World Bank to provide $8 million loan to Baobab units to expand women-led financing in DRC, Mali

World Bank Group, through its private sector arm, International Finance Corporation (IFC), is preparing to deploy up to $8 million in financing to two subsidiaries of Baobab Group, expanding access to credit for micro, small and medium-sized enterprises (MSMEs) and women-led businesses in West and Central Africa.

The proposed three-year facility, with a one-year grace period, pending board approvals in June 2026, includes a $5 million senior unsecured loan to IMF Microcred RDC SA in the Democratic Republic of Congo and a $3 million equivalent local-currency facility to Baobab Mali in Mali.

Expanding financial inclusion

The funding will be on-lent exclusively to MSMEs, with at least 25% earmarked for women-led or women-owned businesses, and another 25% targeted at climate-related financing initiatives, on a best-efforts basis.

The move highlights IFC’s continued push to deepen financial inclusion across underserved African markets, where access to formal credit remains limited, particularly for small businesses and female entrepreneurs.

Both facilities will have a tenor of about three years, including a one-year grace period on principal repayment, helping the institutions extend longer-term financing to their clients.

Blended finance to de-risk lending

The projects are expected to be supported under IFC’s MSME Finance Platform, backed by up to $40 million in guarantees from the IDA Private Sector Window’s Blended Finance Facility.

This concessional structure is designed to offset risks in fragile and conflict-affected markets such as the DRC and Mali, where commercial funding is scarce and often short-term.

IFC’s involvement is expected to help extend funding tenors, strengthen balance sheets, and improve asset-liability management for the Baobab entities, allowing them to scale lending to smaller businesses.

Driving impact in fragile markets

Beyond capital deployment, the investments aim to narrow the financing gap for MSMEs and women-led enterprises while supporting competition in the microfinance sector through demonstration effects.

In markets like the DRC, where capital markets remain underdeveloped, IFC’s role is seen as critical in anchoring longer-term funding and enabling institutions to build sustainable lending track records.

The projects are currently classified as medium environmental and social risk (FI-2), with safeguards in place to ensure responsible lending practices, including adherence to IFC performance standards and exclusion lists.

Strengthening Baobab’s regional footprint

Baobab DRC, formerly Oxus DRC, is one of the largest microfinance institutions in the country, with a loan book of approximately $64.3 million and total assets of about $71 million as of December 2025. The lender operates across key urban and peri-urban areas, including Kinshasa, focusing on underserved MSMEs.

In Mali, Baobab Mali has been active since 2013 and operates under the regulatory oversight of the Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO), supporting small businesses in one of West Africa’s most challenging credit environments.

Both entities are controlled by Baobab SAS, the French-domiciled holding company of the group, which Beltone Capital fully owns.