Contracts CD 2024

Palestine for Credit and Development (Faten) – $250,000 Development Contribution

Working closely with other financiers including EBRD, Triple Jump and US Government-financed consultants, FMO provided Palestine for Credit and Development (Faten) with an emergency grant to support a three-month interest moratorium for MSMEs, following a directive from the Palestinian Monetary Authority. The project assisted 409 businesses, helping stabilize and even increase employment, with jobs rising from 714 at the baseline to 773 at closure, while no bankruptcies were reported. Women-led businesses accounted for 27% of beneficiaries, and 27 businesses operated in refugee settlements. The support extended across Jenin, Nablus, Quds, Ramallah, and Tulkarem, covering sectors like agriculture, tourism, handicrafts, and services. This grant played a crucial role in mitigating the adverse effects of political turmoil on Palestinian MSMEs.

Dvara KGFS Ltd - €8,230 Technical assistance

FMO mobilized a consulting team from Microfinanza Rating SRL to support Dvara KGFS in the adherence to Client Protection Principles and ensure adoption through the obtention of the CERISE+SPTF certification. Dvara obtained the gold recognition, the highest level of achievement, which means that Dvara currently meets the most rigorous standards of client protection.

SAFCO Microfinance Company (Private) Limited - €39,872 Technical Assistance

Via support of DAI Global UK, this project contributes to expanding SAFCO’s operations in both rural and urban regions in Pakistan, specifically from Sindh’s 13 districts to Punjab, Pakistan’s largest province population-wise. Specific measures, focused on digital transformation and robust cybersecurity, are critical enablers for SAFCO to scale its services and introduce new market responsive products and offerings.

FPM SA - $2,000,000 Repayable Development Contribution

The funding objective is to increase financial inclusion in the Democratic Republic of Congo, a frontier market with only 6-7% of the adult population having a bank account, by providing access to finance to MSME’s via local financial institutions that have reach in remote and rural areas. FPM plays a vital role in financial inclusion, particularly by expanding access to financial services for MSME's including in the remote areas of the DRC, where banks and larger SME financing institutions are often absent. Its strong relationships with international donors and investors uniquely position it to provide essential support to local MFIs and SACCOs that face challenges in accessing affordable capital directly.

Banco de Antigua S.A. - €150,099 Technical Assistance

With support of ACCION International, this project will support Banco de Antigua S.A. in working towards fulfilling two of its strategic goals: Process robotisation, specifically automating the credit analysis process, and enabling a cloud-based data warehouse. Both goals increase the efficiency of the company and improve customer service

Watu Credit Limited - €30,000 Development Contribution

The project will support Watu to develop a well-structured job grading system that is tied to the compensation and benefits framework for employees and the tax implications for the new system across Watu's geographical footprint. The project is expected to support the professionalisation of Watu’s activities whilst contributing to its growth.

Cooperative Bank of Oromia S.C. - €67,425 Technical Assistance

This project, carried out by the Frankfurt School of Finance and Management, will benefit Coop through the performance of a comprehensive assessment of the root causes of non-compliance in its credit operations, risk management, and KYC processes. This assessment will guide the creation of an action plan, which Coop’s team will implement to ensure effective implementation of their existing policies.

Stichting Impact-Linked Fund - $500,000 Development Contribution

This program pilots an impact incentive mechanism that couples impact linked finance and technical assistance, and is designed to increase financial inclusion of women by fintech companies. This objective strongly supports the finding from the Massif 2021 evidence study that highlighted that little is known about the ability of fintech interventions to effectively serve women-owned MSME's and about the role gender earmarked funds can play in catalysing investments in this segment. The findings from this pilot will be instrumental in the evidencing the business case of supporting fintech innovations that include an earmarked gender angle, as well as deployment of incentive-based innovative finance products to stimulate investments in strategic themes and sectors.

IMF Baobab RDC S.A. - €24,040 Technical Assistance

The project consists of a complete assessment of the customer's policies and practices regarding Client Protection, allowing IMF Baobab RDC to identify areas of opportunity and develop an action plan to bridge the gaps in their operations. IMF Baobab RDC is a prospective FMO client.

Accion Venture Lab, L.P. - $100,000 Partnership Development Contribution

This project supports Accion Venture Labs to organize another edition of the CEO Forum and Fintech for Inclusion Summit. The event is a unique platform for fintech startups, investors, funders, financial intermediaries, and changemakers focused on leveraging technology to advance financial inclusion.

Lendable MSME Fintech Credit Fund II - €16,350 Technical Assistance

The objective of the project, carried out by Microfinanza Rating SRL, is to perform a complete assessment of the customer's policies and practices regarding Client Protection, allowing it to identify areas of opportunity and develop an action plan to bridge the gaps in their operations.

Asia Clean Energy Partners Limited. - $123,100 Technical Assitance

The project "Study: Gender-responsive transition finance for MSMEs" aims to promote gender-responsive transition finance for Micro, Small, and Medium Enterprises (MSMEs) in India and Vietnam. The main activity involves assessing the current landscape of transition finance and developing a practical guide for financial institutions to provide gender-responsive transition finance to MSMEs, thereby supporting sustainable and inclusive economic growth.

Impact Investing Ghana LBG - €150,000 Partnership Development Contribution

Impact Investing Ghana (IIGh) is a local private sector led initiative convening all necessary stakeholders to catalyse impact investing in Ghana and across West Africa. IIGh works across the financial services sector and with all asset classes to increase the quality and volume of impact investing and to build the financial ecosystem in Ghana and West Africa. This FMO project follows on the initial project that IIGh started as part of the FMO Ventures Program (FVP), the entrepreneurial ecosystem building component of the FVP TA-Facility with the objective of supporting more local entities in prioritized markets.

Sanasa Development Bank PLC - €64,025 Technical Assistance

The main objective of the "Customer profiling and value chain financing with a gender lens" project, carried out by 'Value for Women' is to ensure that Sanasa Development Bank (SDB Bank) does not leave women customers behind in their new segment focus and service offering. This project aims to support SDB Bank in increasing the number of women customers reached, the percentage of women customers represented in the portfolio, and the average deposit and loan size of women customers compared to men.

SANASA Development Bank PLC - €183,908 Development Contribution

The main objective of the Strategic Transformation project is to assist SANASA Development Bank PLC (SDB) in expanding its reach across Sri Lanka by leveraging its ties to the cooperative sector. The project involves designing and implementing strategic initiatives to improve business continuity, strengthen agricultural banking capabilities, and develop customer value propositions. This project enhances financial accessibility for underserved rural communities, thereby fostering economic development, and creating job opportunities in Sri Lanka.

Advans International S.A.S. - €190,000 Technical Assistance

The Climate Risk Pilot Advans Pilot project aims to enhance climate resilience in Ghana by supporting Advans International S.A.S. in revising or adopting new climate risk products focused on flood risks and creating emergency response procedures. The project, carried out by Milliman, involves market research, product adaptation, and the development of emergency response procedures to help Advans' clients manage climate risks effectively. By integrating these solutions into their business model, Advans aims to support their clients in maintaining stability and continuity in the face of climate-related challenges.

Milliman Inc. - €145,000 Technical Assistance

The main goal of the Climate Resilience Pilot Program is to enhance the resilience of communities to climate change impacts through targeted interventions and capacity-building activities. The program involves developing and implementing climate adaptation strategies, conducting community training sessions, and establishing monitoring and evaluation frameworks to assess the effectiveness of these interventions. By improving the ability of communities to adapt to climate change, this program helps foster financial inclusion by ensuring that vulnerable populations have the knowledge and resources needed to withstand and recover from climate-related shocks, thereby reducing their economic vulnerability.

Insitor Impact Asia Fund II Pte. Ltd. - $250,000 Development Contribution

The primary goal of the Insitor Delegated Technical Assistance Facility project is to support the portfolio companies of Insitor Impact Asia Fund II in Cambodia, India, and Pakistan by providing external advisory services to reduce their risk profile, improve their likelihood of success, and scale their impact. The primary activities involve optimizing the business model, overseeing core business operations, and enhancing both social and environmental impact.

Fido Solutions Limited - €19,000 Technical Assistance

The project involves an in-depth assessment of Digital Finance Services (DFS) standards and client protection systems across Fido Ghana and Fido Uganda to identify compliance gaps. It includes defining concrete action plans for both Fido Ghana and Fido Uganda to address these gaps and improve their social performance and client protection practices.

Joliba Capital Fund I L.P - €16,638 Technical Assistance

The project "Deepening roots in fertile soil: Solidifying and deepening gender commitments" aims to support Joliba Capital in operationalizing and implementing selected actions from the Gender Action Plan which was developed in Phase I of the project in 2023. The project will be carried out by Value for Women. Activities include developing guidance documents, updating policies, creating scanning and screening tools, and conducting training sessions to embed gender-inclusive practices at both the fund and portfolio levels. By enhancing gender inclusion, the project promotes equitable opportunities and access to resources, ultimately contributing to broader economic participation.

Global Private Capital Association - €105,000 Technical Assistance

The 'GPCA Task Order - Next Gen Partners Program' aims to cultivate the next generation of Private Equity Funds’ leadership by providing targeted support and resources. The main activities include mentorship programs, capacity-building workshops, and networking events designed to foster collaboration and knowledge sharing among partners. By empowering these partners with the necessary skills and connections, this initiative promotes financial inclusion by enabling a diverse range of organizations to participate in and benefit from the financial ecosystem. GPCA supports end-beneficiaries by building fund manager capacity in fragile contexts and emerging economies, providing guidance and information to help fund managers choose investments that benefit both investors and the communities they operate within, and promoting impact investing.

Global Private Capital Association - €10,545 Technical Assistance

The primary objective of the GPC Conference Training 2024 was to provide comprehensive training sessions aimed at enhancing the skills and knowledge of participants in Know Your Customer and Anti Money Laundering practices. The activities included an interactive workshop, and expert-led discussion designed to foster a deeper understanding of KYC and AML practices and their practical applications. This project promotes financial inclusion by equipping participants with essential skills in Know Your Customer (KYC) and Anti-Money Laundering (AML) practices, thereby enhancing their ability to ensure secure and accessible financial services for all.

ASEAN Frontier Markets Fund L.P. (AFMF) - $250,000 Development Contribution

The main objective of the project, carried out by EMIA, is to support SMEs and early-stage companies in Cambodia and Laos by providing scarce equity financing and contributing to the growth of entrepreneurial communities. The main activity involves establishing a Business Improvement Facility (BIF3) that provides financial assistance for AFMF portfolio companies to engage third-party advisors and other relevant service providers to support portfolio companies with Core Business support, Risk Management and Impact creation. This project supports high-growth potential SMEs that face challenges obtaining traditional bank loans due to insufficient collateral or cash flow, thereby promoting financial inclusion.

VisionFund Microfinance Institution S.C. - €8,175 Technical Assistance

The objective of the project is to perform a complete assessment of the customer's policies and practices regarding Client Protection, allowing it to identify areas of opportunity and develop an action plan to bridge the gaps in their operations. The project with MicroFinanza Rating in benefit of VisionFund Ethiopia was not fully implemented as the client decided to cancel the transaction due to differing perspectives with the investment team.