The project sponsors are five industrialists/entrepreneurs each holding 20% of the Exim Bank Limited (Exim Bank, or the bank): - Mr. Yogesh M. Manek, the principal promoter and Executive Chairman of the Mac Group Ltd., a premier business house in Tanzania with interests in manufacturing, trading, marketing, distribution, mining, banking, oil marketing, chemicals and fertilizers; - Mr. Hanif Jaffer, a young entrepreneur and a qualified CPA in Dar es Salaam has over 18 years of experience in accounting, tax, auditing, information systems and financial analysis and is the Resident Director of the Bank; - Mr.Shaffin Jamal, the Chairman of Union Trust Investments and the Alliance Insurance Group. He is also the Chairman of Aga Khan Economic Planning Board, Tanzania; - Azim Virjee, a prominent business man in Nairobi having various business interests. He was a partner in PKF (Pannell Kerr Forster) up to 2005. He is currently the Chairman of the Aga Khan Health Services in Kenya; and - Azim Kassam, the treasurer of Parkington’s treasury operations in London. Parkington is a group of interrelated private companies with a turnover of about $200 million per annum.

The total project cost and proposed IFC investment is $5 million. IFC will provide a $5 million A-Loan.

5.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.0
Equity

* These investment figures are indicative

Exim Bank is located in Dar es Salaam, Tanzania.

IFC finance is expected to help Exim to expand term lending to SMEs, a vastly underserved sector in the country. The Bank’s local currency ROIC and EROIC are expected to exceed the Bank’s WACC by 4.0% and 5.1%, respectively, over the life of the project (2006-2012). IFC’s investment will permit the Bank to extend finance of up to $5 million to at least 100 new women owned SME projects by end December 2007 assuming an average loan size of $50,000.

This investment will be integrated with a Technical Assistance program from IFC’s Gender Entrepreneurship Markets unit. IFC GEM will help Exim Bank to establish a women’s program with a focus on two distinct segments; in order to generate low cost deposits and to encourage a culture of savings, GEM will work with Exim Bank to develop and roll out a combined savings and credit product for entrepreneurs at the higher end of the micro level. At the SME level, the technical assistance will centre on business skills training and capacity building for women entrepreneurs while at the same time developing capacity within the bank to better deliver to the segment.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the FI portfolio, and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Requirements, are expected to include a combination of:

- The IFC Microfinance Exclusion List(s); and
- The applicable National Social and Environmental Laws and regulations and

IFC will also review, if required, the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.

Based on the review, the project will be required to:

- Develop a Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities are in compliance with the Applicable Requirements;
- Commit to take action to remedy any gaps in SEMS implementation on an ongoing basis;
- Submit a periodic report to IFC as per a format to be provided by IFC.