FPM SA
Status: Approved investmentWhy disclosure?
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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
FPM SA is a non-deposit taking financial intermediary in DRC, regulated by the Central Bank of the Congo (BCC). Its mission is to promote financial inclusion in Congo by offering refinancing facilities and guarantees services to local financial institutions (FIs) serving micro, small and medium-sized enterprises (MSME’s) in Congo.
What is our funding objective?
The funding objective is to increase financial inclusion in DRC, a frontier market with only 6-7% of the adult population having a bank account (roughly 3.9M accounts), one of the lowest penetration rates globally by providing access to finance to MSME’s via local financial institutions that have rural reach (MFI’s & Sacco’s). FPM plays a vital role in financial inclusion, particularly by expanding access to financial services including in the remote areas of the DRC, where banks and larger SME financing institutions are often absent. Its strong relationships with international donors and investors uniquely position it to provide essential support to local MFIs and SACCOs, both within and beyond Kinshasa, that face challenges in accessing affordable capital directly.
Why do we fund this investment?
The funding proposal sits firmly within Massif’s strategy to provide and scale access to finance to MSMEs – through financial intermediaries in least financially penetrated and fragile countries. FMO’s funding to FPM will be earmarked for on-lending to MFI’s, Sacco’s and co-operatives in Congo, who FMO cannot directly lend to today and as a result contribute to inclusive economic development. The funding is especially critical for those financial institutions without a ‘group’ backing. FMO’s strategy emphasizes reducing inequalities and increasing inclusive investments, particularly in LDCs and frontier markets. Funding FPM directly contributes to this by empowering micro-entrepreneurs, improving livelihoods and fostering economic development in Congo. foster the building of local stakeholder relationships and allow us to tailor services that are suitable for that particular market.
What is the Environmental and Social categorization rationale?
n.a
- Website customer/investment
- https://fpm.cd/en/
- Region
- Africa
- Country
- Congo, Democratic Republic of the
- Sector
- Financial Institutions
- Publication date
- 12/12/2024
- Effective date
- 5/12/2024
- Total FMO financing
- USD 2.00 MLN
- Funding
- MASSIF