The financial performance and activities of the Fonds pour l'Inclusion Financière (FPM SA) in the Democratic Republic of Congo (DRC) have grown significantly in 2024. FPM SA is majority-owned by the German cooperation fund (KfW) and Belgian BIO Invest.
According to FPM’s Pillar III report, covering the fiscal year 2024, the expansion was driven by initiatives implemented in partnership with the World Bank (WB) and German cooperation.
Established in 2014, FPM is a financial company specializing in refinancing financial institutions and providing portfolio guarantees to facilitate credit access for micro, small, and medium-sized enterprises (MSMEs), as well as low-income populations.
In 2024, FPM raised around $63 million for partial financing guarantees to partner financial institutions, capable of securing up to $200 million in credit for eligible individuals and entities. In detail, $36 million covers 50% of the risks associated with financing granted under the World Bank’s Transforme project, and $26.87 million covers up to 70% of financing extended to women and micro businesses under the Impact project, financed by KfW.
On the lending side, total outstanding loans to FPM customers rose by 53.4% to $50.4 million. Although this growth is substantial, it is more moderate than the 95% increase observed between 2022 and 2023. FPM has adopted a more cautious risk management approach and aims to reach outstanding loans of $81.7 million by 2028.
The institution’s current priority is to enhance services for development finance institutions, particularly those targeting the private sector within the framework of cooperation with the Congolese government. In December 2024, FPM secured a financing line from the Netherlands Development Finance Company (FMO) and is in advanced discussions with the U.S. International Development Finance Corporation (DFC).
FPM also plans to continue improving portfolio quality by collaborating with benchmark institutions. In April 2025, it signed a $3 million agreement with Rawbank to support SME financing.
After returning to profitability in 2024, with net income of $879,000 compared to a loss of $290,000 in 2023, FPM anticipates net income of $3.38 million by 2028. This projection represents an average annual growth rate of 46%, factoring in capitalization effects. The institution is counting on new opportunities in managing guarantee funds and the stability of its equity capital, supported by a $16.5 million credit facility granted by its main shareholder. This credit is convertible into shares at maturity or renewable, enabling FPM to avoid increasing its interest expenses.
Boaz Kabeya (intern)
