Loan Facility Will Support Lending by FINCA Malawi
FINCA Malawi, FINCA Impact Finance’s (FIF) microfinance subsidiary in Malawi, announced that it has secured a $1.5 million USD loan facility with a four-year tenor from the Belgian Investment Company for Developing Countries (BIO). This loan facility marks the inaugural transaction between FIF and BIO and will be used to provide general on-lending to FINCA Malawi clients.
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Headquartered in Blantyre, FINCA Malawi is a licensed Deposit Taking Microfinance Institution serving more than 70,000 clients through a network of 23 branches and 63 active agents across the country. FINCA Malawi offers individual loans, Payroll loans, group loans, savings and insurance products specifically designed for the local market. In 2018, FINCA Malawi expanded its digital footprint with the launch of FINCA Mobile and FINCA eXpress Agency banking services that allow clients to access their accounts, transfer funds, pay bills and purchase mobile airtime. Today, agency and mobile banking account for most of the transactions done by customers.
“We are excited to enter this new partnership with BIO,” said Roman Hingorani, Chief Financial Officer at FIF. “This loan facility will enable us to expand our product offering across the country while continuing to help Malawians build assets, create jobs and improve their standard of living.”
“At BIO we pride ourselves on investing in challenging markets around the world and we strive to have a positive impact on the local communities where we invest,” said Luuk Zonneveld, Chief Executive Officer of BIO. “BIO’s mission and values are closely aligned with FIF, which made this partnership a natural fit.”
The mission of the Belgian Investment Company for Developing countries (BIO) is to support a strong private sector in developing and emerging countries, and to enable those living in them to gain access to growth and sustainable development within the framework of the Sustainable Development Goals.