FINCA Malawi

Debt : November 2019


FINCA Malawi is a licensed deposit taking financial institution serving more than 70,000 clients through a network of 23 branches and 63 banking agents, as well as an expanding mobile channel.

Amount

€ 1,310,040.00

Type of investment

Debt

Development impacts

  • Local economic growth
  • Private sector consolidation/innovation
  • Financial inclusion

Beneficiary locations

Sub-Saharan Africa: Malawi

Investment field

Financial Institutions

Activity

Microfinance

Organisation

FINCA Malawi

Domicile

Malawi

Headquartered in Blantyre, offers individual loans, savings and insurance products specifically designed for the local market. In 2018, FINCA Malawi expanded its digital footprint with the launch of FINCA Mobile, a service that allows clients to access their accounts, transfer funds, pay bills and purchase mobile airtime. Today, agent and mobile banking account for most of its transactions.

FINCA Malawi

We share a mutual commitment to making a positive social impact through sound business practices in the places we work around the world

Roman Hingorani, CFO FIF

FINCA Malawi is a microfinance subsidiary of FINCA Impact Finance, a global network of 20 microfinance institutions and banks that provides socially-responsible financial services and enables low-income individuals and communities to invest in their future.

Development impacts

  • Local economic growth

    Main goal of the institution and of BIO's funding. Future strategic focus is on loans from 1,000-20,000 USD
    SMEs and Micro enterprises are a core client segment (respectively 0.3% and 99% of client numbers, and 16% and 83% of portfolio). Loan size range from ~13,000-200,000 USD for SMEs to ~110-1,400 USD (for groups) and 270-13,000 USD (individual loans) for micro-enterprises.

    Mobile savings are now an essential focus element of the MFI's strategy, with ~36,500 voluntary savings accounts, 3.9 mn USD client deposits

  • Private sector consolidation/innovation

    Substantial market structuring effects are likely from the current digitalization program

    FINCA is the only large sustainable MFI in the market, with the most ambitious digitalization program and with the largest rural outreach

    BIOs investment supports the institution at a crucial point of time for its product development, with branchless channels such as agent services and mobile transfers, savings, and loans under development. There are competitors experimenting with digital solutions but FINCA's full-fledged digital products and service offer for the underbanked would be new for Malawi

    One current major development is improving services for underserved SMEs as a result of the branchless access to the accounts. Also, FINCA Malawi has an unprecedented rural footprint making its products and services available to rural and low-income populations that are highly underserved

    The increasing digitalization of FINCA and of banks leads to a more fluid line between the banking and MFI sectors and increases competition. FINCA is likely to expand its market share compared to the banking industry

  • Financial inclusion

    FINCA Malawi has a strong rural outreach, wide-spread throughout Malawi. It offers most of its services even in the rural areas, and in some offline branches in the most remote locations offers only credit services (not savings and payments)

View more of our investments in this region

Ethos Mezzanine Partners 3

Investment Companies & Funds

Ethos Mezzanine Partners 3

  8,868,980.00

  Burundi, Ethiopia, Kenya, Malawi, Mozambique, Rwanda, South Africa, Tanzania, Uganda, Zambia

  13/06/2019

  Equity