A new chance,

NASIRA is a first of its kind project that guarantees local banks to give loans to micro, small and medium-sized businesses in developing countries.
This in turn enables those banks to provide financing to people who could energize the local economy, but normally are considered too great a financial risk. In particular, NASIRA targets young, female and irregular migrant entrepreneurs in Sub-Saharan Africa and the countries neighbouring Europe.

How it works: autonomy and ownership for local banks.

FMO offers guarantees to the local banks but does not provide the money for the loans.
Instead, NASIRA simply takes a significant part of the local bank’s risk should the recipient default.

Because it’s their own money they’re investing, local banks retain ownership of the investment. Equally important, they have a vested interest in seeing it succeed. In addition, NASIRA further enables banks to monitor their investment on a regular basis using a fintech solution. This allows banks to better understand the risks of investing in entrepreneurs and small businesses which is NASIRA’s long term goal.

And should someone default, FMO can help to make the investment profitable again.

How it grows: attracting other global banks

With NASIRA, FMO aims to guarantee the risk up to €500 million invested by local banks in developing countries.
To kickstart NASIRA, FMO will receive €75 million from the European Commission and another €7.5 million from the Dutch government. However, for the project to thrive over the long term, it is also important to make investment attractive to other global financial institutions.

To facilitate this, NASIRA will receive a guarantee commission for any guarantees it provides. This makes it attractive for other financial parties to also issue guarantees. The guarantee’s risk is then divided among the various parties. This structure enables local banks to provide more loans and involves other global banks in a profitable way to engage with the project.

How it makes a difference: helping people and economies flourish

NASIRA enables people who previously were economically marginalized in countries with high migration rates to get a loan from their local banks using local money.
This may transform their life prospects and give them a reason to commit with optimism to a better future. This approach mitigates one of the root causes of economic migration and helps local economies to flourish.

NASIRA adopts a totally different approach to development investing and establishes a new way for global and local banks to participate in high-risk economies. By injecting a sustainable financial boost into local economies, you nurture that community’s most precious economic asset: the next generation of entrepreneurs and business people.

Doing makes the difference.