At a Glance
- DEG commits $20 million to expand MSME financing across Sub-Saharan Africa.
- REGMIFA provides local-currency loans to banks, microfinance, and emerging fintech firms.
- Investment aims to reduce foreign-exchange risks while boosting small business growth.
German development finance institution, Deutsche Investitions- und Entwicklungsgesellschaft (DEG) has committed $20 million to the Regional MSME Investment Fund for Sub-Saharan Africa (REGMIFA), a debt fund aimed at expanding financial access for micro, small, and medium enterprises (MSMEs) across the region.
The fund provides local-currency loans to microfinance institutions, commercial banks, and fintech companies, helping small businesses reduce foreign-exchange risks.
Managed by Symbiotics Asset Management, REGMIFA targets underserved entrepreneurs, promoting economic growth and job creation. DEG’s investment underscores the growing role of development finance in supporting private-sector growth across Africa.
Funding details and impact
DEG’s $20 million commitment will flow to end-borrowers via partner financial institutions, supporting MSMEs that are often excluded from traditional financing channels.
REGMIFA’s loans reduce currency risk, enabling more stable, affordable credit for small enterprises. Switzerland-based Symbiotics Asset Management oversees deployment strategy to ensure investments drive job creation and regional economic activity.
Sector significance and broader trends
By supporting MSMEs, DEG contributes to strengthening Africa’s private sector and fostering long-term economic resilience. The investment highlights a shift among development financiers toward structured debt solutions targeting high-impact sectors in Sub-Saharan Africa.
DEG’s engagement reflects its long-term commitment to private-sector development in Africa, empowering small businesses, mitigating currency risk, and fostering sustainable economic growth.
