’s microfinance institutions impacted close to four million children in the last 12 months through a network of institutions located in more than 30 countries in Africa, Latin America, Asia, and Eastern Europe. Client repayment rates for VisionFund loans remain consistently high at over 97% and VisionFund is a signatory of the SMART campaign to uphold the highest industry standards and ensure client protection.
Press contact: Miranda Barham miranda@mirandabarham.com +44 (0)7899030304