SME Agribusiness Development in East Africa
The SME Impact Fund (SIF) provides meso-level financing to SMEs in agribusiness in East Africa. SIF provides financing as loans, from USD 65,000 to USD 650,000, with an average loan size of USD 200,000. SIF provides financing for SMEs in local currency, at competitive rates ranging between 18-20% per annum, for a period up to 60 months. Project partners are currently Dutch NGO’s like Hivos and Cordaid, and private investors including MatchMaker Associates (MMA). The local banking partner is National Microfinance Bank (NMB) Bank of Tanzania, which gives SIF strong outreach to cover rural districts in Tanzania. Technical partners include Financial Alliance for Sustainable Trade (FAST), MatchMaker Associates (MMA), and Tanzania Horticultural Association (TAHA) with Business Development Services (BDS) project.
The target fund size could not be reached in the second closing and the fund will be divesting in the coming years. However, through the investments, SIF has reached 19,000 smallholder farmers and supported 2,500 jobs. SIF estimates that it has supported the livelihood of 98,000 beneficiaries through its investments.
Submitting Institution | MatchMaker Fund Management (MMFM) |
Location | Burundi, Kenya, Malawi, Rwanda, Tanzania, Zambia |
Commodity | Miscellaneous |
Total Cost (Target Fund Size) | Euro 10,000,000 |
CFC Financing | USD 520,000 (Equity) |
Co-financing | Balance to be sourced from other consortium partners |
Year of Implementation | 2013 |
SDGs