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Investment in FEFISOL II: supporting the agriculture sector in Africa and the financial inclusion of women

Project

fefisol afrique developpement investissement
SIDI
Signature date
Location
Multi-country Global, Burkina Faso, Côte d'Ivoire, Kenya, Uganda
Financing tool
Equity investment, Technical assistance
Financing amount (Euro)
6000000
Financing details
EUR 5m Equity Investment, EUR 1m Technical assistance
Customer
FEFISOL II
Type of customer
Investment fund
Project number
IZZ1095
Environmental and social ranking
IF-C
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

Through FISEA+, Proparco is investing in FEFISOL II, a fund that provides support in local currency for microfinance, smallholder farms and rural areas in Africa, as well as technical assistance to the beneficiary structures.

Client presentation

FEFISOL II, the successor of FEFISOL, is the new European solidarity financing fund for Africa. FEFISOL II is a debt fund dedicated to Africa, with at least 75% of the capital earmarked for Sub-Saharan Africa and 40% for West Africa. FEFISOL II focuses on financing microfinance institutions specialized in rural areas and smallholder farms that are not served by local banks. 

It is managed by SIDI (Solidarité Internationale pour le Développement et l’Investissement) and Alterfin and contributes to the development of responsible financial and agricultural practices in Africa.

FEFISOL II aims to reach over 100 clients in 12 years, including 65 microfinance institutions and 35 smallholder farms.

Project description

Proparco is investing EUR 5m in FEFISOL II via FISEA+ (AFD Group’s facility implemented by Proparco under the Choose Africa initiative). The fund aims to improve access to financial services in Africa for smallholder farms and microfinance institutions specialized in rural areas, by allocating them financing in local currency in order to avoid exposing them to exchange rate risk. 

FEFISOL II is also deploying a technical assistance program, with a major component on the implementation of E&S best practices. More generally, FEFISOL II aims to promote responsible agriculture for local and regional markets. 

Project impact

The main expected economic and social effects and impacts are: 

  • Support for financing 100 microfinance institutions and farmers (including 90 smallholders),
  • Support for 15,745 jobs,
  • Mobilization of EUR 10m of private finance. 

The project should contribute to SDGs 2 (“End hunger, achieve food security and improved nutrition and promote sustainable agriculture”), 5 (“Gender equality”) and 8 (“Decent work and economic growth”).