REGMIFA operates as a debt-focused fund that channels money to microfinance institutions, local commercial banks and other lenders that serve micro, small and medium-sized enterprises (MSMEs) across sub-Saharan Africa.

A core part of its model is providing senior financing that is often denominated in local currency, an approach designed to reduce foreign-exchange risk for lenders and, ultimately, the end borrowers they fund.

DEG’s investment is expected to be on-lent through partner financial institutions rather than disbursed directly to businesses.

In practice, that structure means DEG’s capital should expand the capacity of banks, MFIs and other eligible institutions, including fintechs, where they meet the fund’s mandate, to extend credit to MSMEs and related customers in their local markets.

The fund is managed by Symbiotics Asset Management, a Switzerland-based investment manager that also oversees REGMIFA’s technical assistance facility, according to fund documentation and partner disclosures.

REGMIFA was established as a public-private impact investment structure aimed at expanding access to finance for smaller firms and supporting broader economic activity in the region.

Development finance institutions have historically played a central role in their growth; for example, FMO notes that REGMIFA was launched in 2010 by KfW in collaboration with DFIs and other partners.

DEG, which provides financing and support to private-sector enterprises in developing and emerging-market countries, has positioned its investments around mobilizing capital for development outcomes through commercially oriented partners.

While DEG did not disclose further transaction terms in the information available, the new commitment follows a pattern of ongoing capital raises by REGMIFA from a mix of public and private investors to expand its lending portfolio.

REGMIFA’s own reporting shows the fund has continued to grow its balance sheet and outreach, reflecting sustained demand for local financing channels that can reach MSMEs through regulated intermediaries.