The International Finance Corp. will invest USD8 million in a new microfinance fund for sub-Saharan Africa, the Financial reports. It is also expected to provide USD5 million to help the fund minimize its foreign currency risks.
The fund, dubbed the Regional Micro, Small and Medium Enterprise Investment Fund for Sub-Saharan Africa, is sponsored by the KfW and supported by other financial institutions, including the European Investment Bank. It is designed to provide local currency loans to small local banks, nonfinancial institutions and nongovernmental organizations serving small business.
The fund was launched in Berlin on May 5.