Establishment of a microfinance bank in the DR Congo (trust funds)

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Micro, small and medium-sized enterprises (MSMEs) rarely receive loans from commercial banks. Private households rarely have access to financial services (e.g. loans and savings products). The holistic sector approach with a focus on microfinance in the Democratic Republic of Congo (DRC) aims to improve the sustainable supply of needs-based financial services and access to these. The target group of the measures is primarily MSMEs and the Congolese population. In recent years, the commitment of financial cooperation has been designed in such a way that the individual measures interlink at several levels. Specifically, two micro-banks were founded, an established microfinance institution was refinanced with long-term debt capital and a fund was set up which professionalizes selected financial institutions through accompanying measures and provides them with long-term refinancing capital. This project is being implemented in collaboration with the African Development Bank AfDB and enables rural and urban MSMEs and private households to gain sustainable access to financial products and to make the necessary investments to operate economically. Since MSMEs are often labor-intensive, positive effects can be expected for the households of the entrepreneurs themselves, but also for their employees and their families. In addition, access to needs-based financial products increases the scope for action of the target group to be able to respond to exceptional pressures. The project thus contributes to the global goals for sustainable development of Agenda 2030, such as No. 1 No poverty, No. 5 Gender equality, No. 8 Decent work and economic growth, No. 10 Reduced inequalities and No. 17 Partnerships to achieve the goals.