IFC and BNI Madagascar Partner to Boost Financing for Small Businesses, Focus on Women Entrepreneurs

Antananarivo, Madagascar – IFC, a member of the World Bank Group, and BNI Madagascar, one of the country’s largest financial service providers, have announced a $30 million equivalent loan in Malagasy Ariary to expand access to local currency financing for micro-, small-, and medium-sized enterprises (MSMEs), including women-led businesses. The partnership aims to address Madagascar’s significant financing gap for smaller businesses, estimated at 24 percent of GDP, and support economic growth and job creation.

The loan will be channeled through BNI Madagascar’s dedicated MSME department and its KRED brand, with at least 30 percent of the funds earmarked for women-led enterprises. Women own 37 percent of MSMEs in Madagascar but face a disproportionate share of the financing gap, accounting for 44 percent of the total unmet demand for credit.

Alexandre Mey, CEO of BNI Madagascar, emphasized the transformative potential of the partnership: “The local currency loan from IFC will enable BNI to foster the growth of local businesses and support financial inclusion as a key finance provider in Madagascar. With its dedicated MSME department and KRED brand, BNI Madagascar will significantly improve access to finance for its clients, including women entrepreneurs.”

The financing gap for MSMEs in Madagascar is notably higher than the sub-Saharan Africa average of 19 percent, underscoring the urgent need for targeted interventions. IFC’s investment, supported by the International Development Agency Private Sector Window (IDA PSW) Blended Finance Facility and the IDA PSW Local Currency Facility, aims to bridge this gap. The IDA PSW Blended Finance Facility will provide a pooled first loss guarantee for the investment, reducing risk and enabling greater outreach to underserved businesses.

Mehita Fanny, IFC’s Country Manager for Madagascar, highlighted the broader economic impact of the initiative: “IFC’s partnership with BNI Madagascar is supporting access to finance for businesses across the country, helping create jobs and strengthening economic activity. IFC’s investment, with a focus on women entrepreneurs, will help thousands more businesses and entrepreneurs to access the local currency capital they need to grow.”

The loan is part of IFC’s MSME Finance Base of the Pyramid (BOP) Platform, which supports lending to small businesses in emerging markets recovering from the COVID-19 pandemic and related economic challenges. By providing local currency financing, the initiative mitigates foreign exchange risks for borrowers, making it easier for businesses to plan and invest for the long term.

This partnership reflects a growing recognition of the critical role MSMEs play in driving economic growth and reducing poverty in Madagascar. By prioritizing women-led businesses, the initiative also addresses gender disparities in access to finance, unlocking opportunities for a segment of the population that has historically faced barriers to economic participation.