PIIF Samoa Venture Capital Facility

completed

The Samoa VCF will be established to help meet the financing requirements of small and medium size enterprises (SMEs) in Samoa. The need for such a facility was confirmed following a major study, commissioned by IFC, into the financing needs of Pacific Island companies. SMEs make up most of the economic base of the private formal sector of Samoa and they are the engine of growth for Samoa''s economic development. The Samoan government recognises the importance of private sector development and has implemented policies to create a conducive economic environment. The IFC-managed South Pacific Project Facility has been instrumental in determining the scope of the fund and in attracting potential investors.Through this project, IFC will play a lead role in helping to close the substantial financing gap in the market for equity or quasi-equity funding for the large number of undercapitalised businesses in Samoa. The Samoa VCF will help relieve the funding constraint on the ability of the Samoan business community to generate growth in the economy, particularly in potential growth sectors such as fishing, tourism, food processing and manufacturing. This project will have a positive impact in terms of transferring investment and fund management skills to Samoa.Please note that this project can be approved by IFC management under delegated authority. Therefore it will not be sent to IFC''s Board. To comply with our disclosure policy, approval under delegated authority would not take place before July 6, 2001.