The Regional Micro, Small and Medium Enterprises Investment Fund for Sub-Saharan Africa (REGMIFA) has secured a USD 13 million investment from Germany’s development bank KfW, reinforcing momentum behind one of the region’s most established vehicles for financing African entrepreneurs and underserved households.
The new capital injection, made into REGMIFA’s A Shares, strengthens the fund’s mandate to expand financial inclusion, MSME growth and access to basic services across Sub-Saharan Africa at a time when small businesses remain the backbone of African economies but continue to face acute financing constraints.
REGMIFA channels capital to local financial intermediaries, enabling them to extend affordable loans and tailored financial products to micro, small and medium-sized enterprises, as well as low- and middle-income households.
The model directly targets entrepreneurs who are often excluded from traditional banking systems, supporting job creation and sustainable livelihoods in key sectors, including education, agriculture, clean energy, microfinance and SME banking.
“We are delighted to welcome this new investment of our longstanding partner KfW, which highlights the continued confidence in REGMIFA’s impact and performance,” said Laure Wessemius-Chibrac, Chairwoman of the REGMIFA Board.
“The additional capital will allow us to extend financing to more local financial institutions, ultimately empowering thousands of small businesses that are vital to Africa’s economic resilience.”
A Long-Standing Development Partnership
KfW’s latest commitment builds on a partnership that dates back to REGMIFA’s establishment in 2010, when the German development bank was already involved through trust funds from the German Federal Ministry for Economic Cooperation and Development (BMZ).
“With the new investment of USD 13 million from KfW’s own funds, we want to underline and continue our long-standing support for REGMIFA,” said Stephanie Lindemann-Kohrs, Director Global Equity and Funds of KfW.
“Since its establishment in 2010… REGMIFA has proven itself as a partner for promoting MSMEs and combating poverty in Sub-Saharan Africa.”
The investment underscores KfW’s role in mobilising long-term capital for inclusive private sector development, while reinforcing REGMIFA’s track record in responsible finance, women entrepreneurship and economic resilience.
Scaling Capital Where It Matters Most
Since its inception, REGMIFA has emerged as one of the region’s most significant impact investment platforms focused on MSMEs. The fund has mobilised more than USD 700 million in public and private capital, providing financing to local financial institutions in 27 African countries.
Through these intermediaries, REGMIFA has reached more than 2 million entrepreneurs and households, directly addressing the structural financing gap facing African small businesses.
The fund is managed by Symbiotics Asset Management, a global impact investment firm with deep exposure to emerging and frontier markets. Symbiotics has originated over 8,200 investments worth more than USD 10.5 billion across 99 countries since 2005 and manages a USD 2.5 billion portfolio spanning 19 funds and mandates.
Its portfolio companies have also benefited from over USD 19 million in technical assistance, strengthening institutional capacity alongside capital deployment.
Financing Africa’s Entrepreneurial Backbone
MSMEs account for the majority of employment in Sub-Saharan Africa, yet access to finance remains one of their most persistent barriers to growth.
By strengthening local lenders rather than bypassing them, REGMIFA’s approach embeds capital within domestic financial systems helping ensure scale, sustainability and long-term impact.
The latest KfW investment signals continued international confidence in African entrepreneurship as a driver of economic stability, poverty reduction, and innovation.
As global development finance increasingly prioritises blended capital and impact-led strategies, REGMIFA’s expanding balance sheet positions it to play an even larger role in financing Africa’s next generation of entrepreneur one local institution and one small business, at a time.
