BRAC INTERNATIONAL MICROFINANCE RAISES MORE THAN $30 MILLION TO SUPPORT MILLIONS OF AFRICAN WOMEN OUT OF POVERTY
THE HAGUE, [December 4, 2024] – BRAC International Microfinance (BI MF), the international arm of one of the world’s largest development organisations, BRAC, announces $32 million funding to financially empower millions of women in Africa.
Building on the successful launch of BI MF’s impact notes programme in 2022, this new round of funding, aims to mobilise significant capital to BI MF’s microfinance institutions in Tanzania, Uganda, Liberia, and Sierra Leone, enabling them to expand financial services to rural and hard-to-reach areas within their countries.
BI MF operates microfinance institutions in seven countries outside of Bangladesh, collectively serving more than 870,000 clients, 96% of whom are women. Since the launch of the programme in 2022, BI MF has raised $73 million to support its clients, more than half of whom earn less than $5.50 a day, with access to savings, loans, and financial and digital literacy.
This funding round introduces two new investors, the Belgian Investment Company for Developing Countries (BIO) and Ceniarth, who join existing partners Global Partnerships (GP) and the French Development Finance Institution Proparco, reaffirming their commitment to BRAC’s mission. This achievement reflects BRAC’s ability to attract capital from investors aligned in supporting BRAC’s efforts to scale impact across its geographic footprint.
Bridget Dougherty, Managing Director of BRAC International Holdings B.V., said:
“Africa has the highest share of female enterprises in the world, yet women receive only a fraction of the capital needed to grow their businesses. For nearly two decades, BRAC has been working in Africa, supporting women to strengthen their livelihoods. But the need is far greater. We must continue to mobilise resources to reach the millions of women who are still left behind in accessing responsible financial services. We are pleased to work alongside investors who believe in BRAC’s mission and the potential of women”.
Aligned with its mission of putting “impact first,” BI MF has been measuring client-level outcomes in partnership with 60 Decibels for the last five years.
Results from the 2023 survey highlight the transformative effect of BI MF’s services on clients’ lives: 94% of clients reported improvements in their quality of life and better financial management. Clients cited significant benefits, including the ability to afford their children’s education, pay household bills, and increase income and business investments—underscoring the impact of access to responsible financial services.
François Maudet, Investment Officer Financial Institutions at BIO, said:
“The Belgian Investment Company for Developing Countries (BIO) is proud to join BRAC International Microfinance in its mission to empower women in Africa through access to responsible financial services. BRAC’s strong track record, focus on impact measurement, and commitment to reaching underserved communities aligns perfectly with BIO’s investment strategy. We believe this funding will be instrumental in unlocking the economic potential of millions of women and contribute to a more inclusive and prosperous Africa.”
Diane Isenberg, Ceniarth’s Founder and Managing Director, said:
“As a very active investor in numerous microfinance funds that have on-lent to BRAC in the past, we have been aware of their exemplary approach to generating impact in hard to serve rural communities. As we have been complementing our fund investments with direct loans to the highest performing MFIs, this new round of funding was a great opportunity for us to expand our support for BRAC by investing directly with them.”
Mark Coffey, President, Global Partnerships, said:
“BRAC International Microfinance is a global leader in designing products and services that enable measurable, positive outcomes for women living on dollars a day. BRAC’s client-centered, impact-first approach is evident in its results and the organisation’s commitment to learning positions it for continued growth, innovation, and impact. We are proud to continue partnering with BRAC through this facility and are pleased to see more investors joining us to prioritise the impact BRAC enables in the lives of people living in poverty.”
Jean Guyonnet-Dupérat, Regional Director for East Africa at Proparco said:
“After our first successful previous partnership with BI MF in 2022, we are happy to continue to support them in their mission and help reduce inequalities through better financial inclusion”.
Courageous Capital Advisors, LLC, served as specialist advisor to BRAC.
BRAC is an international development organisation founded in Bangladesh in 1972 that partners with over 100 million people living with inequality and poverty globally to create sustainable opportunities to realise potential.
BRAC has been a pioneer of microfinance since it first started 50 years ago. Today, BRAC International Microfinance operates in seven countries outside of Bangladesh – Myanmar, Tanzania, Uganda, Rwanda, Sierra Leone, Ghana and Liberia.
BI MF’s mission is to provide a range of financial services responsibly to people at the bottom of the pyramid. It particularly focuses on women living in poverty in rural and hard-to-reach areas, to create self employment opportunities, build financial resilience, and harness women’s entrepreneurial spirit by empowering them economically.
BIO is a Development Finance Institution established in 2001 by the Belgian Development Cooperation to support private sector growth in developing countries. BIO provides long-term financing to enterprises, the financial sector, and private infrastructure projects, as well as grants for feasibility studies and technical assistance programmes.
Ceniarth is an impact-first, family office investor focused on funding market-based solutions that benefit underserved communities. Ceniarth invests globally in entities who deliver high positive impact on vulnerable and under-served populations.
Global Partnerships (GP) is an impact-first investment fund manager dedicated to expanding opportunities for people living in poverty. GP and its funds deploy capital to social enterprises that deliver market-based products and services that empower people to earn a living and improve their lives.
Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world. With an international network of 25 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco benefits from sector-based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners. Proparco’s new “Acting together for greater impact” Strategy 2023–2027 enables, strengthens and amplifies the different ways in which it works with its partners. To learn more: http://www.proparco.fr/en/
