FEFISOL MICROFINANCE FUND

Equity participation in the Fonds Européen de Financement Solidaire pour l’Afrique (“FEFISOL” or the “Fund”), a specialised rural microfinance Fund created with the aim to provide medium-term financing to rural Microfinance Institutions (“MFIs”) and small producer businesses active in fair trade, organic products and food production. The Fund will mainly provide debt but also equity and guarantee instruments throughout Africa, including North Africa and Sub-Saharan Africa. Technical Assistance (“TA”) support will be provided to selected portfolio companies. The Fund will mostly make loans in local currency. The Fund will be managed by the French social investor and microfinance services provider SIDI, along with 2 other social investors from Italy and Belgium Etimos and Alterfin.

This operation aims to meet the objectives of the Cotonou Agreement for the eradication of poverty by supporting the improvement in the quality, availability and accessibility of financial services and the development of modern financial institutions and sustainable microfinance operations.

The strategic objectives that will be achieved through this operation are:

• Increase availability of medium to long term financing in local currency for less developed intermediaries in underserved regions of Africa
• Direct support of small businesses and producer organisations active in fair trade and organic food across the African continent
• Indirect support to microfinance institutions’ clients and small producers active throughout the agricultural value chain through investments in microfinance institutions and producer organisations and small businesses.

Widely accepted microfinance standards will be followed by the Fund, including the Client Protection Principles in microfinance adopted by EIB. SIDI, Alterfin and Etimos apply strict social standards in due diligence process and the appraisal of investee companies.

Not applicable.