As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track record of enabling people to employ their skills and improve their quality of life. Every month we provide an overview of our new investments, which can be seen below.
Camimex Group is one of Vietnam’s leading processors and exporters of seafood, primarily shrimps, and a market leader in certified organic shrimp product. The transaction, made up of two facilities of USD 9mln (signed) and USD 6mln in the future – for a total consideration of USD 15mln loan, was generated by SNV, as part of the DFCD Origination Facility, highlighting a successful progression as part of this market creation program. One of the main impacts of the transaction is strengthening of the climate adaptation and resiliency of shrimp farmers and sequestering carbon through increasing mangrove coverage.
Armada Foods is a designated supplier and a longstanding partner of international aid organizations, supplying high protein and affordable staple food products like lentils, bulgur, and chickpeas throughout the Middle East and Africa. Armada Foods has been our client since 2022, and we've helped fund the construction of a state-of-the-art production complex in Mersin, which is an important port city on the Mediterranean coast as well as a logistic hub for the global pulses market. To further support their growth strategy, we’re providing a new round of funding for USD 15 million to assist with their additional capex and working capital needs. It will enable Armada Foods to further grow its contribution to food security in Africa via super cereal production as well as increase job employment in rural Türkiye and generates hard currency via exports. Armada Foods further realizes energy efficiencies through usage of the best available technology in their state-of-the-art production facilities.
Nigeria’s First City Monument Bank (FCMB) signed a USD25 million NASIRA guarantee, enabling FCMB to expand its funding to small agricultural, youth, and women-owned companies. Job creation in Nigeria, home to 220 million people and the largest population in Africa, is critical. The country faces severe economic challenges, including high unemployment and a significant 70% depreciation of its currency over the past year. Providing small loans to typically high-risk groups will enable them to start and expand their businesses, offering a means of income for themselves and their families. In addition to the NASIRA guarantee, FMO supports FCMB with a syndicated loan of USD 60 million. The loan is dedicated to growing the existing FCMB loan portfolio of small and medium-sized entrepreneurs (SMEs).
FMO's new USD 10 million investment marks our fourth investment in the Fund. REGMIFA invests in a large portfolio of smaller FIs - too small for FMO to directly invest in - in Sub-Saharan Africa with mostly local currency financing. In addition, the fund can invest in countries that FMO is currently not operating in, including several Least Developing Countries, filling a financing gap by addressing the unmet demand for local currency financing to MSMEs in Sub-Saharan Africa. REGMIFA was launched in 2010 by KfW in close collaboration with development finance institutions, international financial institutions and donor governments.
JSC Credo Bank is a Georgian bank with a wide regional outreach via more than 80 branches and specialized products serving the needs of Georgian MSME businesses. We are supporting our long-term customer with a USD 37 million loan, further growing its rural, agri, women and youth (M)SME portfolio.
Northern Arc Capital supports inclusive finance for, among others, (M)SMEs, targeting women, rural entrepreneurs, and economically marginalized groups in India. With our funding (USD 75m, in INR equivalent via listed NCDs) FMO will capitalize on Northern Arc’s expertise and platform to allocate capital in an efficient way to NBFCs and MFIs that have limited access to long-term funding.
TBC Leasing is a fully owned subsidiary of TBC Bank, a long-standing FMO client. TBC-L offers a wide range of leasing products to diverse sectors of the Georgian economy. It also caters to different client segments with a main focus on small and medium enterprises (SMEs). FMO provided a EUR 15 million loan to finance youth, agri and women SMEs. TBC-L will use 15 percent of the financing to develop its green lease portfolio, supporting the development of green finance in Georgia.
Mediterra Capital Partners III will pursue the same investment strategy as its predecessors, taking mostly majority stakes in high-growth companies in Turkey’s lower mid-market. The Fund will invest in businesses across three themes: technology driven, consumer driven and export driven firms. The Fund will contribute to enabling access to equity financing, especially in the lower mid-market, in the Istanbul area, as well as the wider Anatolia region, which is more underserved. FMO participates in the Fund’s first close with EUR 20 million.
Credrail’s core product is a software tool that allows banks, microfinance institutions, fintech and insurance companies as well as corporates and small and medium enterprises to automatically reconcile financial and customer data across banks, mobile money, and offline channels. We are supporting Credrails with a USD 2 million equity investment through our Ventures Program, supporting the company in scaling up its operations. Credrails is active in Nigeria and Kenya.
Breega Group launched its first pan-African early-stage venture fund in 2022, and is currently raising for this fund aimed at investing in Seed to Series A technology startups operating in diverse sectors. The fund focuses on (very) early-stage technology startups with high growth potential and assists the startups in the early days of their journey. Through FMO’s EUR 5 million investment, we stimulate seed capital in local ecosystems, create more entrepreneurship opportunities, increase chances of follow-on financing in the market, and contribute to the African VC ecosystem.
LoftyInc Alpha Fund will invest across Africa from Seed(+) – Series A stage and operates out of offices in Nigeria, Egypt and Kenya. The fund intends to focus on early-stage startups building tech-enabled solutions for the everyday economy, with high growth potential. Technology can have a huge transformative impact in Africa, which has a vast untapped source of entrepreneurial energy, but lacks the necessary funding, especially at early stages. The fund will make an important contribution to closing this funding gap and driving entrepreneurship and growth in Africa. As an anchor investor, FMO committed USD 7mln.
