Investment Facility to Support the Economic Development of the Mediterranean (FISEM)

Investment Facility to Support the Economic Development of the Mediterranean (FISEM)

Mediterranean countries today have to face a tightening of financial constraints and the impact of the financial crisis moving into the real economy. Businesses in the Southern Mediterranean are dependent on markets in Northern countries and are suffering from the impacts of the recession.
They are finding it increasingly difficult to have access to bank financing, whereas this was a structural requirement even before the crisis. Local banking markets are having to face a drying up of liquidity. In addition, the loss of interest on the part of certain private or institutional investors leads to uncertainties over the implementation of major industrial projects.
 
FISEM was created to be additional to the financial tools that already exist in the region and aims to shore up the financial structure of businesses, particularly SMEs. It is managed by AFD in partnership with Proparco, its private sector financing arm.
 
This new €250m financial instrument will provide financial support to businesses via direct equity investments or via investment funds. It will also support recapitalization in the banking and financial sector in order to increase the latter’s capacities to finance SMEs. Finally, it will contribute to financing major industrial projects in order to support growth and boost both the local SME fabric and subcontractors. 
 
Beyond financial support, FISEM will also help promote the adoption of environmental and social standards.