MicroVest, Calvert Foundation Make Their First Direct Microfinance Investment in Africa

MicroVest and Calvert Foundation have announced a debt investment of US$1.5Mln in Sinapi Aba Trust (SAT), a non-profit microfinance institution (MFI) headquartered in Kumasi, Ghana. MicroVest originated, structured and acts as the servicing agent of this syndicated, two-year loan, investing a principal amount of US$1Mln, while Calvert Foundation lent US$500,000. Anthony Fosu, CEO of SAT, noted this loan is the largest received by SAT from international commercial funding sources. "These funds will help us to scale up outreach by providing micro-loans to an additional 50,000 disadvantaged entrepreneurs who otherwise would not have access to financial services", he said.

Sub-Saharan Africa is undoubtedly the poorest region of the world, and yet commercial microfinance has been slow to take root. However, recently MicroVest has spotted several strong, mature institutions that are ready to move beyond subsidized capital. "MicroVest has been interested in investing in Africa for some time now," noted Gil Crawford, MicroVest's CEO. "Ghana presents one of the most favorable sovereign risk profiles in Africa and Sinapi Aba Trust is undoubtedly one of the best microfinance institutions in the region. This combination presented good credit risk to our portfolio of investments." Both MicroVest and Calvert Foundation look forward to building a long-term relationship with SAT and moving deeper into the region.

To read the complete press release, please click here.

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