PROJECT

Projects

Summary of Investment Information

Project Number

49630

Company Name

VisionFund Microfinance Institution (S.C)

Date SPI Disclosed

Apr 17, 2025

Country

Ethiopia

Region

Africa

Projected Board Date

May 31, 2025

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Sep 14, 2025

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Jun 26, 2025
Signed : Aug 18, 2025
Invested : Sep 12, 2025

Sector

Microfinance and Small Business - Non Commercial Banking

Additional Project Attributes

Blended Finance

Project Description

 The proposed investment under the umbrella of the Base of the Pyramid Two (BOP2) Platform, consists of a three-year senior unsecured deliverable Ethiopian Biir (ETB) loan of up to US$30 million equivalent in local currency (LCY) to Visionfund Microfinance Institution S.C. (the “Borrower”, “VFMFI” or “The MFI”), split as follows: (i) up to US$20 million on IFC own account, and (ii) up to US$10 million syndicated from parallel lenders. The use of proceeds of the IFC loan will be to on-lend to informal businesses and micro-enterprises in Ethiopia particularly women-owned business (at least 40% of the use of proceed) to help preserve and sustain low-income jobs (the “Project”). Subject to approval, the Project will be supported by a pooled first loss guarantee (“PFLG”) of up to US$40 million provided by International Development Association’s Private Sector Window Blended Finance Facility (IDA-PSW BFF) allocated to the BOP Envelope under the MSME Finance Platform, as well as IDA-PSW Local Currency Facility (LCF) in the form of a cross-currency swap.

Associated Advisory Engagement

The investment is expected to be complemented by a technical assistance package which aims to support VFMFI in its strategic business planning including transformation roadmap to a bank and responsible finance.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation