Release date: 12 December 2014
Promoter – Financial Intermediary
Selected financial intermediaries based in Southern Africa countries and defined as participating intermediary microfinance institutions (MFIs), or banks engaging in financing MFIs, or banks engaged in financing micro and small enterprises.Location
Description
Regional financing facilility to provide medium to long-term funding to micro and small enterprises through selected financial intermediaries in Southern African ACP countries. Loans to final beneficiaries are planified at on average USD 10,000. In addition to funding, there will be a technical assistance facility providing support to financial intermediaries and to final beneficiairies.
Objectives
In line with the promising track record of the previous two Eastern Africa Microfinance Facilities, the SA Microfinance Facility shares the same ultimate objectives which is to promote job creation and maximise the development impact of micro and small enterprises through enhanced access to funding. The EIB via its regional office in Pretoria, South Africa, aims to provide funding of total EUR 50m to selected financial intermediaries in SA countries to reach micro and small enterprises, specifically enterprises benefiting from loans up to EUR 50,000 (the average loans to final beneficiaries is projected to be EUR 10,000). Apart from financing micro and small enterprises, the SA Microfinance Facility will provide technical assistance services to financial intermediaries and final beneficiaries.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 50 million
Total cost (Approximate amount)
Not disclosed.
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 2/12/2014
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).