Investment Approach

REGMIFA is a debt fund which focuses on refinancing regulated and non-regulated microfinance institutions, local commercial banks and other financial institutions (each a Partner Lending Institution or PLI), which are established in Sub-Saharan African countries and serve micro, small and medium enterprises (MSMEs). It provides its PLIs with longer term senior loans, subordinated debt, term deposits and guarantee schemes, the majority of which is delivered in local currency.

MSMEs form the backbone of every economy: they are the engines of growth and income generation.  A lack of financial resources constrains African MSMEs from realizing their full potential. Removing these obstacles and unlocking the potential of local capital markets to benefit MSMEs is a priority for REGMIFA donors and other investors. The Fund aims at building a balanced portfolio, with small and medium‐sized PLIs comprising the majority of the Fund’s client mix over time. Small PLIs are those with total assets below USD 10 million, medium PLIs have total assets between USD 10 and 30 million, and large PLIs have total assets in excess of USD 30 million.

REGMIFA's unique capital structure embodies the principle of public-private partnership by leveraging public funds as a risk cushion to attract significant private sector capital to Sub-Saharan Africa.