Further development of the Microfinance Initiative for Sub-Saharan Africa II (MIFSSA), 10th tranche

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The project is part of the further development of the Microfinance Initiative for Sub-Saharan Africa (MIFSSA II), financed from tranches 8, 9, 10 and 11. The aim of the FC measure is to contribute to expanding the sustainable and efficient range of needs-based financial services for MSMEs in the SSA region. The financial sector fund AfricInvest FIVE (Financial Inclusion Vehicle) is the follow-up fund to AFS of the fund company AfricInvest, which is fully invested and in which KfW has been involved with trust funds since 2013. KfW first invested in FIVE with trust funds in 2018, with capital increases in 2019 and 2021. The German FC is involved in FIVE with a total contribution of EUR 19.35 million, making it the largest shareholder. FIVE is part of MIFSSA and makes a relevant contribution to the program objective by improving MSMEs' access to finance through equity investments in financial institutions and later stage FinTechs. It is a Mauritius-based evergreen fund (term of 99 years) that, as a shareholder, actively shapes the corporate policies of its partner financial institutions in order to improve the financial inclusion of MSMEs. To support the portfolio companies, AfricInvest has also set up a Technical Assistance Facility with an FC grant of EUR 2 million. As of the end of 2023, FIVE had invested around EUR 100 million in banks, insurance companies and FinTechs in 22 African countries and provided around 580,000 customers with access to financial services for the first time through the portfolio companies. Around 27,000 MSMEs have received a credit line. By integrating MSMEs into the financial market, around 40,000 jobs were indirectly created or maintained.