Contribution to the Female Entrepreneurship Fund (FEF)

Context

The launch of the Female Entrepreneurship Fund (FEF) in June 2024 is one of the main results of the Regional Programme for the Promotion of Women's Entrepreneurship, carried out by LuxDev in partnership with the Center of promotion of micro, small and medium entreprises (CENPROMYPE), a regional institution of the Central American Integration System (SICA).

The Ministry of Foreign and European Affairs, Defense, Development Cooperation and Foreign Trade (MFA) has entrusted to LuxDev the management of an investment commitment of EUR 4 million in FEF.

Objectives and vision of change

The strategy of FEF is to contribute to the financial inclusion of women by improving their access to financial services. The FEF invests in mature financial institutions, so that these intermediaries improve the provision of services to women entrepreneurs in the countries of the SICA region.

The FEF is a sub-fund of Investment for Development (IFORD), an investment fund established in Luxembourg. The FEF is managed by BIL Manage Invest S.A., a Luxembourg alternative investment manager, who benefits from the investment advice of Total Impact Capital LLC.

The contribution of LuxDev on behalf of the MFA to the FEF aims at creating a catalytic effect to attract other investors in the FEF. In accordance with a blended finance mechanism, FEF offers institutional and professional investors the possibility of a de-risked investment.

Beneficiaries

The beneficiaries of FEF are microfinance institutions in Central America and more specifically the SICA region. FEF is providing debt financing to these institutions for the purpose of improving their financial services to women led local enterprises.

In parallel, a technical assistance programme will be implemented by LuxDev and CENPROMYPE to strengthen the capacity of the financial institutions and of women led small and medium enterprises.

Target geographical area  

FEF invest in the SICA region in Central America (Belize, Costa Rica, Guatemala, Honduras, Nicaragua, Panama, Dominican Republic, El Salvador).

Stakeholders

The project has been implemented with CENPROMYPE, a regional institution of the SICA. CENPROMYPE has invested in the FEF alongside LuxDev, which ensures a strong local buy in of the project.

The FEF is also the result of a partnership with Invest for Development (IFORD), an impact investment fund established in Luxembourg, as FEF takes the legal form of a sub-fund of IFORD.