FMO partners Northern Arc to back businesses in Sub-Saharan Africa

FMO, the Dutch entrepreneurial development bank, has partnered with Northern Arc Capital, the Chennai-based platform in the financial services sector, for an innovative financial programme to support women, youth and migrant-led businesses in Sub-Saharan Africa and countries neighbouring Europe.

Under this partnership, Northern Arc will support FMO by way of services, including research on macro trends, assessment of financial landscape, transaction monitoring, performance reporting and modelling support for securitisation transactions in Sub-Saharan Africa and countries neighbouring Europe, for all transactions guaranteed by FMO under the NASIRA programme.

NASIRA is a risk-sharing facility provided by FMO for local financial institutions lending to underserved segments. The mission under the NASIRA is to allow local financial institutions to provide loans to young women, Covid-affected persons and migrant entrepreneurs, who they normally would perceive as too risky.

Marnix Monsfort, director – financial institutions at FMO, said- ‘Reporting and modelling is an essential part of the NASIRA guarantee programme, as it provides the data needed to show to financial institutions real risks of lending to underserved parts of the population, allowing them to continue serving these groups even after the guarantee programme ends.’’

Bama Balakrishnan, COO at Northern Arc Capital, said- ‘This exciting partnership with FMO marks our first step towards the global advisory footprint. We are pleased that our expertise in structuring, due diligence and data modelling under the flagship NASIRA programme will facilitate financial access to small businesses and women, helping them uplift their livelihoods, households and communities in Africa and the Sub-Saharan European neighbourhood. We are certain that being selected as a trusted partner by FMO will attract similar partnerships on the advisory front with other domestic and overseas investors.’