International Finance Corporation (IFC), a member of the World Bank Group, committed a $2.5 million risk sharing facility with Société Générale de Solidarité (Sogesol), a leading microfinance institution, to support small and medium enterprises (SMEs) and agribusiness in Haiti. With this new investment, Sogesol expects to provide more than 500 loans to SMEs and agribusinesses by 2023, fostering economic growth and job creation.
This is IFC’s first investment in the region under its Small Loan Guarantee Program (SLGP), which helps financial institutions take on greater risks and finance SMEs in difficult markets. IFC’s investment will help mitigate financial risks by partially covering credit losses on Sogesol’s SME portfolio. SLGP is a partnership with the International Development Association’s Private Sector Window, which supports private sector development, growth, and job creation in some of the world’s least-developed countries. IFC will also provide technical assistance to help strengthen Sogesol’s lending operations to SMEs.