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Summary of proposed guarantee

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
Comoros Development Bank
Project ID
Fiscal year
Guarantee holder
I&P Afrique Entrepreneurs
Investor country
Host country
Environmental category
Date SPG disclosed
August 28, 2014
Projected Board date
September 27, 2014
Gross exposure
 $1.8 million
Project type
Strategic priority area
Conflict Affected

Project description 

This summary covers an equity investment by I&P Afrique Entrepreneurs (IPAE) in the Comoros Development Bank. The investor has applied for a MIGA guarantee of €1.32 million ($1.8 million equivalent) for a period of up to five years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves the privatization of the Comoros Development Bank (Banque de Développement des Comores, BDC). IPAE, an impact investment fund providing equity to small and medium enterprises and financial actors in Africa, is planning to assume 60 percent ownership of BDC as a result of the acquisition and cession of shares held by the Central Bank of Comoros, a subsequent share capital increase, and the final acquisition and cession of shares held by the government of Comoros.

Environmental Categorization

The project is a category FI under MIGA’s Policy on Social and Environmental Sustainability.

Development Impact

The participation of IPAE in the shareholding of BDC offers the opportunity to reform, improve, and add capacity to a central player in the Comorian financial sector. BDC is the only major banking institution in Comoros offering microcredit and investment loans for very small businesses and SMEs, as well as housing loans. BDC’s long-term credit and loan portfolios are mainly directed at enterprises operating in manufacturing and services, which is in alignment with the government’s development strategy. This project is expected to have a positive impact on Comoros’ economy by consolidating BDC’s current position and providing the bank with the necessary financial capacity and know-how to increase its lending portfolio in the country. IPAE has invested in more than 40 organizations in sub-Saharan Africa and the island countries of the Indian Ocean, where it has brought capital, technical skills, as well as managerial and institutional reform.

This proposed project is aligned with MIGA’s strategic priorities of supporting investments into fragile and conflict-affected countries and countries eligible for concessional lending from the International Development Association. The project will complement the International Finance Corporation’s efforts to strengthen the capacity of local financial institutions and SMEs.

The proposed project would be underwritten through MIGA’s Small Investment Program.

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