FINCA Malawi
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
Investment field
Financial Institutions
Activity
Microfinance
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.
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
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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
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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
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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)
Read impact and news about this project
News
BIO invests $1.5m in FINCA Malawi for Microfinance, SME Lending
12-08-2020
The Belgian Investment Company for Developing Countries recently
began disbursing funds as part of a four-year loan of USD 1.5 million to
FINCA Malawi, a microfinance institution (MFI) owned by the US-based
firm FINCA Impact Finance.
View more of our investments in this region
Infrastructure
SIMA Commercial & Industrial Solar Green Bond
10,000,000.00
Kenya, Nigeria, South Africa
29/12/2023
Debt
