REGMIFA, the Regional MSME Investment Fund for Sub-Saharan Africa, has attracted a further $10 million from Dutch-based entrepreneurial development bank FMO.

The $177.5 million social bond will bundle loans to innovative companies in capital-scarce regions which operate in the financial inclusion, healthcare and WASH (water, sanitation, hygiene) sectors, and that have a measurable, positive social impact.

Microenterprises and SMEs will benefit from the Social loans to encourage employment creation and business activity in the country.

Even before the COVID-19 crisis, access to finance was the biggest obstacle for doing business in Armenia. Has it increased following the pandemic?

This $7 million financing for the ongoing Institutional Capacity Building Project will help scale-up activities with the Central Bank of Sao Tome and Principe and support system modernizations as part of the COVID-19 mitigation response.

The investment will help reduce traditional banking costs and improve supply chains boosting financial access, productivity and exports.

The proceeds of the Sustainability Bond will be used to finance both Social and Green eligible loans. The Social loans will be granted towards microenterprises and SMEs, stimulating the generation of employment in the country.

The new company offers reference products to impact investors and fund managers, centered around research, impact and investment solutions.

Li told Reuters in an interview that in “traditional finance” investing in SMEs was rarely worthwhile for global institutions as the due diligence was difficult, risks were high and funding amounts small.

The loan aims to help the bank increase lending for climate-friendly projects and to smaller businesses, especially those owned by women.