The project sponsor is the BOA Group, which is also the single largest shareholder of BOA Tanzania. The BOA Group is a pan-African financial services group established in 1982 with the aim of supporting the expansion of financial services in the West African region and beyond. Since then, the group has established a unique foothold across Africa, with a presence in 11 Sub-Saharan African countries, including key markets such as Mali, Benin, Burkina Faso, Côte d'Ivoire, Niger, Senegal, Kenya, Uganda, Tanzania, Madagascar and Burundi. BOA Group owns and controls 38.4% of BOA Tanzania. The rest of the shareholding is held by Aureos East Africa Fund (19.70%); BIO - Belgian Investment Company for Developing Countries (23.40%); Tanzania Development Finance Ltd (10.30%) FMO – Netherlands Development Finance Co (2.70%) and other local shareholder (5.50%). BOA Group’s 38.40 % shareholding in BOA Tanzania is held through several entities as depicted below; BoA Kenya: 34.70% Africa Financial Holdings Océan Indien: 3.70%

The proposed IFC Investment comprises of an 8 year subordinated tier II qualifying loan of up to $4.5 million, with a 5 year grace period for principal. In addition, IFC will provide advisory services to the bank under its AMSME Finance Program

200.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	200.0
Equity

* These investment figures are indicative

The proposed IFC investment will be located in Tanzania. BOA Tanzania is headquartered in Dar es Salaam, Tanzania and currently has about 12 branches spread across Tanzania.

SME Lending Expansion: The project is expected to enhance BOA Kenya’s focus on SME lending and strengthen its capacity to adequately serve this segment of the banking market. The project will also enable the Bank to offer wider financing options to Kenyan SMEs, and hence encourage expansion of SME lending to this underserved yet key segment of the Kenyan economy. Such financing will be crucial for the sustainable development of the private sector across the country that results in improved economic development and poverty reduction. Demonstration Effect: The project will have a demonstration effect for other banks to diversify into the SME segment. In addition, BOA Kenya will have to comply with IFC’s environmental and social management standards. Compliance with these standards will improve the Bank’s environmental and social profile and create a demonstration effect for other banks.

The proposed IFC Investment is expected to strengthen BOA Tanzania's capacity to grow and expand across the region, enabling it to compete effectively within the regional financial system and enhance access to finance. Through the Advisory Services program, IFC will support the Bank's efforts to expand its lending activities in the SME sector, and help build its capacity to serve the sector profitably.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the FI portfolio for types of transactions, size, tenor and industry sectors and determined as the Applicable Performance Requirements the IFC FI Exclusion List, the applicable National Social and Environmental Laws and Regulations and the IFC Performance Standards. IFC also appraised the FI’s labor practices and reviewed the Bank’s existing Social & Environmental Management System (SEMS), and FI capacity to implement the same. Based on the Applicable Performance Requirements and SEMS and capacity review, the project will be required to (I) Revise its existing Social & Environmental Management System (SEMS) and guidelines for its implementation, prior to disbursement to the satisfaction of IFC, (ii) Identify responsible, qualified persons to manage and implement the SEMS, (iii) Commit to implement the SEMS, to ensure that its activities are in compliance with the Applicable Performance Requirements, (iv) Submit a periodic report to IFC as per a format to be provided by IFC, and (v) Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions.