Launch of the new European solidarity financing fund for Africa, FEFISOL II, with a first closing of 22.5 million euros and a technical support envelope of 1 million euros.
Following the success of the first FEFISOL fund, which closed in July 2021, its promoters, the social investors SIDI (Solidarité Internationale pour le Développement et l’Investissement) and Alterfin, have structured this new fund dedicated to financing African rural microfinance institutions and agricultural entities sourcing from small-holder farmers in Africa. The European Investment Bank, Proparco via FISEA+ (the AFD Group’s facility implemented by Proparco as part of the Choose Africa initiative), the Belgian investment company BIO, the Alternative Swiss Bank, Crédit Coopératif, Banca Etica and SOS Faim Luxembourg have recently signed up for a stake in the fund.
Managed by Inpulse, FEFISOL II is structured to financially and technically support locally designed solutions to these challenges.
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 Fair Trade or organic certified. The new fund will offer diversified and adapted financial products, in 12 to 15 local currencies in order to avoid exposing partners to exchange rate risk and will implement specific assessment and monitoring tools for agro-ecological performance. Finally, FEFISOL II will propose a new technical assistance facility with a more in-depth scope and upgraded procedures. Its aim will be to support its partners in strengthening their institutions and their resilience to climate change. FEFISOL II is making its first closing at 22.5 million euros, and a technical assistance package of 1 million euros from Proparco via FISEA+ with the final objective of raising 6 million euros. The 2nd closing will be launched in 2023. 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.
👉 Full press release, in English.
👉 Full press release, in French.
