Official launch of the new European solidarity financing fund for Africa, FEFISOL II !
SIDI is pleased to announce the launch of the new FEFISOL II fund, dedicated to financing African rural microfinance institutions and African agricultural entities sourcing from small-holder farmers, with a first closing of 22.5 million euros and a technical support envelope of 1 million euros.
The FEFISOL II Fund is designed to respond to the crucial issues of financing vulnerable populations in rural areas in Africa, and more particularly the financing of the agricultural sector.
Financing the agricultural sector is of uttermost importance for food security, employment, resilience in the face of climate change, and for the financial inclusion of women who, although they represent more than half of the agricultural workforce, often do not have the same access to financing as men. Although the agricultural sector makes a major contribution to many African economies, and its growth contributes directly to poverty reduction, it is still financially underserved because it is often perceived as too risky or not profitable enough.
FEFISOL II is structured to financially and technically support locally designed solutions to these challenges. The fund will continue to target agricultural entities that source most of their products from family farming and are committed to sustainable agriculture. It will be managed by Inpulse (a Brussels-based investment manager, subsidiary of SIDI and Crédit Coopératif).
In addition to the two founders of FEFISOL, SIDI and Alterfin, most of the investors present in FEFISOL have renewed their commitment to this new fund. In particular, the private sector subsidiary of the French Development Agency, Proparco, the European Investment Bank, the French social bank Crédit Coopératif and the Italian bank Banca Etica have renewed their commitment. New investors are also joining the initiative: the Belgian investment company for developing countries BIO, the Alternative Swiss Bank (BAS), as well as the NGO SOS Faim Luxembourg.
These commitments will allow the Fund to pursue its social mission and to be even more ambitious in terms of social and environmental performance.
FEFISOL II will be implemented in more than 28 African countries and should eventually support 110 microfinance institutions or agricultural companies and cooperatives sourcing from smallholders, most of which are certified fair trade or organic. The first disbursements will be made in July 2022.
By supporting the implementation of socially and environmentally sustainable practices, FEFISOL II directly aims to improve the living standards of vulnerable populations in rural Africa, reduce inequalities and promote sustainable agricultural development.
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