Missio Invest, a firm that provides technical and financial assistance to social enterprises in Africa, has announced securing US$20 million finance from the U.S. DFC (International Development Finance Corp.) for its Missio Invest Social Impact Fund.
Sources close to this move state that the investment will be used by Missio to support Missio Invest Social Impact Fund’s (MISIF) lending to financial inclusion, agricultural, health and education institutions in Sub-Saharan Africa. Through MISIF, the investment firm offers training, technical assistance and financing to support local jobs, improve food security, and increase climate resilience.
MISIF also enables investees to create stable income sources, which sustains their schools, hospitals, and other institutions, helping serve communities. It provides local financial institutions with investment and assistance to increase offerings to unserved groups.
These fundings help beneficiaries to offer affordable financing and banking services to rural communities, women, youth, among others, whilst ensuring the long-term financial sustainability to local organizations.
Father Andrew Small, CEO, Missio Invest, said that their firm is reaching out to overlooked and underserved communities of entrepreneurs in Africa, of which around 40% are women who are likely the real agents of change that generates economic growth on the continent. Unlike grants, MISIF's loans work as catalytic investments, supporting investees to generate local sources of income to sustain their social service programs.
Father Andrew said that they believe that DFC's anchor investment may help strengthen their impact investing model, and Misso is pleased to have a solid partner to advance its shared goal of developing decent work, reliable income source and care of its home.
Incidentally, the DFC investment joins a pool of mixed capital from catalytic investors that enable investment in microfinance, healthcare and education institutions and in agribusinesses. While, Missio Invest is expected to vend $40 million to around 240 enterprises in the next five years.