Antananarivo, Madagascar, January 09, 2025 – IFC and BNI Madagascar today announced a partnership to expand access to local currency financing for smaller businesses in Madagascar, including women-led businesses, helping them grow and create jobs.
Under the partnership, IFC will provide BNI Madagascar, one of the country’s largest financial service providers, with a $30 million equivalent loan in Malagasy Ariary for on-lending to micro-,small- and medium-sized enterprises (MSMEs), including to informal microentrepreneurs. At least 30 percent of the proceeds of the IFC loan is earmarked for women-led enterprises.
The formal financing gap for MSMEs in Madagascar is estimated at 24 percent of GDP, significantly higher than the sub-Saharan Africa average of 19 percent. The disparity for women-led MSMEs is particularly striking. Although women own an estimated 37 percent of MSMEs in Madagascar, they account for about 44 percent of the country's total MSME finance gap, according to IFC estimates.
“The local currency loan from IFC will enable BNI to foster the growth of local businesses and support financial inclusion as a key finance provider in Madagascar. With its dedicated MSME department and KRED brand, BNI Madagascar will significantly improve access to finance for its clients, including women entrepreneurs.” said Alexandre Mey, CEO of BNI Madagascar.
“IFC’s partnership with BNI Madagascar is supporting access to finance for businesses across the country, helping create jobs and strengthening economic activity,” said Mehita Fanny, IFC's Country Manager for Madagascar. “IFC’s investment, with a focus on women entrepreneurs, will help thousands more businesses and entrepreneurs to access the local currency capital they need to grow.”
IFC’s investment is supported by the International Development Agency Private Sector Window (IDA PSW) Blended Finance Facility, which will provide a pooled first loss guarantee for the investment, and the IDA PSW Local Currency Facility. It will be processed under IFC’s MSME Finance Base of the Pyramid (BOP) Platform that supports lending by financial institutions to help small businesses in emerging markets recover from the COVID-19 pandemic and inter-related struggles.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
Stay Connected with IFC on social media.
About BNI Madagascar
BNI Madagascar, part of Axian and Ciel groups, is one of the leading universal banks in the country. With the largest network composed of 110 branches and 140 ATM, BNI Madagascar is supporting the retail market, mid and large corporates, local financial institutions, as well as MSME via the KRED By BNI Madagascar brand. BNI Madagascar has 105 years of existence and expertise dedicated to its clients with tailor made solutions for access to finance, which supports financial inclusion in Madagascar, as well as digital solutions to support the growth of its clients’ businesses.
For more information, visit our website www.bni.mg
Stay connected with BNI on social media
Contacts
For IFC
For BNI Madagascar
Stay Informed
Sign up to have customizable news & updates sent to you.