Fefisol II

Development impacts

• Local economic growth

  Financing of different MFIs and a strong MSME and agricultural and/or rural outreach, enabling effects expected in terms of job support, value-added and local economic growth

  Financing and strengthening of agricultural entities engaged in the production or processing and sale of agricultural products, which can directly contribute to strengthening the agricultural value chains, creating (rural) employment and fostering local value-added economic growth.

• Private sector consolidation/innovation

  Focus on the private sector through direct or indirect financing in a widely underserved market.

  More than 75% of the loan portfolio will be invested in Sub-Saharan Africa

  Fund with a strong impact mindset (including clear impact commitments and targets) and supported by social investors with strong knowledge and high experience

  Providing Technical Assistance (TA) to help investees consolidate businesses and guarantee their economic and social viability, including through strengthening their governance, management, and ESG practices, as well as the uptake of environmentally sustainable practices and digitalization of processes and products (for MFIs)

• Financial inclusion

  Financing MFIs that provide mainly income-generating activities, with at least 50% of their portfolio dedicated to financing rural clients and/or vulnerable populations and/or micro and small enterprises, including in the agricultural sector.  

  Contributing to the diversification of the financial offer

• Food security & rural development

  Supporting MFIs with a strong rural presence and outreach with high potential in terms of financial inclusion and economic development

  Targeting smallholder producer organizations and agricultural SMEs - agricultural entities - that source over 60% of their raw material from smallholder farmers, supporting economic activities in rural areas and strengthening local agri-value chains, and that target premium and certified markets - especially fair trade and organic.

• Promotion of ESG best practices

  Widely accepted microfinance standards are promoted and monitored for MFIs, including the Client Protection Principles of SMART campaign

  Focus on agricultural entities with at least one organic or Fairtrade certification (93% in FEFISOL I). TA will support more than 50% of agricultural investees to i.e. provide them certifications, improve their practice and access premium markets.