Sumac Microfinance gets Sh100 million boost in battle for bigger share of MSME market
News
By
Standard Reporter
| Sep 01, 2015
NAIROBI: Sumac Microfinance Bank has received a Sh100 million cash injection from the Regional MSME Investment Fund for Sub-Saharan Africa (Regmifa), which will boost its efforts to battle for a bigger share of the micro-credit market.
Sumac Bank Managing Director John Njihia said the funds would be used to shore up the bank’s working capital and for lending to micro, small and medium enterprises (MSMEs).
“We want to aggressively penetrate the market, and the funds from Regmifa will help us lend to more customers,” he said.
He added that the Regmifa board approved the funding after under it carried out due diligence on the bank, which is one of the deposit-taking microfinance (DTM) banks licensed and regulated by the Central Bank of Kenya.
“Regmifa was impressed by our business model and growth strategies that are geared towards financing the growth of MSMEs, which are critical in economic growth and job creation,” said Mr Njihia.
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The funding will enable Sumac offer loans to MSMEs at competitive interest rates, something it hopes will help position it in the market as a leading micro-lender.
Regmifa was developed and established in 2010 by the German Development Bank in collaboration with several other development finance institutions and donors.
The idea to establish the fund was mooted in 2007 at the G8 Summit in Heiligendamm, Germany. Symbiotics SA, an asset management company based in Switzerland, is in charge of the fund’s management.
Regmifa aims to foster economic growth, employment creation, income generation and poverty alleviation in sub-Saharan Africa. It provides financing to partner lending institutions that serve the MSME market, and offers technical assistance to increase their developmental impact.