The European Investment Bank, Agence Française de Développement and a broad grouping of development bodies, social investors and microfinance service providers launched FEFISOL, the European Solidarity Financing Fund for Africa. The €15 million FEFISOL fund will provide microfinance funds for poor rural households across Africa and will help finance small scale investment in agricultural activities.

FEFISOL is the Africa’s first specialist rural microfinance fund supporting fair trade and organic small business. It has been launched in order to fund microfinance institutions and producer organisations across the continent in local currency. African microfinance bodies will benefit from a subsidised loan provided by AFD that absorbs foreign exchange loss on local currencies. Dedicated support for fair trade and organic producer organisations will help improve the quality and development of their activities over the long-term, notably by gaining access to new market sectors. SOS Faim and the African Microfinance Institutions Network will assist in this process, along with specialist fair trade organisations based in Africa.

Among the investors, the European Investment Bank will provide €5 millions for FEFISOL to help develop microfinance operations and small holder organisations in rural areas across Africa and improve access to fair trade and organic export markets. The support of private and public investors is crucial in the success of the fund.

In addition, technical assistance will also be provided to help microfinance institutions develop new products, improve business planning and develop legal and human resources capabilities. EIB also supports other initiatives in the world for boosting access to finance for small businesses using microfinance tool. This initiative compliments the REGMIFA rural microfinance fund launch earlier this year and supported by the European Investment Bank and European development finance institutions.