Microfinance Solidaire
- Country
- Multiple
- Technology
- N/A
- Business model
- Fund
EDFI AgriFI committed EUR 2 million to support the fund Microfinance Solidaire and impact 10 000 farmers, women in particular, by 2025.
Investment Name: Microfinance Solidaire
Contract date: September 2021
Region: Multi countries
Sector: Social microfinance
Total AgriFI Financing: EUR 2,000,000
Environmental and Social Category: FI C
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Project overview:
Microfinance Solidaire SAS, a French company working in close collaboration with the NGO ‘Entrepreneurs du Monde’ finances and grows social microfinance institutions and social businesses in fragile regions (53% of its portfolio) and is mainly befitting women (85% of the final beneficiaries).
Microfinance Solidaire SAS is run as an independent profit-making enterprise and has not recorded a deficit exercise in its more than 10 years of existence, demonstrating its ability to implement strong social missions in an economic sustainable way.
Its outstanding portfolio reached in 2020 an historically high level of more than EUR 9,5 million and 25% of it is already for agricultural activities for small end-beneficiaries.In the current COVID-19 context, Microfinance Solidaire is faced with difficulties in obtaining funding to continue its role at a time when vulnerable communities require support more than ever, including support towards sustainable agriculture to fight climate change.
Funding objective and impact:
AgriFI will support the growth of Microfinance Solidaire with long term means to contribute to leverage funding from other investors.
AgriFI will specifically earmark its funding to increase the volume of microloans offered by its MFI clients/partners towards sustainable agriculture activities through an additional amount of 2 million EUR by 2025.
AgriFI will measure this impact on final beneficiaries, with a target of at least 10.000 additional beneficiaries by 2025, namely small farmers.
Why AgriFI wants to fund this project:
By providing long-term funding, AgriFI’s key aim is to support further expansion of a proven social business model and to improve its economic sustainability.
Supporting Microfinance Solidaire will enable AgriFI to accompany fragile communities that AgriFI could not reach directly, on their path from subsistence farming to an income generating and sustainable agriculture.
Social and economic impact:
Through its funding AgriFI aims to finance 10.000 additional beneficiaries to lead their sustainable agricultural activities by 2025, most of them women (aligned with EDFI AgriFI commitment on the 2X Challenge).
Website: https://microfinance-solidaire.com/