Supporting financial inclusion and tackling energy poverty in Cambodia, Haiti and Myanmar

Microfinance Solidaire was set up by the NGO Entrepreneurs du Monde in 2010 to meet the financing needs of the social enterprises it incubates. It currently supports some twenty microfinance institutions (MFIs) and social enterprises that work to provide access to energy in Sub-Saharan Africa, Asia and Haiti, mainly in fragile countries suffering from a low level of financial inclusion and considerable energy poverty.

The EUR 2m credit line allocated by Proparco will support the development of the lending activity of Microfinance Solidaire. It is the second credit line provided to Microfinance Solidaire by AFD Group following an initial loan allocated by AFD in 2016.

This project is part of the 2X Challenge initiative. This multi-stakeholder initiative aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services, and increase their participation in the economy. 

This initiative thus contributes to Sustainable Development Goal #5 (Gender Equality).

The technical assistance has enabled MFS to strengthen its procedures for AML/CFT and financial risk management. 

The main expected impacts of this project are as follows:

• On the economic and social front, the project will support financial inclusion by providing some 5,800 people with access to microfinance products by 2025. It will also contribute to reducing energy poverty and providing jobs for local people, with some 2,200 indirect jobs supported by 2025. Finally, as 85% of the clients of the MFIs incubated by MFS are women, the project should contribute to reducing gender inequalities. This means that the operation qualifies for the 2X Challenge initiative. 
• On the climate front, the solutions for access to energy proposed by the companies in the portfolio of MFS should reduce greenhouse gas emissions.

This project will thereby contribute to SDGs n°1 (End poverty), 5 (Gender equality), 7 (Affordable and clean energy), 8 (Decent work and economic growth) and 10 (Reduce inequalities).