Microfinance Solidaire was created in 2010 by the NGO Entrepreneurs du Monde to meet the financing needs of the social enterprises it incubates. Today, it supports some twenty microfinance institutions (MFIs) and social enterprises working to provide access to energy in sub-Saharan Africa, Asia and Haiti, mostly in fragile countries suffering from low financial inclusion and a limited access to energy.
The €2 million credit line granted by Proparco will support the development of Microfinance Solidaire's lending activity. This is the second credit line provided by AFD Group to Microfinance Solidaire after a first loan granted by AFD in 2016.
A project with strong economic, social and environmental impacts
The main impact of the project will be to improve the financial inclusion of vulnerable populations by guaranteeing them access to social microfinance services. Improved access to energy will also reduce the use of dangerous, expensive and polluting fuels.
This operation illustrates Proparco's strong commitment to supporting the private sector in fragile countries, notably through financial inclusion which benefits both the formal and informal sectors. As a majority of the entrepreneurs financed are women, this project will also contribute to Proparco's objective of promoting gender equality.
This project will thus contribute to Sustainable Development Goals 1 (End poverty), 5 (Gender equality), 7 (Affordable and clean energy), 8 (Decent work and economic growth) and 10 (Reduce inequality).