47226 - BOP BMI

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

47226

Company Name

BANQUE MAURITANIENNE DE L'INVESTISSEMENT

Date SPI Disclosed

May 2, 2023

Country

Mauritania

Region

Africa

Projected Board Date

Jun 12, 2023

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Oct 8, 2023

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Jun 15, 2023
Signed : Jun 26, 2023
Invested : Oct 6, 2023

Sector

Commercial Banking - SME Finance

Additional Project Attributes

Blended Finance

Project Description

GTFP ATRI BMI #47111: The proposed project consists of a trade finance facility of up to US$10 million for Banque Mauritanienne de l’Investissement (“BMI” or the “Bank”) with a maturity of up to 9 months. The investment falls under the IFC’s Global Trade Finance Program (“GTFP”) and is booked under the African Trade and Supply Chain Finance Recovery Initiative (“ATRI”) umbrella (the “Project”). The investment will support BMI’s fast-growing trade business (i.e., mainly imports of strategic goods) and is timely since there has not been any GTFP partner bank in Mauritania since 2014.

BOP BMI #47226: The proposed investment to Banque Mauritanienne de l’Investissement (“BMI” or the “Bank”) consists of an up to US$20 million senior loan with a maturity of 3 years, processed under the Base of the Pyramid (“BOP”) program (the “Project”). The Project will support the growth of the Banks’ micro, small, and medium enterprises (MSME) portfolio and will benefit from benefit from a 40% Pooled First Loss Guarantee (PFLG) from IDA-PSW Blended Finance Facility (BFF) and the Global Small and Medium Enterprise Finance Facility (GSMEF) as described in the Blended Finance Section.

Associated Advisory Engagement

The project will be supported by an advisory service package from IFC Advisory Services (“AS”) spanning two main offerings namely Credit Risk Management and Environmental and Social risk management, including a corporate governance component. These AS engagements will help BMI strengthen its credit risk management framework as well as develop an E&S management system, while equally improving overall corporate governance in accordance with IFC’s requirements.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.01
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to MSME (mix of Micro and SME)

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

GTFP ATRI BMI #47111: The Project builds on GTFP's global platform, increasing access to trade finance to emerging markets and developing economies. The Project will provide increased access to trade finance to the Issuing Bank's customers, including both corporates and SMEs. On the market side, the project will further connect the Issuing Bank's cross border connections, increasing Mauritania's integration through both financial and real sector channels. The Project will strengthen BMI’s ability to link more traders to other markets in a country where trade plays a key role in the economy. BOP BMI #47226: The most significant expected project-level outcome for the project is access to finance for MSMEs and women-owned businesses to support economic activity and resilience in the context of a fragile economy. Beyond the project outcome, IFC anticipates that the Project will support resilience amongst finance providers catalyzing investments in the sector by demonstrating the viability of lending to MSMEs and crowding in other sources of international and domestic finance in support of institutions targeting the BOP.

IFC does not anticipate any imminent corporate governance (“CG”) risks to the expected development impacts of the Project. The overall CG risk is deemed Low to IFC. BMI adheres to the regulator’s CG requirements and operates within a defined governance framework and set of policies and procedures. The Bank could benefit from improving its CG practices, especially in light of majority shareholder also being both CEO and a board member.

GTFP ATRI BMI #47111: A non-financial source of additionality includes GTFP's catalytic role as a trusted facilitator among cross border correspondent banks. 1) GTFP's guarantee structure helps to reduce key elements of confirmation risk for banks that provide this essential service for trade finance. 2) The Project taps into GTFP's global financial institution network for trade finance, which, along with IFC's trade finance due diligence expertise, increases the probability of new cross border relationship formation for BMI. 3) IFC provides comfort to the Confirming Banks by mitigating non-commercial non-environmental and social risks, such as country, regulatory, project, or political risks, while adhering to IFC's principle of political neutrality. 4) The Project is expected to help BMI strengthen its trade finance operations while BMI will benefit from IFC's technical expertise in redesigning its trade solutions and marketing materials. BOP BMI #47226: IFC will help with both financial and non-financial additionality through this Project. First, through the US$20 million senior loan facility, IFC will support BMI’s initiatives to grow its MSME portfolio. Furthermore, IFC expects to provide non-financial additionality to BMI in the forms of knowledge and capacity building through an advisory engagement seeking to strengthen the company’s risk management framework and practices.

E&S Category Rationale / Risks and Mitigation

The project will support micro, small and medium enterprises (MSMEs) lending activities and short-term trade finance activities of a new client, BMI in Mauritania. The MSMEs business sectors to be supported by the project mainly include trade, civil engineering, construction, fishing industry, animal productions and food industries which are expected to have potential limited adverse environmental and/or social risks or impacts that are few in number, generally site specific, largely reversible, and can be readily addressed through mitigation measures. The project has been categorized as a Category FI-2 project according to IFC Sustainability Policy. The project will not support coal-related activities, mining and higher risk business activities that may include: a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant occupational health and safety risks. For this investment, BMI is required to screen eligible MSME loans against the IFC Exclusion List and host country environmental and social laws and regulations. The trade finance activities supported by the Project will be required to meet the requirements of the IFC's Exclusion List and other exclusions deemed necessary. In addition, the Bank is required to meet Life and Fire Safety requirements and the requirements of IFC's Performance Standard 2 on Labor and Working Conditions. The project's key E&S risks and impacts of this project derive from the Bank's capacity to identify and manage potential environmental and social risks associated with its lending activities. The key E&S risks are typically related to occupational health and safety and labor and working conditions, waste and wastewater management, pollution prevention among others. The Bank has also a dedicated HR team and established HR policies and manuals. To mitigate the risks inherent to the project, the Bank will be required to appoint an E&S officer, develop, and implement an E&S training plan as well as develop and implement an E&S Management system applicable to its MSME lending activities. The Bank is also required to further enhance the HR procedures with additional provisions including antidiscrimination and equal opportunity provisions as well as develop an anti-harassment policy and a formal internal grievance mechanism. The Bank is required to reinforce its Life and Fire Safety by organizing fire safety training to staff and test drills.

The Bank does not have an E&S officer nor an E&S Management System in place. The Bank is required to appoint an E&S officer and to develop and implement an E&S training for the staff. In addition, the Bank is required to develop and implement an E&S management system to screen eligible MSME loans against the IFC Exclusion List and host country environmental and social laws and regulations.

Contacts

For Inquiries About the Project, Contact

Banque Mauritanienne d'Investissement
Mrs. Bowba Matoug
Head of Finance
(+222) 43 33 60 06
bowba.matoug@bmi.mr
Socogim Tevragh Zeina ZRA 24 BP 30032 Nouakchott,Mauritanie
https://www.bmi.mr/

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Nominate officers	06/20/2023
Develop an E&S training plan	06/20/2023
Implementing the E&S training plan	11/16/2023
Develop an E&S Management System	06/20/2023
Share E&S Management System implementation report	02/14/2024
Enhance HR Manuals and procedures	02/14/2024
Organize Life and Fire safety training and test drills	02/14/2024

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Blended Finance

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

Governance Risk Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Financial Intermediary Sub-Project Disclosure

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer