Fefisol II

Development impacts

• Local economic growth

  The fund mainly supports Tier 2 and Tier 3 microfinance institutions that provide productive loans to microentrepreneurs. This represents the majority of the fund’s investments and aims to improve access to finance, helping microentrepreneurs grow their activity and income. So far, the fund has financed fifteen microfinance institutions, whose portfolios are largely focused on productive lending and have continued to grow over the past year.

  The fund also invests in small and medium-sized enterprises and farmer cooperatives active across the agricultural value chain. These investments represent the remaining share of the fund’s activity and aim to accelerate business growth, support rural job creation, and improve economic opportunities throughout supply chains, with particular attention to job quality. To date, fourteen agricultural enterprises have been financed, employing a mix of permanent and seasonal workers, with employment increasing over the past year.

• Private sector consolidation/innovation

  Supporting a fund managed by highly experienced impact investors, SIDI and Alterfin, who combine strong local presence with deep sector expertise. Building on the legacy of Fefisol I, the fund has a unique impact mandate focused on underserved regions, high‑risk sectors and inclusive businesses. It also directly helps its investees close capacity gaps and adopt good practices through Fefisol’s hands‑on approach and technical assistance facility, which aims to mobilize around EUR 6.9 million and deliver roughly 250 TA projects.

• Financial inclusion

  Enhancing access to credit and essential financial services—mainly productive loans for microentrepreneurs—which reached around two million people in 2023. The majority of these portfolios support income‑generating activities and prioritize smaller MFIs with strong outreach in rural, remote, or agriculture‑focused areas, as well as institutions dedicated to serving and empowering women, who represent over 60% of clients. This approach strengthens financial inclusion, helps reduce poverty, and supports employment creation.

• Food security & rural development

  Targeting mostly rural organizations with an objective to reach a minimum of 55% of rural investment, either agricultural entities or MFIs with at least 50% of their clients residing in rural areas - 70% of FEFISOL II's portfolio at mid-2024.