BAOBAB FINANCIAL SERVICES (PRIVATE)
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
MicroKing is Zimbabwe's leading microfinance institution. It was founded in 2001 as a subsidiary of Kingdom Bank, with Accion as technical partner and USAID as initial funder. Zimbabwe's banking system does not reach all the people in the country. MicroKing provides financial services to people with limited or no access to finance, such as traders, producers and other small entrepreneurs.
What is our funding objective?
MicroKing will receive a USD 5 million senior loan with a 3 year tenor and will use this funding to provide loans to small enterprises that have a USD income (common in Zimbabwe).
Why do we fund this investment?
Access to finance is a major constraint in Zimbabwe, particularly in the SME market. In financing MicroKind, FMO plays an important role by contributing to confidence and stabilizing the sector. Through this loan, FMO aims to support (i) small enterprises that have no access to finance, (ii) the rebuilding of the country's leading microfinance provider, and (iii) the rebuilding of the sector by providing a sign of confidence as one of the first international financial institutions to re-enter the microfinance sector.
- Region
- Africa
- Country
- Zimbabwe
- Sector
- Financial Institutions
- Effective date
- 9/27/2012
- End date
- 1/3/2020
- Total FMO financing
- USD 2.50 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B